Planning to Start SIP in Mutual Funds? Try SmartSIP

In this article we cover:

SmartSIP Introduction
How can SmartSIP time the market?
What is the difference between SmartSIP & Regular SIP?
How Does SmartSIP Work?


We all have that one friend or colleague who is known as the ‘smart’ one in the group. This person sets the benchmark for everyone else.

Our school days were spent figuring out how this ‘smart’ person studies, which books he uses, which class he goes to etc.

From class topper to employee of the month, this ‘smart’ person has always been our ‘idol’. ‘Sharmaji ka beta’ was everyone’s nemesis!

We grew up, but the competition never stopped. Marks were replaced by salary and soon we were all caught up in the same ‘Sharmaji ka beta’ loop.

This same thing happens in investments also. Some investments are smart, some not-so-smart.

Mutual funds fall in the smart investment category. But for decades, investors were told that a SIP is the best way of investing in mutual funds.

But it was all a lie!

Yes, a SIP helps create investment discipline and it’s affordable, convenient etc but it’s not SMART!

Your regular SIPs are like Chatur from the movie ‘3 Idiots’. They only provide investment discipline, not superior returns!

Your regular SIP invests a fixed amount at regular intervals. It does not care whether the markets are cheap or expensive. Like Chatur, it just repeats the process without really adding any value to the portfolio.

So, when you do a mutual fund SIP, you are simply investing regularly but not making superior returns.

So, what should you do to generate superior returns?

Introducing, SmartSIP – ‘Rancho’ of the mutual fund industry.

SmartSIP is the smartest way of investing in mutual funds.

As we all know, you never buy things when they are expensive. You wait for a sale to buy ‘quality’ things cheaply.

SmartSIP works on the same principle. It studies the market and decides if the market is cheap or expensive.

In an expensive market,

  • It will not buy units of ‘equity’ mutual funds. Instead, it will invest the SIP amount into a ‘liquid’ fund.
  • In an extremely overpriced market, it will partially sell your equity units to book profits and shift the proceeds to liquid funds for safety.

In a cheap market,

  • It will continue investing your standard SIP amount.
  • It will double your SIP amount when the markets are extremely cheap.

But how can SmartSIP time the market?

Only investing in the ‘right fund’ is not enough to create wealth. You also need to invest at the ‘right time’.

RankMF’s proprietary ‘Margin of Safety Index’ helps you determine the ‘best time’ to invest in an equity fund. SmartSIP applies the “buy low, sell high” principle to your investments using MosDex score.

Over 20 million data points are input in a Giga Trading Engine, which then generates a Margin of Safety score.

A high MosDex score means the scheme is undervalued. A low MosDex score means the scheme is overvalued.

mosdex smartsip

MosDex Score & SMARTSIP

MosDex Score What happens to your SIP
More than 105 SmartSIP doubles your SIP amount
Between 90 – 105 Your existing SIP amount continues
Between 80 – 90 Your SIP amount is invested in liquid funds
Below 80 Profit booking and shift to liquid funds for safety.

What is the difference between SmartSIP & Regular SIP?

SmartSIP is the ‘scholar or smarter’ version of your regular lazy SIP. Here’s how SmartSIP outsmarts a regular SIP.

Benefits  SmartSIP Regular SIP
Regular Disciplined Investing
Buy Low – Sell High
Skips SIP when markets are expensive
Invests in liquid Fund when markets are expensive
Invests double when markets are fairly priced

Historically, SmartSIPs have generated 4%-5% extra returns over regular lazy SIPs.

How Does SmartSIP Work?

Our mind works in numbers. So, let’s see how SmartSIP generates superior returns than a regular SIP.

Scheme: UTI Equity Fund – Regular – Growth

Date NAV  SmartSIP+ Units
21-12-20 189.1638 5000 26.4321 5000 26.4321
23-11-20 182.983 5000 27.3249 5000 27.3249
21-10-20 162.8675 5000 30.6998 5000 30.6998
21-09-20 154.131 5000 32.4399 5000 32.4399
21-08-20 154.1204 5000 32.4422 5000 32.4422
21-07-20 145.7682 5000 34.301 5000 34.301
22-06-20 136.0348 5000 36.7553 5000 36.7553
21-05-20 123.1863 10000 81.1779 5000 40.5889
21-04-20 121.4327 10000 82.3501 5000 41.1751
23-03-20 107.0948 10000 93.3752 5000 46.6876
24-02-20 158.9768 5000 31.4511 5000 31.4511
21-01-20 154.6585 10000 64.6586 5000 32.3293
23-12-19 151.3048 5000 33.0459 5000 33.0459
21-11-19 147.7853 5000 33.8329 5000 33.8329
22-10-19 143.6366 5000 34.8101 5000 34.8101
23-09-19 145.0704 5000 34.466 5000 34.466
21-08-19 133.01 10000 75.1823 5000 37.5912
Total Investment 110000 784.7454 85000 586.3734
Current Value 201.219 1,57,905.60 Current Value 1,17,989.40
NAV 1st Jan 2021
IRR – SmartSIP 55.03% IRR – SIP 51.88%

As you can see in the above table:

  • SmartSIP doubled the investment amount between March & May 2020 as the markets were extremely cheap.
  • SMARTSIP generated superior returns of 3.15% over regular SIPs between 21-08-2019 and 01-01-2021.

Why does an additional 3% matter? Here’s how a 3% difference can cost you crores!

SIP 5,000 5,000 5,000 5000 5000
Years 10 15 20 25 30
15% SIP return 13,93,286 33,84,315 75,79,775 1,64,20,369 3,50,49,103
18% SmartSIP returns 16,81,288 45,96,044 1,17,17,436 2,91,16,561 7,16,26,446
Loss by not choosing SmartSIP 2,88,001 12,11,729 41,37,661 1,26,96,192 3,65,77,343
Absolute Loss % 21% 36% 55% 77% 104%

If you start a regular SIP of Rs 5,000 for 30 years, then your corpus would be Rs 3.5 Crores.

But, had you selected SmartSIP, then your corpus would be a whopping Rs 7.16 Crores!

This is the power of SmartSIP.

By not selecting SmartSIP, you are losing out on Rs 3.65 Crores!

So, what do you have to do to start a SmartSIP? Nothing fancy.

You simply have to open a FREE RankMF account. The account opening takes less than 5 minutes.

Once your account is opened, you need to select a mutual fund scheme and select SmartSIP, and you’re done!

Earning Crores is that easy!

So, be the ‘smarty’ of your group and start SmartSIP today!

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