The first point is broadly true of funds that have seen a decade ending now. For instance, a multi-cap fund like HDFC Equity returned 29.6 per cent compounded annually point-to point between 2002 and 2012 while its SIP would have delivered an IRR of 21 per cent. This is true of mid-cap funds like Sundaram Select Midcap. This ten-year period was marked by a sustained bull run (the turbulence in recent years notwithstanding) with the Sensex moving from 3200 to 18300 now.Over such a long rally, your SIPs returns would be marginally dented by the fact that you have been buying additional units at higher costs for a good part of the period.<\/p>\n
But you need to keep in mind that the last decade same a multi-fold jump in markets as it was in this period that foreign money inflows saw a pick up. Hence to expect a similar six-fold jump in the next decade may be hard. We have already gone past five years post 2007, with the market remaining flat \u2013 the Sensex down by an annualized 1.5 per cent.<\/p>\n
![\"\"](\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2012\/11\/sip.jpg\" "\\"sip\\"")
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