Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Charts: Nifty in 2017 is still up 21% after lowest monthly return in August

1 Sept 2017Deepak Shenoy1 min read

Quick Facts

What is "Charts: Nifty in 2017 is still up 21% after lowest monthly return in August" about?
What category is this article in?: Mutual Funds
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 1 September 2017.
How long does this article take to read?: 1 min read
What topics does this article cover?: Monthly returns, Nifty, Sensex
What does the "The 10 Year SIP is now at 8%" section say?: Buying the same amount every month (a Systematic Investment Plan or SIP) would have resulted in an 8.2% gain in 10 years for the Nifty. For three years, it's just 7.4% and for five, it's a more respectable 12.7%. (Note: add about 2% a year for dividends) Of course, many mutual funds have done well, so the Nifty return isn't that useful to hit comparisons, and your mileage would have varied. This is going to be an interesting year. While I sense that I know that a lot of times, my senses are wrong. Living in interesting times could be a curse, but for people in the market, it throws up opportunities. Let's hope for interesting times!

It’s time for our quick monthly stat: Index performance.

Indexes went negative in August, with the Nifty losing about 1.6% in the month. That’s lower than any other month since Demonetization. This doesn’t sound like much but in a month when foreign investors took out over Rs. 14,000 cr. from stocks, domestic investors pumped in enough money to keep the market from crashing.

From now on, however, we need to firm up fast. Because, look at 2007 - 10 years ago. It was total madness from September onwards, and 10 year returns won’t be this great if markets stay here.

The Sensex wasn’t quite that great either, losing more than 2%.

The 10 Year SIP is now at 8%

Buying the same amount every month (a Systematic Investment Plan or SIP) would have resulted in an 8.2% gain in 10 years for the Nifty. For three years, it’s just 7.4% and for five, it’s a more respectable 12.7%.

(Note: add about 2% a year for dividends)

Of course, many mutual funds have done well, so the Nifty return isn’t that useful to hit comparisons, and your mileage would have varied.

This is going to be an interesting year. While I sense that I know that a lot of times, my senses are wrong. Living in interesting times could be a curse, but for people in the market, it throws up opportunities. Let’s hope for interesting times!