According to most financial experts, SIPs are the preferred way of investing in mutual funds. Though there are tons of articles on the internet guiding you through the journey of SIP investments, or if you should invest in mutual funds via SIP or lumpsum, there’s not much content about the periodicity of the SIP investments. This article will help you answer the question to if you should invest in SIP on a daily basis.

What is SIP?

Systematic investment plan or SIP is an investment vehicle offered to investors wherein an individual can invest a specific amount in his/her desired mutual fund at defined periodic intervals. The specified amount gets debited from the investor’s account and is credited into the fund’s account. The investor can pick specifications such as the investment amount,the frequency of the investment, and the date on which ittakes place. SIP investments aid in mitigating risks and instils disciplined investing among investors.


Following are some of the reasons why an investor can consider daily investments in mutual funds via SIP method:

Returns: If you invest when the market is surging, get ready to taste the high returns. However, there are chances of negative returns if the market is facing a fall.

Convenience: For several investors, investing in SIPs on a daily basis is more economical as compared to monthly SIPs.

Liquidity: If you invest in mutual funds with a lock-in period, your investments will be definitely locked. With SIPs in open-ended funds investor can make withdrawals as per her requirement.


The prospects of daily SIPs shouldn’t be defined based on stock indices such as Sensex and Nifty. The overall results are based on fund management. Before, you start to invest in SIPs on a daily or monthly basis, make sure to consider the credibility of the fund management and fund house strategy.

Market Conditions: The growth will be counted based on market conditions. The primary objective of daily SIPs is to strike the best investment price and to absorb the market-volatility.

Limit Losses: If the mutual funds are managed in a good way, then the gains can be maximized, and losses can be minimized.

Large-cap Funds: The volatility of large-cap funds is comparatively lesser than small-cap funds. The small-cap funds tend to react to the surge of the market sharply. Therefore, an investor can expect stable results when invested in large-cap funds through SIPs.


Investment Planning: Better investment could be planned via monthly SIPs. You can access your income or expenses in a better way; you can implement a proper investment strategy periodically.

Tedious Tracking: There will be many entries in a scheme, thus, it might get challenging to track all the mutual fund investments in a go.

Should you invest in daily SIPs?

Some investors prefer to invest a small, insignificant amount daily, and others prefer to invest on a monthly basis. In the end, you are the best person to make that decision for your investments. Irrespective of the periodicity of your SIP investments, you can use an SIP return calculator to evaluate the returns on your investments and comprehend the future value of your mutual fund investments.Almost all fund houses provide SIP calculators. You can also seek services of a mutual fund expert who can guide you through your investment journey. Happy investing!

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