How does SIP in Equity Mutual Fund Maximize your Return?

We all want to grow our investment faster over the time and always look at someone who can give you some unique tips to maximize your return on investment.

In the same context, we do hear several opinions on TV channel or read about it in many newspapers and we try to practice it on our investment. So, one of the most popular topics for discussion nowadays is ‘SIP in mutual funds’ (Systematic Investment Plan), we often hear experts ideas on how SIP works in mutual funds and how one can get a better return on their investment through SIP’s in equity mutual fund.

The most common views we hear from experts is, ‘continue your SIP in mutual fund irrespective of market volatility’ to average NAV to get a better return and achieve a long-term goal. This is absolutely true and I agree with it.

Here, I would like to add a bit of my viewpoint on SIP in equity mutual fund with my own experience. As we all know currently, our market is in a big bull run so, our SIP’s are invested on higher NAV (net asset value) so, simple tips to maximize your return through SIP,s by 3%-4% in long-term i.e.(7 plus years) is :

  • SIP investment must be higher by at least 30% in the bear market (when the stock market is down) with respect to bull market (when the stock market is up).

For example, if your SIP in equity mutual fund is Rs.5000/month in the bull market, then your investment in the bear market should be 6500/month to get 3% plus more return on your investment in long-term.


  • Keep always some cash available in your account so, that, at any point of time if stock market gets deep correction you can add some lump sum amount to your fund to average your equity mutual fund NAV to maximize return.

Trust me, this simple steps average your NAV more effectively and therefore, maximize your return by     3-4% in long-term as compared to simply continuing your fixed regular SIP,s in equity mutual fund.


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Worked with many Multi-National Companies (MNC) and having a wide knowledge of Healthcare, Automobile and Finance industries; Vinay is a blogger and an engineer who loves to write and share his views on his blog.

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