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?
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.
Watch this video to understand the basics of SmartSIP and working :
In an expensive market,
In a cheap 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 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. |
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.
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 (SmartSIP+) |
SIP | Units SIP |
| 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:
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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Disclaimer: Investments in Mutual Funds are subject to market risks. Please read all scheme related documents carefully before investing. Past performance is not an indicator of future returns. Read more
There is no guarantee of returns and investors confirm that neither guaranteed returns nor assured returns are being offered to them by RankMF or any of it’s employees or associates.
Past performance may or may not be sustained in the future. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to SmartSIP order type.
The data or figures mentioned on the RankMF shall not be construed as indicative yields/returns of any of the variants or products of RankMF or SmartSIP.
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