If you search Google right now for “SIPs are bad,” you will find countless articles convincing you to stop investing. Conversely, if you search “Best way to do SIP,” you’ll find just as many gurus claiming it is the only path to wealth.
- The Data Don’t Lie: Nifty 50 SIP Returns
- The “Commitment” Rule: How Much Should You Invest?
- Goal-Based Investing: The Inflation Trap
- The Secret Weapon: Step-Up SIP
- Where to Invest? (Fund Selection)
- Conclusion
- Frequently Asked Questions (FAQs)
- Q1: Is SIP better than a Fixed Deposit (FD)?
- Q2: What is the best SIP investment strategy for beginners?
- Q3: Can I lose money in SIPs?
- Q4: How do I calculate the right SIP amount?
- Q5: Why should I choose Angel One for SIPs?
- Also Read: नया बीमा कानून 2025: 100% FDI, IRDAI शक्तियां और पॉलिसीधारकों के लिए नए लाभ – पूरी जानकारी
- off, especially for you
Who is telling the truth? Is your SIP investment strategy actually working, or are you just blindly throwing money into the market?
Today, we are cutting through the noise. Based on exclusive insights from SEBI-registered research analyst Rahul Jain, we are presenting the raw data—the “thermometer” of the Indian Stock Market—to prove once and for all how to do SIPs correctly.
The Data Don’t Lie: Nifty 50 SIP Returns
Before we discuss strategy, let’s look at the proof. Many investors panic when the market corrects, but historical data tells a different story.
Here is the SIP return data for the Nifty 50 (the top 50 companies in India) as of November 2025:
| Time Period | Nifty 50 Returns (Annualized) | Nifty 500 Returns (Annualized) |
|---|---|---|
| 1 Year | 17.23% | 15.12% |
| 3 Years | 14.20% | 15.35% |
| 5 Years | 14.05% | 15.66% |
| 10 Years | 14.80% | 15.87% |
| 15 Years | 13.82% | 14.89% |
Chart showing Nifty 50 growth trend with bullish green arrow and coins
The Key Takeaways:
- Zero Loss: Over these long periods, SIPs in broad indices have not generated negative returns.
- Beating Inflation: With inflation averaging 5-6%, returns of 14-15% are effectively doubling your purchasing power.
- Beating FDs: These returns are nearly double what traditional Fixed Deposits offer.
Pro Tip: To start your own SIP journey in Nifty 50 or Nifty 500 funds, you need a reliable platform. We recommend opening a FREE Demat Account with Angel One. Their zero brokerage on equity delivery makes it perfect for long-term SIP investment strategy.
The “Commitment” Rule: How Much Should You Invest?
Most people calculate SIP amounts based on what is left in their bank account at the end of the month. This is the wrong approach.
Let’s use an example. Imagine “Mr. Shahrukh Khan” earns ₹1 Lakh per month and spends ₹70,000. He saves ₹30,000. Should he SIP the entire ₹30,000?
No.
The correct SIP investment strategy relies on Commitment, not just savings.
- The Question: “How much can I commit to investing every single month, even if a recession hits, a war starts, or the market crashes 40%?”
- The Answer: If Mr. Shahrukh can comfortably commit ₹20,000 regardless of external chaos, that is his SIP amount.
History shows (2008 Crash, 2020 Covid Crash) that investors who stopped their SIPs out of fear lost the most. Those who stayed committed are sitting on massive gains today.
Goal-Based Investing: The Inflation Trap
A common mistake is ignoring inflation. You might think you need ₹10 Lakh for your child’s education in 10 years. But have you accounted for rising costs?
- Current Cost: ₹10,00,000
- Time: 10 Years
- Inflation: 5%
- Actual Amount Needed: ₹16,29,000
To reach this goal, you don’t need magic; you need math.
- Monthly SIP: ₹8,000
- Expected Return: 12%
- Duration: 10 Years
- Corpus Generated: ₹17.92 Lakh
Note on Taxes: Always account for Long Term Capital Gains (LTCG) tax (currently 12.5%). After tax, this corpus would be roughly ₹16.88 Lakh—safely covering your goal.
The Secret Weapon: Step-Up SIP
What if your goals require a ₹23,000 SIP, but you can only commit ₹10,000 today? Do you give up?
Absolutely not. You use a Step-Up SIP investment strategy.
If you start with ₹10,000 and increase your SIP amount by just 10% every year:
- Year 1: ₹10,000/month
- Year 2: ₹11,000/month
- Year 3: ₹12,100/month
By doing this for 20 years, you can hit a target of ₹2 Crores, bridging the gap between your current income and your future dreams.
Where to Invest? (Fund Selection)
Don’t complicate things with thematic or sector funds (like Infrastructure or PSU funds) unless you are an expert. Stick to the basics:
- Large Cap Funds: Look for funds with a 10+ year track record (e.g., Nippon India Large Cap, ICICI Prudential).
- Mid Cap Funds: High growth potential (e.g., Edelweiss Mid Cap, HDFC Mid Cap).
- Small Cap Funds: High risk, high reward (e.g., Nippon India Small Cap, Tata Small Cap).
Ready to invest in Mutual Funds?
Angel One offers a seamless experience for investing in Mutual Funds. Track your portfolio, analyze returns, and automate your SIP investment strategy all in one app.
Conclusion
SIPs are not a “get rich quick” scheme; they are a disciplined financial habit. The data proves that volatility is the friend of the SIP investor, not the enemy.
- Commit to an amount you won’t stop.
- Calculate goals with inflation.
- Step-Up your investments annually.
If you follow these rules, you won’t be part of the 80% who fail—you’ll be part of the 20% who build generational wealth.
Frequently Asked Questions (FAQs)
Q1: Is SIP better than a Fixed Deposit (FD)?
Historically, equity SIPs have delivered 12-15% returns over the long term (10+ years), whereas FDs generally offer 6-7%. While SIPs carry market risk, they are far superior for beating inflation.
Q2: What is the best SIP investment strategy for beginners?
Beginners should start with a mix of Large Cap and Mid Cap funds. Use the “Step-Up” method to increase your investment as your income grows. Platforms like Angel One make it easy to automate this.
Q3: Can I lose money in SIPs?
In the short term (less than 3 years), markets can be volatile, and portfolio values can drop. However, data from Nifty 50 over the last 15 years shows that long-term investors have consistently made positive returns.
Q4: How do I calculate the right SIP amount?
Don’t just invest what is “left over.” Calculate your future financial goals (house, education, retirement), adjust for inflation, and use an SIP calculator to find the required monthly contribution.
Q5: Why should I choose Angel One for SIPs?
Angel One is one of India’s most trusted brokers. They offer free equity delivery trades, a user-friendly mobile app, and access to Direct Mutual Funds, which helps maximize your returns by saving on commissions.
