SIP Timing: Should You Start at the Market’s Peak or Bottom?

A common dilemma for investors is:
💭 Should I start my SIP now or wait for the market to fall?
💭 Will I lose money if I invest at the peak?

It’s a natural concern! But what if I told you that timing doesn’t matter as much as you think?

Let’s look at real data to settle this debate once and for all.

Market High vs. Market Low: Which is Better for SIPs?

We analyzed 28 years of market data (1996-2024) to compare two types of investors:

✅ Investor A: Starts SIP at the Market’s Peak (Top)
✅ Investor B: Starts SIP at the Market’s Bottom

Here’s what we found:

Surprised? The difference in returns is marginal, but the wealth created is significantly higher for those who started earlier—even at the market peak!

Key Findings from the Study

1. Wealth Creation is Higher for SIPs Started at the Peak!
Even though returns were slightly better when SIPs started at the bottom, the absolute wealth created was much higher for those who invested earlier—even at market peaks.

2. “Waiting for the Bottom” Costs You More!
Investors who wait for the “perfect” time miss out on months (or years) of compounding. Delaying SIPs can lead to a huge opportunity cost over the long term.

3. Markets Recover – Always!
History shows that even if you invest at the peak, markets eventually recover and grow over time. As long as you stay invested, volatility evens out.

4. Long-Term SIPs Reduce Timing Risk
If you invest for 8-10+ years, it doesn’t matter whether you started at the top or bottom. Over time, market cycles balance out, and your SIP benefits from rupee-cost averaging.

There were so many investors who started their SIPs in 2018-19, right before the COVID. The market crashed in March 2020, and some panicked, thinking they had made a huge mistake. Some stopped their SIP and withdrew the investments, taking a loss.

Fast forward to 2024: Had they just continued their SIP, their investment would have multiplied several times over. Instead, they ended up missing one of the biggest wealth-building opportunities. What’s the lesson? SIPs work best when you ignore short-term noise and stay invested through market cycles.

The biggest mistake isn’t investing at the peak—it’s exiting too early!

Final Verdict: Top or Bottom?

If you start at the top → Your absolute wealth will still be higher over time.
If you start at the bottom → You may get slightly better returns, but with lower wealth creation.
If you wait for the perfect time → You risk missing out on long-term compounding.

Moral of the Story? Don’t wait. Start your SIP today.

💡 Got questions? Thinking about adjusting your SIP strategy? Reply to this email.

Happy Investing! 🚀