For most investors, the worry of “Am I investing at the right time?” lingers every month. Is it better to start an SIP when the market is low? What if I started at the top? Will it ruin my wealth creation journey?
📢 Let us bust that myth today with real data.
A recent analysis published in Economic Times (July 2025) and backed by data from Motilal Oswal Asset Management shows that over the long term, the timing of your SIP doesn’t matter as much as staying invested does.
What the Study Reveals
Motilal Oswal’s team evaluated how SIPs have performed historically over 5-year, 10-year, 15-year, 20-year, and 25-year windows, using ₹5,000 monthly SIPs.
They compared returns when SIPs started at the highest NAV of the month vs. the lowest NAV of the month, across different periods.
Here’s what they found:
SIP Returns: All’s Well That Ends…
(Source: Motilal Oswal AMC | SIP Value till March 2025)
| Scenario | SIP return duration | SIP at Lowest index value of the month | SIP at highest index value of the month | Difference in returns |
| Apr-24 | 1 year | 1.2 | -9.9 | 11.0 |
| Apr-22 | 3 year | 16.9 | 13.0 | 3.9 |
| Apr-20 | 5 year | 19.3 | 16.2 | 3.1 |
| Apr-18 | 7 year | 17.6 | 15.7 | 1.9 |
| Apr-15 | 10 year | 15.8 | 14.7 | 1.1 |
| Apr-10 | 15 year | 14.7 | 14.0 | 0.7 |
| Apr-05 | 20 year | 14.0 | 13.3 | 0.7 |
| Apr-00 | 25 year | 15.9 | 15.3 | 0.6 |
🔍 SIP returns are calculated for ₹5,000/month invested till March 28, 2025.
“1.22” means ₹1 invested became ₹1.22 in that span.
What Does This Mean for You as an Investor?
Even if you started your SIP at a market high, you still earned strong returns.
The maximum difference between best and worst timing was just ₹0.38 per ₹1 invested over long terms. That’s a negligible gap when your goal is long-term wealth creation.
More importantly, SIPs done over longer periods (20–25 years) smooth out any short-term market volatility or poor timing decisions.
The Real Secret: Consistency Beats Timing
Financial advisors and wealth managers always say:
“It’s not about timing the market. It’s about time in the market.”
This data confirms it. The longer you stay invested through SIPs, the less impact short-term market highs and lows have on your final return.
Rather than stressing over the “perfect entry,” it’s better to start and stay consistent.
Let’s Visualize the Wisdom
Imagine you had waited for the perfect dip before starting your SIP — chances are you’d still be waiting today.
Meanwhile, those who started anytime and stayed disciplined have already built significant wealth.
Even SIPs started at the worst NAV of the month delivered solid returns.
Should You Worry About Volatile Markets?
Absolutely not.
Markets move in cycles. Volatility is a part of investing. But what really matters is whether your investments are aligned with your long-term goals.
SIPs take care of that automatically — by averaging your cost and compounding your wealth.
What You Can Do Right Now
1- Start your SIP — don’t wait for a “better” time.
2- Stick to your plan — ups and downs will balance out.
3- Increase SIP amount yearly, if possible — it accelerates your goal achievement.
4- Track progress, but don’t panic with short-term news.
Final Word: Wealth Building Is a Marathon, Not a Sprint
This ET Insight backed by real market data proves that discipline beats perfection.
You don’t need to find the lowest NAV or worry if you missed a dip.
Just stay the course, and your wealth will take care of itself.
So, whether you’re a first-time investor or a seasoned one — don’t time your SIPs, just give them time.
