Is SIP Really worth it ???

Well monika Halan keeps providing me with some gems to think about and laugh... The greatest joker probably in the markets who justifies SIP as the way to go and when complimented starts giving advice... Even though I was sure of SIP not doing well over bear markets... What I was not prepared for was the results... They are more amazing than the fall in the indices... BTW I did expect the fall and pace of the index... Simple reasons why the fall seemed larger than before was... 1. Initially it fell less... and thus later on fell more to compensate... 2. The fall needs to be calculated in percentage terms rather than sheer numbers... example... fall from 2000 to 1000 is the same as 21,000 to 10,500... So what would a investor make on a SIP of 5 years starting October on Nifty futures if he invested on 1st of every month ??? Meaning a 5 year SIP starting 1st October 2003 ??? 0.5% !!! Yes and this is the absolute return... Incidentally data on futures is available starting 12th June, 2000... A SIP done on the 15th of every month gave an absolute return of 56.32% !!! Imagine investing for 8 years and 4 months and seeing ur investment increase by half !!! Now if there is a point against SIP this is it... Ok... in the first case the highest return was after 51 months and it was 146.78%... Or rs 100 became 246.78 !!! In the second case of SIP starting 15th June, 2000 the highest return was after 91 months and it was 273.73%... or Rs. 100 became 273.73 !!! So much so for taking a big risk... But then these clowns that run the mag will claim SIP over 25 years will return more... Maybe 5 years from now they will go back 10 years or talk of 35 year SIPs !!! Ha Ha Ha Ha Ha... ROFL... PS: She was talking of asset realignment in her last talk by profit booking MFs. Hmmm... Maybe she also knows the SIP results by now... Ha Ha Ha Ha Ha... ROFL...

Visit my esnips folder http://www.esnips.com/web/StockAnalysis/ for the 2 csv files namely... sipstarting1stOctober2003.csv and sipstarting15thJune2000.csv