Comprehensive 10-year backtest analyzing whether investing a small sum daily outperforms standard monthly SIP debits in equity mutual funds.
Demystifying Rupee Cost Averaging
Systematic Investment Plans (SIP) allow investors to allocate fixed monetary amounts into equity mutual funds at predetermined intervals. By purchasing more fund units during market corrections and fewer units during bull market peaks, investors benefit from mathematical Rupee Cost Averaging without timing market volatility.
We analyzed historical NAV data from top Nifty 50 Index funds over a 10-year trailing timeline (2016-2026):
Comparative Data Benchmark
| Strategy | Total Invested | Maturity Corpus (10 Yrs) | Annualized XIRR |
|---|---|---|---|
| Daily SIP (₹200 / Day) | ₹6,00,000 | ₹12,48,200 | 14.12% |
| Monthly SIP (₹6,000 / Mo) | ₹6,00,000 | ₹12,39,800 | 14.04% |
| Quarterly SIP (₹18,000 / Qtr) | ₹6,00,000 | ₹12,18,500 | 13.78% |