Daily SIP vs Monthly SIP

Compare daily SIP vs. monthly SIP investments: pros, cons, and which suits your financial goals better.
Daily SIP vs Monthly SIP
3 mins read

In the world of investment strategies, the debate between Daily Systematic Investment Plans and Monthly Systematic Investment Plans has been a hot topic. Each method offers its own set of advantages and appeals to different types of investors. Where Daily SIPs help to diversify investments but monthly SIPs offer better investment planning opportunities.

In this blog, we delve into the world of Daily SIPs and their benefits and explore why they're gaining traction in the investment landscape. Read on to know more.

What are daily SIP in mutual funds?

Daily Systematic Investment Plans (SIPs) are a smart approach to investing in mutual funds. Unlike traditional monthly SIPs, daily SIPs involve investing a certain amount of money on each business day of the month. This method offers investors the flexibility to invest according to their financial goals, providing a disciplined approach to wealth creation over the long term.

At the core of daily SIPs lies a disciplined approach to wealth creation. By investing a fixed amount daily, investors cultivate a habit of regular saving and investing, laying the foundation for long-term financial success. This systematic approach not only instils discipline but also harnesses the power of compounding to amplify returns over time.

Daily SIP investment plan

Starting a daily SIP journey is simple. With ample fund options to choose from — Nippon India Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, or any other provider — the process typically involves registering, completing KYC requirements, selecting a fund, setting up your daily SIP, linking your bank account, and authorising your investments.

Types of SIPs based on tenure

Short-term SIPs

  • Designed for brief investment options, typically a few months to a couple of years
  • Ideal for specific financial goals like vacations, car purchases, or short-term expenses

Medium-term SIPs

  • Tailored for moderate investment options, spanning two to five years
  • Balances short-term liquidity with long-term wealth accumulation
  • Suitable for funding higher education, home down payments, or steady wealth growth

Long-term SIPs

  • Geared towards extended investment horizons exceeding five years
  • Focuses on substantial wealth accumulation over time
  • Ideal for retirement savings, children's education, or creating a legacy

Flexible SIPs

  • Offers freedom to adjust investment tenures, amounts, and frequencies
  • Provides versatility and adaptability to changing financial needs
  • Suited for investors with evolving goals and circumstances

Benefits of daily SIP in mutual funds

  • Power of Compounding: Daily SIPs harness the power of compounding by allowing investors to earn returns daily. This compounding effect can significantly enhance wealth accumulation over time.
  • Convenience: Daily SIPs are appealing to individuals with irregular income streams or those seeking greater convenience in their investment approach. Investing daily becomes a seamless part of their routine, ensuring consistent wealth accumulation.
  • Daily SIPs offer unparalleled flexibility, allowing investors to start with small amounts and gradually increase their investment over time. This flexibility makes it accessible to a wide range of investors, regardless of their financial circumstances.
  • By investing daily, investors benefit from rupee cost averaging, which helps mitigate the impact of market volatility. This strategy ensures a more stable and consistent investment experience, regardless of market fluctuations.

Which one to choose: Daily SIP vs monthly SIP

When deciding between Daily SIPs and Monthly SIPs, investors should consider factors such as investment frequency, convenience, flexibility, and long-term goals. While Monthly SIPs offer simplicity and ease of management, Daily SIPs provide greater flexibility and potential for enhanced returns through daily compounding.


In the context of mutual fund investing, daily SIPs are a paradigm shift that provides investors with a flexible, practical, and disciplined method of building wealth. One day at a time, investors can accomplish their long-term financial dreams and reach their financial potential by utilising the power of rupee cost averaging and daily compounding.

The Bajaj Mutual Fund Platform features multiple tools, from a lumpsum calculator to an SIP calculator, intending to make mutual fund investment planning easier. Additionally, the platform also offers over 1,000 mutual fund products in various categories. Additionally, you may compare various options with one another using the dedicated mutual fund comparison tool to see which one best fits your needs.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Frequently asked questions

Where can I invest 100 rupees daily?
Many mutual fund platforms and apps allow investors to set up Daily SIPs with minimum investment amounts as low as 100 rupees per day. Simply choose a mutual fund scheme that aligns with your investment goals and risk profile, and set up your Daily SIP to start investing regularly with just 100 rupees a day.
What type of mutual fund to invest in daily?
For daily investments, it is recommended to opt for diversified equity funds or balanced funds with moderate risk.
What is the minimum amount for daily investment?
The minimum investment amount depends on the investor and how much money they want to invest.
Can I invest daily in sip?
Yes, you can invest daily in SIP, unlike monthly SIPs where the investment is made on a month basis.
How to invest in Daily SIP Mutual funds?
Select platform, complete KYC, choose fund, set daily amount, opt for Daily SIP, link bank, authorize transactions, and monitor investments regularly.
What is the Best Daily SIP Option in Mutual funds?
The best Daily SIP option in mutual funds is subjective to the investor and depends upon the needs & requirements of the investors.
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