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Charts & Analysis

Monthly Moves: A Very Flat Nifty in Oct, and 10 Year Sensex SIP Returns Below 8%

Sensex-SIP-returns.png

October hasn’t quite lived up to its promise of volatility in the past, where it’s shown moves as much as -26% or +17%. This time we got just 0.2% on the Nifty taking the year 2016 to about 8.5% return on the Nifty.
nifty-monthly

For the sake of completeness, here’s the Sensex as well. sensex-monthlySIP Returns Fall Into Single Digits

A monthly investment into the Sensex (or the Nifty) has now fallen into single digit returns on average.
sensex-sip-returns
While this sounds small, remember that it means:

  • Rs. 1000 per month became Rs. 40,459 in three years
  • in five years, Rs. 1000 per month is Rs. 77,458
  • in ten years, Rs. 1000 per month is Rs. 188,330

Your return on a fixed income instrument is likely to be lower after taxes.
Since many mutual funds have beaten the index (plus dividend yields of 1.5%) you will probably have seen more returns with funds. We’re just making a note and perhaps its useful to note the long term SIP returns for funds too.