Frequently Asked Questions
Everything you need to know about ETF and stock SIP backtesting.
What is an ETF SIP backtester?
An ETF SIP backtester is a free tool that calculates the historical returns of a Systematic Investment Plan (SIP) in a specific ETF or stock using real past market prices. It simulates investing a fixed amount every month to show your true XIRR, total profit, and dividend income — not a projected estimate.
How do I backtest NiftyBees SIP returns?
Click the NiftyBees quick-link button or type NIFTYBEES in the ticker field and select NSE. Set your monthly SIP amount, choose a duration (1 to 15 years), and click Run Backtest. The tool fetches real historical Yahoo Finance data and calculates your actual XIRR, portfolio value, and how NiftyBees performed through past market cycles.
What stocks and ETFs can I backtest with this tool?
You can backtest any stock or ETF listed on NSE or BSE — simply enter the ticker symbol and select the exchange. Popular ETFs include NIFTYBEES, BANKBEES, GOLDBEES, MON100 (NASDAQ 100), JUNIORBEES, MID150BEES, ITBEES, and SILVERBEES. Individual stocks like RELIANCE, INFY, TCS, or HDFCBANK work the same way.
What is XIRR and how is it different from CAGR for SIP?
XIRR (Extended Internal Rate of Return) is the true annualised return for a series of irregular cash flows at different dates — exactly what a SIP is. CAGR assumes a single lump-sum investment and one exit point, so it overstates how a monthly SIP actually performed. This tool calculates real XIRR using the actual purchase dates and prices, giving you the most accurate return figure possible.
What is DRIP (Dividend Reinvestment) and should I enable it?
DRIP stands for Dividend Reinvestment Plan. When enabled, any dividend paid by the ETF or stock during your investment period is automatically used to buy additional units at the market price of that day, rather than being taken as cash. For dividend-paying ETFs like NIFTYBEES or BANKBEES, enabling DRIP can meaningfully increase your total return and XIRR over long periods. Enable it to see the realistic compounded return including dividends.
How did SIP investments in NiftyBees survive the 2020 COVID crash?
The Nifty 50 index fell nearly 38% between January and March 2020 during the COVID-19 crash. However, investors running a SIP in NiftyBees during this period benefited from rupee cost averaging — their fixed monthly investment automatically bought significantly more units at lower prices. By December 2020 the market had fully recovered, and those extra units purchased at the lows amplified long-term XIRR. Run a 5-year backtest ending in 2025 to see the COVID dip and recovery in your Portfolio Journey chart.
How does SIP in NiftyBees compare to GoldBees historically?
NiftyBees (tracking Nifty 50) has historically delivered stronger equity-driven returns over 10+ year periods, while GoldBees tends to outperform during equity market downturns and high-inflation periods. Running both backtests with the same SIP amount and duration lets you compare XIRR, drawdown, and total profit side-by-side using real historical data. Neither consistently outperforms across all periods — the results depend heavily on your chosen time window.
Does SIP date (1st, 5th, or 15th of the month) affect returns?
For long-term SIPs (5+ years), the difference in XIRR between SIP dates is typically less than 0.3–0.5% per year, because entry-point randomness averages out over hundreds of monthly purchases. You can test different SIP dates directly on this tool to see the exact historical difference for your chosen ticker and period — select any date from 1st to 28th in the form.
What is maximum drawdown and why does it matter for SIP investors?
Maximum drawdown is the largest peak-to-trough decline in your portfolio value during the investment period. For SIP investors, it shows the worst on-paper loss you would have seen mid-journey. The Market Reality Check section of this tool shows your maximum drawdown alongside other key stats. Understanding drawdown is critical — a -40% drawdown that recovers may be fine for a disciplined SIP investor, but the same figure might cause panic-selling for someone unaware of historical volatility.
How is this different from a regular SIP calculator?
A regular SIP calculator assumes a flat annual return (e.g. 12%) every year. This backtester uses actual historical market prices from Yahoo Finance to simulate what actually happened — including crashes, bull runs, dividend payouts, and recovery periods. The result is a real XIRR based on real purchase prices, not a projection. It also shows a Portfolio Journey chart, maximum drawdown, lumpsum vs SIP comparison, and optional dividend reinvestment — none of which a standard SIP calculator provides.
Where does the historical price data come from?
Historical price data is fetched in real-time from Yahoo Finance, which provides adjusted daily closing prices for all NSE and BSE listed stocks and ETFs going back 15+ years. For DRIP calculations, dividend payout history is also sourced from Yahoo Finance. Data is fetched fresh each time you run a backtest — there is no stale cached data.
Is this tool free? Do I need to create an account?
Yes, this tool is completely free and requires no signup, no account, and no login. You can backtest any NSE or BSE stock or ETF SIP as many times as you like. There are no premium features or paywalls.
Can I backtest individual NSE stocks like RELIANCE or HDFCBANK?
Yes. Any NSE or BSE listed stock works with this backtester — not just ETFs. Type the ticker symbol (e.g. RELIANCE for Reliance Industries, INFY for Infosys, HDFCBANK for HDFC Bank) in the ticker field, select the exchange, and click Run Backtest. The tool uses the same real Yahoo Finance historical price data regardless of whether you enter an ETF or an individual stock.
