Which Is Better: Daily or Weekly or Monthly SIP (2024)

FAQs

Which Is Better: Daily or Weekly or Monthly SIP? ›

Studies have shown that SIP frequency, be it daily, weekly or monthly, has no major impact on returns. For instance, the difference in return between daily, weekly or monthly SIPs is negligible over time. However, you could struggle to monitor your investment if you opt for the daily SIP over the monthly SIP.

While Monthly SIPs offer simplicity and ease of management, Daily SIPs provide greater flexibility and potential for enhanced returns through daily compounding.

Typically, investors tend to align their SIP dates with their expected cash flow, so that they can stick to the plan without worrying about the available cash in their bank account. For example, a salaried person may consider starting an SIP 2-3 days after their salary credit date.

As you saw, investing once a month gets you all the goodies. Plus, most people have a monthly income cycle, so monthly SIPs perfectly gel with that frequency. So, by all means, you can go for monthly SIPs, as the above data shows that daily or weekly SIPs don't enhance your returns significantly.

You must strive to save at least 30% of your gross income or ₹60,000 every month. To calculate how much amount you should invest in SIPs, we will have to use the standard formula, which is 100 minus your age to be invested in equity through mutual funds.

SBI Technology Opportunities Fund Direct-Growth offers a 36.75% rate of returns in 3 years and a 20.84% growth rate in 5 years. An investor can start a SIP of INR 500 per month for at least 3 years to get maximum returns. The total fund size of SBI Technology Opportunities Fund Direct-Growth is INR 2861.77 crores.

The best way to decide upon the duration of your SIP is to base it according to your goal. For example, suppose you want to have an X amount of money after 20 years to fund your child's education. That means you have 20 years to let your investments grow and multiply.

Studies have shown that SIP frequency, be it daily, weekly or monthly, has no major impact on returns. The difference in returns between daily, weekly or monthly SIPs is negligible over time. However, you could struggle to monitor your investment if you opt for daily SIPs over monthly SIPs.

Which SIP is best for daily investment? ›

Monthly SIPs offer better investment planning opportunities, as you can monitor the investment in a better way. However, you could struggle to monitor investments if you put money in mutual funds through the daily SIP. Daily SIPs make it very tedious to track investments and returns.

For many people, the easiest way to step back into the market is to invest smaller amounts regularly, like once a month, every two weeks or even weekly. No matter what the markets do. People who invest regularly are more likely to have a financial plan – and stick to it.

Investment goals: Your time horizon is crucial. If you're aiming for long-term growth, a monthly DCA might suit you, allowing you to ride out short-term market fluctuations. In contrast, if you're after short-term profits, a weekly or bi-weekly DCA can help you take advantage of quicker market movements.

Which one is better between one-time investment and SIPs? The choice between a one-time investment and SIPs depends on your financial goals and preferences. SIPs offer regular, disciplined investing, while lump sum investments suit those with a lump sum amount and potentially better market timing.

A SIP is generally considered a safe way to invest in mutual funds. This is because they spread the risk over the entire investment tenure instead of concentrating it at the beginning of the investment period.

There is no specific date of the month that gives better SIP returns. So, your own convenience should be the only determining criterion. For example, if you are a salaried person and receive your monthly pay at the end of the month, then you can plan your SIP in the first week of the following month.