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A study conducted by Whiteoak Capital Mutual Fund on SIPs reveals that the chances of getting negative returns from mutual funds investment made via SIPs vanishes completely in 8 years.
The study was done based on % XIRR rolling returns on monthly basis for BSE Sensex TRI for SIP between September 1996 to May 2024.
During this period, even the minimum returns from SIPs is lowest for an investment duration of 3 years at -36.2%. It increases to -10.5% for an investment horizon of 5 years. This number becomes positive as the duration of investment becomes 8 years at 1.4%. The minimum return increases steadily for longer investment horizons and becomes 4.6%, 6.2% and 7.4% for investments lasting 10 years, 12 years and 15 years, respectively.
Further, the chances of getting over 12% from mutual funds SIP is 69% in 8 years, 79% in 10 years and 90% in 15 years.
Also, the chance of receiving over 8% return becomes 99% for investment horizon over 10 years while the chances of receiving over 10% returns becomes 95% or higher.
Let us look at the image to know more.
Courtesy: Whiteoak Capital MF
