Delay in SIP investments may prove costly over time : WhiteOak Mutual Fund

The cost of delaying an SIP can be significant over the long term. The more time the market takes to bottom out, the greater this cost becomes, assuming all else remains constant, according to a report by WhiteOak Mutual Fund.

According to the report, “The “Cost of Delay” of starting SIP late can be huge over the long term as the longer the market takes to reach the bottom, the higher the “Cost of Delay,” keeping all other things constant.”

According to the release, if someone would have started a monthly SIP of Rs 10,000 in BSE Sensex TRI during January 2008 which was the peak of market cycle six as per a table in the report, as of August 31, 2025, they would have invested Rs 21.20 lakh and the current value of this investment would have been Rs 75.23 lakh at an XIRR of 12.96%.


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Similarly, if somebody had started this SIP in March 2009 which was the bottom of market cycle six according to the same table, as of August 31, 2025, they would have invested Rs 19.80 lakh (Rs 1.40 lakh less than the earlier investor) and the current value of this investment would have been Rs 64.44 lakh (Rs 10.79 lakh less than earlier investor) at an XIRR of 13.05%.

Source: WhiteOak Mutual Fund

It is interesting to note that while the % return is marginally higher for SIPs started at the bottom of the market cycle, the absolute gain in rupee term (Wealth Creation) is far higher for SIPs that began at the top, the release mentioned.

Even the marginal difference of % return goes away over the long-term, irrespective of whether you started at the top or bottom (refer to the return difference for SIPs during the first 6 Market Cycles, i.e. in long-term

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It is impossible to consistently predict the exact Top or Bottom of a Market Cycle. At best, one can create and follow a valuation checklist whenever one deviates from their Strategic Asset Allocation, which should help investors reduce portfolio-level volatility to some extent while participating in the equity market, the release said.

For investors wondering which frequency to choose for the SIP, the report highlights that starting a SIP early and running it for the long term is more important than what frequency one selects. By showing three frequencies - daily, weekly, and monthly, the report highlighted that in the long term, it hardly matters if the investor invests via Daily, Weekly, or Monthly SIP Frequency. All three frequencies end up generating somewhat similar returns.