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Mutual Funds

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


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?

  • Ashok says:

    That the Sensex has made only a 5.3% SIP return in the last 10 years makes depressing reading :-(.

  • SPV says:

    Looks a bit low. Hmm … Many funds have done well however in these periods.
    SEBI has done a great thing but cutting out upfront commission and allowing direct schemes. So Indian active mutual funds cost very little. I would think that a balanced approach to staying in good quality credit funds and equity funds chosen for quality and diversified nature (a slightly active allocation between the two) would perform better.

  • Vishnu says:

    Hello Deepak,
    “It’s time to accept and live with a lower yield on both fixed deposits and equities, perhaps?”
    You mean this 8-9% is more realistic than the typical 12-13%?

  • Mayank says:

    Hi Deepak
    Posting 10% gains in March is Okay.
    Just thinking: Nifty made 18.65 low on PE Ratio. Current PE Ratio above 20.Considering even the best case scenario of 13-15% FY17 earnings growth, going forward, Sensex should not trade at higher levels from here on which ll make pe ratio of 22+
    Secondly, considering 8 year cycle, in last 8 years , no big correction happened which took Nifty to below 16 PE Ratio, I think for next bull cycle to start Nifty should test 12-14 PE RATIO once
    What do you , I dont think the bottom is done yet. Whats your opinion?