Five Years of Systematic Investing
This backtest revisits the five-fund equity mutual fund portfolio originally constructed in November 2020. It models a ₹1 lakh monthly SIP over five years , distributed according to the original target weights.
Per-fund breakdown
The figures below are transcribed from the uploaded backtest screenshot. Invested and ending values are in lakh rupees (₹L).
| Fund |
Invested
₹ lakh |
Value
₹ lakh |
XIRR | Alpha | Beta | R² | Sharpe | Sortino | Volatility | Max DD |
|---|---|---|---|---|---|---|---|---|---|---|
| Motilal Oswal S&P 500 Index | 18.00 | 32.28 | 23.6% | +10.2% | 0.44 | 18% | 0.77 | 1.26 | 51.7% | −19.9% |
| HDFC Nifty 50 Index | 12.00 | 13.33 | 4.2% | −0.7% | 1.01 | 99% | 0.06 | 0.09 | 51.6% | −16.6% |
| UTI Nifty Next 50 Index | 6.00 | 7.98 | 11.3% | +4.7% | 1.24 | 75% | 0.35 | 0.52 | 53.5% | −26.5% |
| ICICI Prudential Nasdaq 100 Index | 12.00 | 25.22 | 30.2% | +13.6% | 0.56 | 14% | 0.72 | 1.18 | 52.7% | −30.0% |
| Parag Parikh Flexi Cap | 12.00 | 15.56 | 10.3% | +4.0% | 0.70 | 78% | 0.47 | 0.72 | 51.4% | −17.9% |
What the backtest illustrates
2021–2023: India-led performance
The original analysis describes Indian equities as a key source of strength during portions of this period, while US markets faced inflation and rising interest rates.
2021–2022: US market correction
US index declines offered the simulated SIP opportunities to purchase additional units at lower NAVs.
2023–2025: US market rebound
Technology-led gains in US equities became a major driver of the simulated portfolio's ending value.
2024–2026: Indian market consolidation
The original commentary viewed relatively subdued Indian equity performance as an opportunity for ongoing SIP accumulation. Future returns from those accumulated units are not guaranteed.
Lessons and implementation
Diversification: India and the US can experience different market cycles. Maintaining a predetermined allocation avoids relying on a prediction of which market will outperform.
Rebalancing: The proposed rule is to rebalance back toward target fund weights on a planned annual date, rather than chase recent winners. The original post discussed trimming US exposure after a strong run to restore target weights.
Practical constraints: Overseas-investment limits have periodically restricted SIPs in some Indian international funds. Alternative vehicles, including eligible GIFT City structures, may have different costs, tax treatment and accessibility and should be evaluated separately.
Important limitations
Displayed ending values total ₹94.37 lakh against ₹60 lakh of contributions. The reported 18% XIRR is taken from the author's post, not recalculated here. Fund-level alpha, beta and risk statistics depend on benchmark and measurement choices not supplied in the screenshot. This should not be presented as an independently audited track record.