Mid cap SIPs best suited for long-term investments, says White Oak AMC study

The midcap segment is the best investment option for investors seeking to invest via the long-term SIP route, says a report by White Oak AMC. The study points out that, among the three market cap segments such as large cap, mid cap and small cap, the midcap segment has offered the best returns in the long term. The mid cap funds have beaten their large and small cap peers on an average return basis in the 10 Year Monthly Rolling Returns considered from Apr-05 to Sep-22.

The AMC has released their ‘SIP Analysis Report based on the most frequently asked queries about SIP.’

Source: White Oak AMC


Other common questions asked by investors are the preferred and beneficial date to start an SIP or whether the SIP amount should be split into multiple-date SIPs or not? The study of the last 26 years' index data reveals no meaningful difference between the average return of different dates’ 10 year SIPs. The report suggests that perhaps the best SIP date is the date when an investor usually receives money in his/her bank account (For Example: Salary Credit Day).

Here’s a look at 10 Years Average SIP Return (% XIRR) on Daily Rolling Basis for a particular date of the month for S&P BSE Sensex TRI between Sep 1996 to Sep 2022.

Source: White Oak AMC

A historical data analysis suggests 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 (% XIRR). The AMC says that the key takeaway from the analysis is to focus on investing a small amount regularly for the long term.

Source: White Oak AMC