Even i have seen the way market has moved and the way NAV raises. SIP doesent seem to work to people who realize the fundamental assumptions are wrong. Even i feel that SIP is not the best way to invest for the following reasons:
(1) If the NAV comes down drastically in every bear phase then why would anyone invest in Mutual funds. The table that you have given explains it all
(2) Assume I give a cheque for SIP of 3000 per month to be encashed on 10 of every month. What is the guarentee that the NAV will be at low on 10th. It may so happen that because of F&O rollover on 31st the market may come down every month and by 10th of that month the NAV is at its peak...
(3) When was it last time that people bought Shares in SIP ?? If you are buying mutual funds you are buying shares indirectly. So NAVs more or less follow the indices. Has anyone told his financial manages to buy reliance on 10th of every month? it really sounds ridiculous!!!
SIP is a good for the following reasons (1) if you do not follow the market and still want to be part of it (2) you spend your money and you want to set aside money before it reaches you.
