{"id":8606,"date":"2025-01-28T12:44:05","date_gmt":"2025-01-28T12:44:05","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=8606"},"modified":"2026-08-11T11:40:50","modified_gmt":"2026-08-11T11:40:50","slug":"switch-best-performing-index-every-year-sip","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/switch-best-performing-index-every-year-sip\/","title":{"rendered":"Is It Better to Switch to the Best-Performing Index Every Year in a SIP?"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#successful-sip-the-smart-investors-choice\">Successful SIP: The Smart Investor\u2019s Choice!<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#case-studies-switching-vs-staying-invested\">Case Studies: Switching vs. Staying Invested<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#results-from-the-study\">Results from the Study:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#mid-cap-index-case-study-10-year-rolling-returns\">Mid Cap Index Case Study (10-Year Rolling Returns)<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#small-cap-index-case-study-10-year-rolling-returns\">Small Cap Index Case Study (10-Year Rolling Returns)<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#conclusion\">Conclusion:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Investors often wonder whether switching their <a href=\"https:\/\/navia.co.in\/blog\/which-sip-frequency-to-select\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=sip\">Systematic Investment Plan (SIP)<\/a> to the best-performing index each year could yield better returns. Let\u2019s explore this with reference to the detailed SIP study conducted by WhiteOak Capital Mutual Fund. The same study also asks <a href=\"https:\/\/navia.co.in\/blog\/is-it-better-to-time-my-monthly-sip-investments\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=sip\">whether the monthly SIP date matters<\/a>, and a related question is <a href=\"https:\/\/navia.co.in\/blog\/does-sip-top-up-make-sensewho-should-consider-it\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=sip\">whether a SIP top-up makes sense<\/a>.<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8;\"><strong>\ud83d\udca1 Quick Answer<\/strong><br>No. In the WhiteOak study, an investor who switched every year to the previous year&#8217;s best index earned less than one who stayed put: 14.7% versus 16.7% average XIRR on 10-year rolling returns in the Mid Cap case, and 14.0% versus 14.1% in the Small Cap case. Staying invested was also more consistent.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-e6b714783a1d7bc1d3546cf8851a0263\" id=\"successful-sip-the-smart-investors-choice\" style=\"color:#023368\">Successful SIP: The Smart Investor\u2019s Choice!<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">A successful SIP is more about&nbsp;<strong>\u201cStarting Early\u201d<\/strong>, maintaining the discipline of&nbsp;<strong>\u201cInvesting Regularly\u201d<\/strong>, investing for the&nbsp;<strong>\u201cLong Term\u201d<\/strong>&nbsp;to achieve our&nbsp;<strong>\u201cFinancial Goals\u201d<\/strong>&nbsp;and less about \u201cWhich Date\u201d, \u201cWhich Frequency\u201d, \u201cAt what stage of the Market Cycle\u201d etc.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/navia.co.in\/\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"270\" style=\"max-width:100%;height:auto\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-12-1024x270.png\" alt=\"SIP\" class=\"wp-image-8616\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-12-1024x270.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-12-300x79.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-12-150x40.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-12-768x203.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-12.png 1141w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-0140af89653a64628d108cbc03ae50df\" id=\"case-studies-switching-vs-staying-invested\" style=\"color:#023368\"><strong>Case Studies: Switching vs. Staying Invested<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The study examined two hypothetical investors:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Investor A:<\/strong> Started a <a href=\"https:\/\/navia.co.in\/blog\/which-one-to-choose-for-sip-mutual-funds-or-etf\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=sip\">SIP<\/a> in the Mid Cap Index but switched annually to the previous year\u2019s best-performing index.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Investor B:<\/strong> Continued investing only in the Mid Cap Index without switching.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-a74635192892b6eb7f1181d4103b3bbe\" id=\"results-from-the-study\" style=\"color:#023368\"><strong>Results from the Study:<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-a386ade958f7355c01f9cbd1c603ae6d\" id=\"mid-cap-index-case-study-10-year-rolling-returns\" style=\"color:#ec4d37\"><strong>Mid Cap Index Case Study (10-Year Rolling Returns)<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Metric<\/strong><\/th><th><strong>Switched Index (Investor A)<\/strong><\/th><th><strong>Continued Mid Cap Index (Investor B)<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Average Return (% XIRR)<\/strong><\/td><td>14.7%<\/td><td>16.7%<\/td><\/tr><tr><td><strong>Maximum Return (% XIRR)<\/strong><\/td><td>20.7%<\/td><td>21.5%<\/td><\/tr><tr><td><strong>Minimum Return (% XIRR)<\/strong><\/td><td>3.9%<\/td><td>5.8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-151f28f876722348ab83fcb0915ab94f\" id=\"small-cap-index-case-study-10-year-rolling-returns\" style=\"color:#ec4d37\"><strong>Small Cap Index Case Study (10-Year Rolling Returns)<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Metric<\/strong><\/th><th><strong>Switched Index (Investor A)<\/strong><\/th><th><strong>Continued Small Cap Index (Investor B)<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Average Return (% XIRR)<\/strong><\/td><td>14.0%<\/td><td>14.1%<\/td><\/tr><tr><td><strong>Maximum Return (% XIRR)<\/strong><\/td><td>20.1%<\/td><td>20.4%<\/td><\/tr><tr><td><strong>Minimum Return (% XIRR)<\/strong><\/td><td>2.8%<\/td><td>0.0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=sipswitching_CTA\"><img decoding=\"async\" width=\"1024\" height=\"149\" style=\"max-width:100%;height:auto\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-9-1024x149.png\" alt=\"\" class=\"wp-image-8434\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-9-1024x149.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-9-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-9-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-9-768x112.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-9.png 1028w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-df898eb1f59372cabcbe95444b5bacea\" id=\"conclusion\" style=\"color:#023368\"><strong>Conclusion:<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The data clearly suggests that frequent switching does not guarantee superior returns. Instead, it can cause more harm due to potential delays, market timing errors, and reduced compounding. Investors should focus on a long-term <a href=\"https:\/\/navia.co.in\/blog\/what-is-the-ideal-investment-time-horizon-for-sip\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=sip\">SIP strategy <\/a>aligned with their financial goals rather than chasing the best-performing index annually.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>The Best Strategy:<\/strong> Stay invested with discipline, trust the power of compounding, and avoid timing the market!<\/p>\n\n\n\n<h3 style=\"color:#ec4d37;\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>1. Higher Consistency in Staying Invested:<\/strong> Investors who stayed invested in one index experienced more consistent returns than those switching indices frequently.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>2. Cost of Frequent Switching:<\/strong> Annual switching can lead to missed opportunities due to timing mismatches and delayed compounding benefits.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>3. Psychological Stress of Switching:<\/strong> Frequent switching can cause unnecessary stress and over-trading, which might reduce <a href=\"https:\/\/navia.co.in\/blog\/large-cap-mid-small-cap-sip-long-term-investing\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=sip\">long-term returns.<\/a><\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>4. Data Insight:<\/strong> In both case studies, sticking to a single index provided better or comparable returns with less hassle.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3c15bdc6e3a7d3bfed8097edb58ec5a8\" style=\"color:#023368\" id=\"frequently-asked-questions\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">Is it better to switch to the best-performing index every year in a SIP?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">No. In the WhiteOak Capital Mutual Fund study, the investor who switched annually to the previous year&#8217;s best-performing index earned a lower average return than the one who stayed put. On 10-year rolling returns the Mid Cap case shows 14.7% average XIRR for switching versus 16.7% for staying invested, and the Small Cap case shows 14.0% versus 14.1%.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">What did the switching study actually compare?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Two hypothetical investors. Investor A started a SIP in the Mid Cap Index but switched annually to the previous year&#8217;s best-performing index. Investor B continued investing only in the Mid Cap Index without switching. The same comparison was then run for the Small Cap Index.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">What were the Mid Cap and Small Cap results?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Mid Cap Index, 10-year rolling returns: switching gave 14.7% average, 20.7% maximum and 3.9% minimum XIRR, while continuing gave 16.7% average, 21.5% maximum and 5.8% minimum. Small Cap Index: switching gave 14.0% average, 20.1% maximum and 2.8% minimum, while continuing gave 14.1% average, 20.4% maximum and 0.0% minimum.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">Why does chasing last year&#8217;s best index not work?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Annual switching can lead to missed opportunities from timing mismatches and delayed compounding benefits. It also causes unnecessary stress and over-trading, which might reduce long-term returns. In both case studies, sticking to a single index provided better or comparable returns with less hassle.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">What should a SIP investor do instead?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Focus on a long-term SIP strategy aligned with your financial goals rather than chasing the best-performing index annually. As the article puts it, stay invested with discipline, trust the power of compounding, and avoid timing the market.<\/p>\n\n<\/details>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">We\u2019d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" style=\"max-width:100%;height:auto\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png\" alt=\"feedback yes or no button\" class=\"wp-image-8335\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong> Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>Investors often wonder whether switching their Systematic Investment Plan (SIP) to the best-performing index each year could yield better returns. Let\u2019s explore this with reference to the detailed SIP study conducted by WhiteOak Capital Mutual Fund. The same study also asks whether the monthly SIP date matters, and a related question is whether a SIP [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[209],"tags":[411,23,117,441,237],"class_list":["post-8606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","tag-index-funds","tag-mutual-funds","tag-sip","tag-sip-growth","tag-sip-returns"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Is-It-Better-to-Switch-to-the-Best-Performing-Index-Every-Year-in-a-SIP.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Is-It-Better-to-Switch-to-the-Best-Performing-Index-Every-Year-in-a-SIP.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/8606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=8606"}],"version-history":[{"count":17,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/8606\/revisions"}],"predecessor-version":[{"id":19064,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/8606\/revisions\/19064"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/8615"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=8606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=8606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}