INVESTING RECORDS
A SIP is a habit; your portfolio is the record of what actually happened
General education for India · Reviewed
A systematic investment plan is a method of investing periodically in a mutual fund. It is not a separate asset class or a promise of a particular return. The underlying scheme still determines the investment exposure.
Separate intention from execution
A ₹5,000 monthly SIP schedule says what you intend to invest. Your transaction record says what was actually invested, on which date and how many units were allotted. A missed instalment should not create imaginary units in a tracker.
In a simplified example, ₹5,000 at NAV ₹50 buys 100 units. Another ₹5,000 at NAV ₹40 buys 125 units. You now hold 225 units acquired for ₹10,000, before transaction-specific adjustments. At a later NAV of ₹42, their value is ₹9,450. Regular investing has not prevented a loss.
Value the correct holding
Match the scheme, direct or regular plan, growth or distribution option and identifier. Similar names do not make two holdings interchangeable. A valuation also needs a date: a stale NAV can make a portfolio total look current when it is not.
Measure the right thing
The difference between current value and invested amount is not an annualised return. When investments occur on different dates, a money-weighted measure such as XIRR accounts for cash-flow timing; unusual cash flows can make it difficult or impossible to interpret. Do not label an ordinary percentage change “XIRR”.
Try in ArthaCanvas: maintain transactions separately from SIP schedules and review the NAV date. ArthaCanvas records investments; it does not execute SIPs or purchase funds.
Further reading: AMFI: SIP and rupee-cost averaging. SIPs do not assure profit or protect against market losses.
General education, not personal investment, insurance, tax or legal advice. Examples are not quotes or promises. Check current rules and seek qualified help where needed.