SIP (Systematic Investment Plan) vs SID (Sahi Investment Day)
Nowadays, Mutual funds are the choice of Investors for parking their surplus money for getting good return or for saving tax. A large number of people starts SIP (Systematic Investment Plan) in which a certain amount is deducted from the account of Investor on a fixed day of each month.
We invest our money using SIP for two major reasons which are -
- Limited knowledge of Share Market
- Share Market requires significant amount of time on Research
We all know that Majority of mutual funds companies invest the money of unit holders in the share market which is volatile and uncertain. We can measure the performance of Share Market using Indicators of BSE and NSE which is SENSEX and NIFTY respectively.
Now, we understand the functioning of Mutual Fund companies, they invest our money in the share market and based on the invested share value, NAV (Net Assets Value) of the fund is ascertained. NAV is the price of Mutual fund based on which Investor is allotted with the units of mutual funds.
We believe that SIP can give good return over the period of time due to averaging of market ups and downs. This is pretty much true and we all are doing this but we can get more higher returns than SIP by identifying SID (SAHI INVESTMENT DAY).
We can get up to 2% higher returns using technique of Identifying the SAHI INVESTMENT DAY.
Sahi Investment Day is nothing but investing manually when Share Market is down which brings more units to investor as NAV of fund is lower than other days. You just need to monitor the performance of SENSEX and NIFTY on google and if you found the indicators are lower in last 7 days then Invest your desired amount before 3 PM of that day.
This is very important to note the relevance of investment time i,e, 3 PM of investment day as your orders are processed by mutual fund companies on the same day NAV if orders are placed before 3 PM. Hence you should follow the below simple steps -
- Check performance of NIFTY and SENSEX between 2 PM to 3 PM daily on Google, it will take 2 minute of your time.
- If NIFTY and SENSEX is lower in last 7 days or market crashes for some temporary reason then place a buy Order before 3 PM and vice versa. It will give you higher units due to lower NAV.
- If you want to sell your units then check if market is up or not. If market is up then sell your units before 3 PM so you can get the higher NAV.
Below is an example of 3 months investment in SIP vs SID -
In above example, you can see that investor gets 0.50 extra unit in SID as compared to SIP. Here, investor just do his simple research to identify the lower Indicator and invest on the same to get the advantage of lower NAV.
Happy Learning !!!
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