---
# System prepended metadata

title: Best Strategy for Mutual Fund Returns
tags: [FAQs]

---

---
tags: FAQs
title: Best Strategy for Mutual Fund Returns
description: Are the YouTubers doing anything beyond basic clickbait? Yes! Read more
---

# Intro :ring: 

A member of our community had reached out to share a YouTube video they had come across.

Video in question:

{%youtube s0cY6o9JLMM%}

In this video, the author goes on to show how one could've made **$66\%$** p.a. return from Nifty TRI, from a monthly SIP of $₹5,000$ month.

Time period is from 1st January 2005, to now.

Video was recorded in May 2020.

# Methodology

Author of the video compares outcomes of two SIPs:

- a vanilla, no-intervention, monthly SIP from 1st January 2005 to May 2020
- a _best strategy_ SIP that invests and redeems, using Nifty PE as an indicator


Since Nifty TRI is **not** an investible asset, we use UTI Nifty Index fund as a proxy of investible version of Nifty TRI.

Before 1st Jan 2013, UTI Nifty Index fund didn't have a direct plan version. Hence, we have used regular plan of this fund from 2005 January to 2012 December, and switching entire corpus to direct plan from Jan 2013 onward.

# Outcome of Vanilla SIP

![](https://i.imgur.com/c7uu8WP.png)

In case of vanilla SIP, we've switched entire corpus from regular to direct plan, on 1st January 2013.

It's **12.9\%$ p.a.** return as on 11th April, 2021, with a corpus of 28.29L.

Total gain stands at **₹16.08L**

# Outcome of Best Strategy SIP

![](https://i.imgur.com/09prE7n.png)

- Starts from 1st Jan 2005, SIP of **$₹5,000$** / month, stops on 1st Nov 2007.

- Redeemed entire amount of **$₹3,40,822.78$**, on 3rd Dec 2007.

- Starts SIP from 1st Oct 2008, SIP of $₹5,000$ / month, running up to 1st September 2010, 24 installments.

- **$₹1,78,672.80$** redeemed, on 1st October 2010,
- New SIP of **₹5,000** from 1st August 2011, till 1st Feb 2015.
- **$₹3,32,899.73$** redeemed, on 2nd Feb 2015
- New SIP of **$₹5,000$** from 1st Feb 2016, runs till 1st March 2019
- **$₹2,38,147$** redeemed, on 1st April 2019

Total Gain over 16 years from markets: **$₹1.8$** L

Returns stand at **$25\%$** p.a.

Total final corpus = 

$$₹3,40,822.78 + ₹1,78,672.8 + ₹3,32,899.73 + ₹2,38,147 + ₹91,000 = ₹11,81,542.31$$

# Wrapping Up

Would you rather reach a corpus of $\approx₹11.8$L at $25\%$ p.a., or $₹28$L at $12.9\%$ p.a.?



