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How much will my ongoing SIPs earn?

Dhirendra Kumar tells if you can estimate the return from your investment in equity


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I am expecting the index to stay between 33000 and 35000 because of the general elections next year. How much return will I get from my ongoing SIPs in mutual funds?
- Arvind

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This is the most popular and most difficult question. It is not possible to answer this question. But you should look at the horizon for which you are investing this money. If you are investing it for five years or more and if you feel that the volatility in market will continue for the next one to two years, you should take advantage of it. Continue with your SIPs. And if you are investing this money for a horizon of less than five years, then it is a matter of concern. Then you should not even invest in equity.

If you have been already investing in equity, you might have noticed that the situation in market is never the same. Market is always surrounded by tensions. Sometimes it is the oil prices, sometimes it is inflation or something else. But despite that, if you look at the history of last 20 to 25 years, you will find that if someone had invested for four to five years, he had been able to beat inflation and fixed income returns, which is the basic threshold. It is difficult to guess the market over a short period of time, but over a longer period, say five years or more, it has generally performed well.

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