A smarter way to invest in Mutual Funds
Beat your SIP returns by investing through AlphaSIP. A far intelligent way to invest in Mutual Funds.
A smarter way to invest in Mutual Funds
Beat your SIP returns by investing through AlphaSIP. A far intelligent way to invest in Mutual Funds.
Discover the power of algorithm-driven investing.
Better than SIP. Smarter than SIP
Better returns than normal SIP
If you started an SIP of ₹ 10,000 in HDFC Equity fund in Jan 2004, your corpus as of March 2019 would have been ₹ 68.03 lacs. With AlphaSIP in the same fund, it would have been ₹ 1.03 cr.
Consistent outperformance
AlphaSIP has consistently ourperformed normal SIP for all time periods. Historically, for a 5-year SIP in NIFTY index, AlphaSIP has outperformed normal SIP a staggering 98% of times.
Comparing performance of AlphaSIP with normal SIP
NIFTY Index
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HDFC Top 100
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HDFC Equity Fund
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Franklin India Prima
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Mirae Asset Large Cap
NIFTY Index
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HDFC Top 100
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HDFC Equity
Franklin India Prima
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Mirae Asset Large Cap
₹ 10,000 invested monthly since {{fn[0].Date}} would have grown to ₹ {{convertIndianFormat(fn[le-1].AlphaSIP)}} with AlphaSIP as against ₹ {{convertIndianFormat(fn[le-1].NormalSIP)}} with normal SIP.
Learn more about AlphaSIP. Talk to an expert.
Frequently Asked Questions
Why are SIPs not the best way to invest in Equity Mutual Funds?
Normal SIPs are not the best or the most optimal way to invest in mutual funds. Why? Because with SIPs, you invest in equity mutual funds every month irrespective of the market conditions.
Consider the chart below:
If you would have invested in NIFTY index when NIFTY PE was greater than 25, you would have, on an average, made only 2.8% return, even if you held your investment for as long as 5 years.
This begs the question - why invest in equity when NIFTY PE is above 25? But your normal SIP does exactly that. Irrespective of the market conditions, it will invest in equity mutual funds every month. SIPs do not have any intelligence built in.
Won't my normal SIPs guarantee high returns in the long term?
Well, that's what you have always been told. But that doesn't make it true.
Consider few examples below:
If you did an SIP in Sensex from Oct 1993 to Oct 2003, your annualized return would have been just 2.8%. That's 10 years of SIP!
5-year SIP in HDFC Equity Fund from March 2004 to March 2009, would have resulted in annualized return of -2.9%. You would have lost money!
There are many more examples to show that even if you continue your SIPs for long-term, you are not assured of high returns.
This is not to say that investing for long-term doesn't have its advantages. It reduces the risk, thus increasing the probability of earning higher returns. However, it can still fail.
How is AlphaSIP better?
Because AlphaSIP brings intelligence to your Mutual Fund Investing. Intelligence, that is built by analysing tons of historical data and market patterns.
Consider an example:
We talked about a very simple form of intelligence when we discussed NIFTY PE above. We have seen that historically, if we invest in NIFTY when the PE is above 25, on an average, we make just 2.8% annulized return over a 5-year period. On the other hand, if we invest when PE is below 15, we earn a bumper 27% return over a 5-year period.
Using this very simple information, suppose we were to make our SIPs a bit intelligent. We decide that our holding in equity and debt will be based on NIFTY PE levels. Higher the PE, higher proportion will be in debt and lower the PE, higher proportion will be in equity.
Did you know that just by bringing this very simple intelligence to your SIPs, you can outperform normal (all equity) SIPs by 2% - 3% on average?
This was an example of a very simple PE based intelligence. AlphaSIP is based on algorithms that work with number of factors. Using these factors, our algorithms decide on the most optimal debt-equity mix for you at any given point of time. And this awesome intelligence ensures that AlphaSIP beats normal SIPs by a margin.
Learn more about AlphaSIP algorithm →
Does AlphaSIP guarantee better returns?
No. AlphaSIP DOES NOT "guarantee" better returns? No investment strategy can "guarantee" anything. To put it simply, with AlphaSIP, the probability of earning better returns than normal SIP is fairly high.
In order to understand the effectiveness of AlphaSIP, our best bet is to compare it's performance vis-a-vis normal all-equity SIP. You can check the performance comparision here →
Just to give you a perspective, if you were to invest in NIFTY index for a 5-year SIP, AlphaSIP would have outperformed normal all-equity SIPs a staggering 98% of times.
Get in touch for more performance data →
How does AlphaSIP work?
For you as an investor, the working of AlphaSIP is no different than normal SIPs. Every month, you account will be auto-debited towards purchase of Mutual Fund units, just like SIPs.
However, unlike SIPs, your monthly investment amount is not used to purchase equity mutual funds. Instead, we purchase liquid/arbitrage funds. Our technology works in the background to switch from liquid/arbitrage funds to equity mutual funds based on the recommendation of our algorithm. In more simple terms, we set up your "SIP" in liquid/arbitrage fund and move to equity mutual funds based on our algorithm.
Consider an examples:
Suppose you want to invest ₹ 20,000 per month in AlphaSIP. As per Finpeg's fund selection algorithm, suppose it is decided to invest ₹ 10,000 in a Reliance Large Cap Fund and ₹ 10,000 in L&T Mid Cap Fund (target equity funds).
We will then set up SIPs of ₹ 10,000 each in Reliance Arbitrage Fund and L&T Arbitrage Opportunities Fund. Every month, auto debit from your account will be used to buy units of the above mentioned arbitrage funds. Also, in the background, our platform will switch from these arbitrage funds to the target equity funds based on debt-equity mix recommended by our algorithm.
Also, just like SIPs, auto debit from your bank account will happen through a mandate (NACH or online).
Learn more about the process →
Why is AlphaSIP offered with regular plans and not direct plans?
Good question. When you can earn 0.9% - 1.0% extra returns annually, why not offer direct plans?
Two reasons:
1. We are not a mutual fund transaction platform. Unlike other online mutual fund sellers, we are not just a technology platform facilitating SIP transactions. We offer wealth solutions based on cutting-edge research. If you were to look at historical performance of AlphaSIP, it more than compensates for extra returns generated by direct plans.
2. The number does not add up to 0.9% - 1.0%. Unlike normal SIPs, AlphaSIP is not invested into equity all the time. More often than not (depending on where markets are), there will be a mix of equity and liquid/arbitrage fund. The return delta on liquid/arbitrage funds (between direct and regular) is much lower than equity funds.
How secure is my money when I invest in AlphaSIP?
As secure as it can get!
We take the security of our platform and privacy of all your data extremely seriously. And therefore, we have built a system with best-in-class security and privacy features.
Hosted on Amazon Web Services, all sensitive client data is encrypted and stored with 256 bit SHA encryption. Furthermore, we have tied up with the Bombay Stock Exchange (BSE) as our backend partner and all the transactions (including payments) are executed through BSE’s StarMF platform.
In fact, the mandate that you will register for auto-debit will be in the name of BSE and NOT Finpeg. Your money never comes to Finpeg account. It is directly routed by the BSE to respective AMC for completion of purchase.
Great! I am convinced. What next?
You can start by creating your account on Finpeg.
Once your account is created, an investment expert will give you a call to guide you through the enitre set up process. He/she will also answer all your questions and explain AlphaSIP in detail if need be.
The same person will be your relationship manager and your single point of contact for all your future queries and requirements.
If you want to talk to an expert before creating your account, leave your contact details here.
Not convinced yet? Get a detailed overview of AlphaSIP from an Investment Expert