SIP is good for any market because nobody knows the direction of the market.
For example if you take the period 1/1/96 to 1/1/99 here are 3 year returns of equity MF.
Birla Advantage 20.4
Franklin India Bluechip 12.58
Franklin India Prima Plus 10.04
Morgan Stanley Growth 8.84
HDFC Equity 8.41
Reliance Growth 8.39
HDFC Capital Builder 5.61
UTI Master Plus '91 0.68
Magnum Equity 0.29
UTI Master Growth -0.02
Reliance Vision -0.06
Magnum Multiplier Plus -0.07
Magnum Global -0.98
JM Equity -3.02
UTI Mastershare -3.09
ICICI Prudential Power -3.81
Franklin India Prima -3.94
UTI Equity -4.3
LICMF Equity -9.42
Taurus Bonanza Exclusive -11.5
Taurus Starshare -11.89
Tata Growth -16.67
LICMF Growth -18.86
Taurus Discovery Stock -23.32
Most of them are worse than bank FDs. After a brief bull spike in 1999 Investors had to deal with 3 more rough years between jan 2000 & jan 2003. Here are the 3 year returns between jan 2000 to jan 2003.
Tata Growth 7.81
Reliance Vision 2.96
Taurus Bonanza Exclusive 1.47
UTI Services Sector -0.28
Templeton India Growth -1.16
HDFC Equity -2.77
Franklin India Bluechip -5.21
UTI Index Select Equity -5.34
UTI Master Value -6.71
HDFC Top 200 -7.18
Magnum Contra -7.98
Franklin India Prima -8.46
UTI Master Growth -9.68
Franklin India Prima Plus -10.15
Tata Pure Equity -10.2
Sundaram BNP Paribas Growth Reg -10.31
UTI Mastershare -10.46
HDFC Capital Builder -10.55
Reliance Growth -10.73
UTI Master Plus '91 -10.86
Birla MNC -11.98
UTI Equity -12.23
Morgan Stanley Growth -12.26
ICICI Prudential Power -12.45
UTI MNC -12.7
ICICI Prudential Growth -15.42
Birla Sun Life Equity -15.47
Kotak 30 -15.75
Taurus Discovery Stock -16.14
LICMF Equity -18.15
DSPML Equity -19.25
Taurus Starshare -20.45
JM Equity -23.67
LICMF Growth -24.32
Birla Advantage -26.48
Magnum Equity -27.35
Magnum Global -28.55
ING Core Equity -29.57
Magnum Multiplier Plus -35.9
After all this loses well the story is known about the amazing bull run.So if investing in equities, it is very important to stay commited for long and go via SIP as the market may turn bullish or bearish anytime.