Which SIP Date Gives the Highest Returns?

Which SIP Date Gives the Highest Returns? Does SIP Date Really Matter?

The date you choose has very little impact on your overall SIP returns. The SIP date that gives the highest return is neither the 1^stnor the 31^st. Or any other date in between. Long term market data of more than 18 years clearly showed that there was no real difference between SIPs started on different dates of the month.

But there still might be some dates that might fit your circumstances better than the others. Let’s discuss that.

Why does the SIP date even matter?

Let’s be honest, investing comes with a lot of small decisions.
Which mutual fund to choose? How much to invest? For how long to invest?
The list of decisions is almost overwhelmingly large.

Along with these questions, there is another one that bites the head of an investor a lot. Which is the SIP date.

While discussing the investment plan with our new client Rajeev Sharma, we got to a point where he said he needed to think just one thing through before finalizing everything.
After finalizing everything with us, he went back to his home near Kacheri, Dharamshala.

He called us back the same evening and said that he is confused with the SIP date selection between 5^th or 15^th of the month.
He wanted to set 5^th but someone had told him that the SIP gives best returns when you take the exact middle of the month as the SIP date.

Experienced investors might find this funny but while dealing with investors across Dharamshala, Kangra, Palampur, we have noticed this as a very common confusion. We take this as seriously as any other query.

We presented him with the 18-year data that clearly shows that the “middle of the month” theory that his friend gave him was not true. He understood it well enough and then we at Steadrow capitals went on to select the actual “best” date for him. Which did not promise any more returns but some other actual benefits.

At Steadrow Capitals, these stories are not rare. Some investors believe that investing on the 1st of the month could be better because the market may be lower at the beginning of the month. Others prefer the 10th, 15th or another date because they believe it could result in better NAVs over time. Some have their own experiences with some specific date and they think it will always give better returns.

The question is simple: does the date actually make a meaningful difference to your long-term returns?

The best way to understand the answer to this is to use the actual market data instead of isolated experiences and feelings.

What happens if you compare different SIP dates?

An analysis done by Steadrow Capitals looked at more than 18 years of market data and compared SIP investments made on 31 different dates of the month across three market indices. The aim was simple, to know the answer of this question with actual data.

The idea of the analysis was straightforward.

Suppose an investor invested the same amount every month. A typical SIP. The only thing that changed was the date of the SIP. From 1^st to 31^st. Every day of the month.

Then, the returns were compared over the long term.

And the result that this analysis gave could be surprising to some and for others it might be clear as the sky.

There was no real difference in long-term performance between the different SIP dates.

So if you or someone you know have been spending time trying to find the Best date for your SIP, the data does not support your hunt. The idea that one particular date consistently produces better long-term returns is totally false.

So how to select your SIP date?

Just because there is no best date for the highest returns, does not mean that there will not be a best date for you. Your overall returns depend on a lot of things and you can get those things anchored in your favor by choosing the right SIP date. Not specifically targeting the highest returns but something else that can give you a better chance at it.

If the SIP date does not have a meaningful impact on long-term returns, then the better way to choose it is based on when your money actually becomes available.

At Steadrow Capitals, some clients get their monthly salary right on the 1^st while some have not so unusual salary date of 21^st of the month. We have a simple idea while advising the best SIP date to all the clients.

For a salaried person, this usually means choosing a date shortly after the salary is credited.

For example, if your salary normally comes on the 1st of the month, you could keep your SIP around the 4^th to 5^th.

The reason is not the returns but practicality.

Your SIP needs sufficient money in your bank account when the instalment is due. If you choose a date before your salary arrives, a salary delay can leave insufficient balance and cause the SIP instalment to fail. We absolutely hate it when that happens. Because it is a lose-lose situation for everyone. When you select the SIP date that increases the chances of SIP bounce then you are just doing charity for the banks. You get penalized for it and that money goes to bank, not your SIP. That is a totally unnecessary situation. That’s why we at Steadrow capitals are very careful with the client while deciding on the SIP date.

We recommend aligning SIP dates with expected cash flow. The common example would be of a salaried investor choosing a date a few days after salary credit, while someone receiving rental or business income can align the SIP with those cash flows.

A simple example

Imagine someone earns ₹80,000 every month and normally receives the salary on the 1st.

They set a ₹20,000 SIP for the 1st.

If the salary gets credited late by a couple of days, the bank account may not have enough money when the SIP is processed.

Now compare that with a SIP scheduled for the 4th.

The investor gets the salary first, the money reaches the account, and the SIP is processed a few days later.

The investor has not sacrificed some special “high-return date” by choosing the 4th.

They have simply chosen a date that is easier to maintain. The practical reason, not something for the returns.

That matters because the purpose of an SIP is regular investing. The date should make that process easier, not turn it into another market-timing decision. And you would be surprised to know how much these simplifications actually help your returns in the long run.

There is another side to it too

The analysis done by Steadrow capitals might be interpreted as a simple “Just be away from the salary date”. But that would be only half of the story. The data told one half and the other half we figured from the experience that we had with the investors.

Ishant Mahajan from gaggal, Kangra came to us to start his SIP.
We sat and discussed about all the aspects from his risk, goals, horizon and market preferences.

When the discussion was in the final phases, the discussion went towards the SIP date. He was confused so we presented the data to help him decide.
He concluded that the SIP date won’t matter for returns and the only thing he has to worry about is that his salary comes in before the SIP date. So he decided to set 20^th as the SIP date while his salary date was 1^st.

On the view of the data, this seems perfectly fine because even if the salary delays, it still has a high chance to be credited before 20^th. This is where we realized that the data kept one thing out. Which is the human tendencies.

Choosing the SIP date far away has its own consequences

Even though Ishant has respected the data and considered his salary cash flow while selecting the SIP date. Made his decision in to not be too early on SIP date.

But because the date was so far away from his salary date that he was making other payments before the SIP date would come. This was putting him on a high risk for the SIP bounce.

Steadrow Capitals solved this problem by recommending the SIP date at a comfortable distance from the salary date but not too far away. His salary date was 1^st and his SIP date was decided at 5^th. This covered the unexpected salary delays, while also making sure that he commits his investments before other things.

Ever since that, his SIP has never bounced. Turns out, he actually found the best SIP date for himself.

Which is the best SIP date for investors in Dharamshala

Investors in Dharamshala can decide their SIP date by keeping these factors in mind.

1. What is the salary date ?
2. What is the date for my other financial commitments ?
3. How much can the salary be delayed, if ever ?

There are a lot of government employees in Dharamshala so generally they don’t get their salary delayed as much. However, they must still keep some headroom for any unexpected delays. The same logic can be applied and if the salary date is 5^th then the investors might find the sip date to be 10^th as comfortable. We recommend investors in Dharamshala, kangra and palampur to keep their other important financial commitment dates in mind too.

What if you run a business and do not get monthly salary?

A lot of business owners in Dharamshala face this problem. Business income is not as linear as a monthly salary. This is why it requires more attention to decide their SIP. However, the same logic can be applied to them as well.
A few things we ask investors while decided is when do they get their profits, commissions, income from their business credited to their account ?
Business income generally has multiple legs so these amounts can come on different days instead of coming on one single day like a salary.

When business owners discuss their SIP date with us, we ask them to list the dates on which they get paid by their multiple sources.

For example, if a businessman gets his account credited on 2^nd,5^th,7^th and 8^th. Then we recommend him to decide the investment date on 11^th-13^th. This way, all the credit days are covered, the unexpected delay has been factored in, while also making sure to not go too far from it.

SIP date is just one factor. The actual investment plan for a business owner can differ a lot from that of a salaried person. And detailing of that is beyond the scope of this article.

At steadrow capitals, we take this difference of salaried and business owner very seriously. We craft customized plan for investment of business owners by weighing in their non linear income, seasonal changes and many other factors that impacts only a business owner. Choosing SIP date is one of them.

What is the best SIP Date for NRI investors?

NRIs will require a little extra planning in this. Your salary date will be different from the date when that money will be credited to your Indian NRE/NRO account. We all know that international transfers can take more time than domestic transfers. Then you also have to consider that there might be a combination of holidays that can cause a long stretch of banking holidays in both countries. NRI investors will have to keep all these things in mind while deciding on their SIP date.

Time-zone differences can matter as well. An NRI earning in the US, UK, UAE or another country may have a different salary cycle and banking schedule from India.

So for NRI investors it can be more practical to choose a date that gives enough buffer for:

Your salary to be credited in your overseas account
The money to reach your Indian NRE/NRO account
Any bank or transfer processing time
Maintaining sufficient balance before the SIP is due
Potential delays in salary

Whenever we are onboarding NRI investors at Steadrow Capitals, we make sure that they have enough buffer for all the possible delays. They provide us with their salary date and we use years of data to predict the possible time it will take in the bank processes. All of this results in the ideal SIP date which has considered all the factors in it. This gives our investors that necessary peace of mind to our investors, which eventually allows them to keep investing with discipline.

In short, for an NRI, the best SIP date is usually the one that comfortably fits the entire money-transfer cycle, not just the salary credit date.

The bottom line

There is no particular SIP date that can reliably be called the best SIP date for higher returns.

The 1st is not automatically better than the 15th. The 15th is not automatically better than the 25th.

The long-term data shows that the difference between SIP dates is insignificant compared with the much bigger factors that actually affect your investment outcome. Below is the full table of the data research we did at Steadrow Capitals.

So choose your SIP date based on your cash flow.

Whether you are salaried or business owner, keeping the SIP a few days after your salary/cashflow date is a practical approach. It gives the money time to reach your account and reduces the chance of the SIP failing because of a delayed salary or insufficient balance.

The goal is to just pick a date you can consistently maintain and stop worrying about finding a magical SIP date.
And if you can find a date that you can maintain with discipline, then it automatically gives you a high chance of getting better returns.

As mentioned multiple times in this article, choosing the SIP date is only one small part of setting up a full investment plan. The more important question is whether the SIP amount, fund selection and investment strategy actually fit your income and financial goals.

If you are starting a SIP or reviewing your existing investments, Steadrow Capitals can help you structure them around your goals, cash flow and investment horizon. You do not need the best SIP date, you just need a strategy that you can stick to.

Data: Index TRI (XIRR %)

SIP Date	Nifty Largemidcap 250	Midcap 150	Nifty 100
1	15.81	17.83	13.75
2	15.80	17.82	13.74
3	15.79	17.81	13.73
4	15.77	17.79	13.72
5	15.78	17.79	13.73
6	15.79	17.80	13.74
7	15.80	17.81	13.75
8	15.82	17.83	13.76
9	15.81	17.83	13.75
10	15.80	17.82	13.74
11	15.81	17.83	13.76
12	15.83	17.84	13.77
13	15.82	17.83	13.76
14	15.81	17.83	13.75
15	15.81	17.82	13.75
16	15.81	17.82	13.75
17	15.83	17.85	13.76
18	15.83	17.85	13.76
19	15.83	17.85	13.77
20	15.84	17.86	13.77
21	15.84	17.86	13.77
22	15.86	17.89	13.79
23	15.86	17.89	13.79
24	15.88	17.91	13.80
25	15.86	17.90	13.78
26	15.86	17.90	13.78
27	15.86	17.90	13.78
28	15.85	17.89	13.77
29	15.81	17.84	13.74
30	15.81	17.84	13.73
31	15.79	17.83	13.71

Data source : Nifty index values : TRI XIRR% (2005 – 2024)

FAQ About SIP Dates

Which SIP date is best for higher returns?

There is no specific SIP date that consistently delivers higher long-term returns. The analysis by Steadrow Capitals covering more than 18 years of market data found that the difference between different SIP dates was not significant. It is generally better to choose a date that fits your cash flow.

Is SIP on the 1st better than SIP on the 31st?

No. Analysis by Steadrow Capitals on 18 years of data clearly shows that there is no reliable evidence that choosing the 1st over the 31st consistently produces better long-term returns. Both dates can work equally well when the investment is continued regularly.

Should I choose my SIP date after my salary date?

Yes. Choosing a SIP date a few days after your salary is credited can be considered practical. It gives you time to receive the money and maintain sufficient balance in your account, reducing the chances of a SIP bounce and penalties.

Can changing my SIP date increase my returns?

Analysis on 18 years of data by Steadrow Capitals shows that there is no particular date that can be relied upon to generate higher long-term returns.

What happens if my SIP date falls on a weekend or holiday?

If the selected SIP date is a non-business day, the mutual fund transaction is generally processed on the next business day.

Should I stop or change my SIP because another date has better returns?

No. Trying to repeatedly change your SIP date based on market movements can distract from the more important factors like investing consistently, having an appropriate asset allocation and staying invested for your intended time horizon. Analysis on 18 years of market data done by Steadrow capitals shows that it will not result in any higher returns.

Investment Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice, a recommendation, or a guarantee of returns. Investors should consider their own financial goals, risk appetite and investment horizon, and consult a qualified professional where appropriate.

Real-World Scenarios Disclaimer: Any client or investor scenarios mentioned in the article are based on genuine real-world experiences and cases encountered with the clients of Steadrow capitals. However, names, identifying details and other personal information may have been changed or omitted to protect the privacy and confidentiality of the individuals involved. The underlying circumstances and lessons have been retained for educational purposes.

Himanshu Thakur

Holding the NISM Series V-A certification, Himanshu is a Partner at Steadrow Capitals. Backed by over ten years of equity market experience, he helps investors make informed financial decisions utilizing strictly goal-oriented strategies.