Wednesday, August 02, 2006

SIP doesnt score, timing is everything.

Contrary to the popular belief, SIP doesnt score. Only the market sentiment induced timing, gives greater returns.

Looking at my Current Portfolio in 7 SIP funds, invested from Nov 2004 (closer to 5 lakhs), SIP has not given even half of the timing investments, with lumpsum.

These are the funds I invested in (All dividend payout options - all re-invested back as lumpsum).

HDEQ - HDFC Equity Fund
HDT200 - HDFC Top 200
BDY1 - Biral Dividend yield
DSO1 - DSP Opportunites
FTP1 - Franlin Prima
KPB1 - Franklin Bluechip
ANM - Birla New Millenium

Regular 248606.44 562919.56 126.43%
SIP 220967.71 322900.78 46.13%
All 469574.15 885820.34 88.64%

I have mailed the exact details and reasons of my timing of investments, to the self style guru of Mutual Funds, Dhirendra Kumar of, and for some reason he is silent. Immediately there is one story appearing saying SIPs score, Always. That is total bull.