InvestorQ : What is Alpha SIP in mutual funds & do we have Alpha SIP for ELSS mutual funds?
Pavithra Prabhakaran made post

What is Alpha SIP in mutual funds & do we have Alpha SIP for ELSS mutual funds?

Answer
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4 weeks ago


Alpha is a statistical measure that is used as a proxy to determine the value your fund manager is bringing to the mutual fund. SIP is just a way of investing in Mutual Fund on a regular basis - can be daily, weekly, monthly, quarterly. 

The term Alpha SiP may be coined by some wealth management house to promote a certain in-house product. Now when one says ‘Alpha SIP’, the firm may claim that their choice of SIP will generate better returns than the normal choice of SIPs. Every advisor will claim that they are capable of generating Alpha - some will claim it on the basis of their skillsets and others will claim it on the basis of access to certain algorithms. 

It's better to avoid such tall claims and focus on parameters that are quantifiable. You are better off doing your own research and choosing the mutual fund of your choice rather than falling for these financial products which only seem like sales pitches.