Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Nifty's Best March Ever With a 10% Return, But Multi Year SIPs Now In Single Digits

1 Apr 2016Deepak Shenoy1 min read

Quick Facts

What is "Nifty's Best March Ever With a 10% Return, But Multi Year SIPs Now In Single Digits" 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 April 2016.
How long does this article take to read?: 1 min read
What topics does this article cover?: Monthly returns, Nifty, Sensex
What does the "SIP returns for the Three, Five and 10 year terms now under 10% each" section say?: If you had done a regular investment in the Sensex you would get 9.9% annualized returns on your money for a three year term. But even the five year term is now just 8.1%, and the ten year term is abysmal at 5.3%.

This was a phenomenal March by any standards, with a 10%+ return for the month. That’s the second highest that the Nifty has ever seen in March, just ahead of the 10.7% in 2006.

Nifty Monthly Returns

And then we have a fantastic Sensex too (which had a better March in 2006 but a way better number in 1992). Click for a larger image:

Sensex Monthly Returns

SIP returns for the Three, Five and 10 year terms now under 10% each

If you had done a regular investment in the Sensex you would get 9.9% annualized returns on your money for a three year term. But even the five year term is now just 8.1%, and the ten year term is abysmal at 5.3%.

Sensex SIP Returns

Sure some mutual funds have done better - and you should consider a 2% dividend yield that would have juiced up your returns too, but these numbers are way below the “historical” growth numbers that show that equities have made us 18% returns. It’s time to accept and live with a lower yield on both fixed deposits and equities, perhaps?