Daily SIP vs Monthly SIP

Daily SIPs let you invest small amounts every market day, smoothing out cost fluctuations and building wealth steadily. Monthly SIPs, on the other hand, automate larger investments once a month—perfectly in sync with your pay cycle for hassle free budgeting and long-term growth.
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Difference Between Daily SIP and Monthly SIP
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3 mins read
13-May-2025

Do you often feel like your savings just sit there doing nothing or worse, lose value because of inflation?

If you are trying to invest smartly but find monthly commitments hard to track, you’re not alone. Many people struggle to balance savings with market volatility and financial discipline. And that’s where SIPs, especially daily SIPs, enter the picture.

Did you know: You can start SIP with Just Rs. 100!

Let us break it down simply.

What are Daily SIPs in Mutual Funds?

Think of daily SIPs like brushing your teeth — you do it every day, and over time, it makes a big difference.
A Daily Systematic Investment Plan (SIP) lets you invest small amounts in mutual funds every business day. It's different from monthly SIPs where you invest just once a month.

With daily SIPs, you’re investing bit by bit and that builds a habit. You don’t feel the pinch, but you still grow your wealth steadily. It also means you're putting your money to work every single day, letting it earn returns and build momentum thanks to the magic of compounding.

Let us say you invest Rs. 100 each business day. That may sound small, but over a year, it adds up to more than Rs. 25,000 and that is before returns!

Daily SIPs can be a game-changer for anyone who:

  • Has a slightly irregular income (freelancers, gig workers)
  • Wants to invest without waiting for a big monthly chunk
  • Prefers hands-free investing with automation

It is a simple way to build wealth without overthinking it.

By putting in just Rs. 100 every business day, you can outpace inflation and watch your savings grow consistently one small step today secures a bigger tomorrow. Start SIP with Just Rs. 100!

What is a Monthly SIP?

Now imagine you get your salary at the start of the month. You know how much you can set aside after expenses. That’s where a Monthly SIP fits in — it’s like scheduling your investments just once a month, and then letting it run on autopilot.

Monthly Systematic Investment Plans are one of the most popular ways to invest in mutual funds. You pick a fixed amount — say Rs. 2,000 — and invest it into a mutual fund on a chosen date every month.

It’s kind of like a monthly subscription — only instead of paying for streaming apps, you’re building your future wealth.

Why do people love monthly SIPs?

  • Easier budgeting: You plan your expenses and investments together.
  • Rupee cost averaging: You buy more units when markets are low and fewer when they’re high — automatically.
  • Compound growth: Over time, your money grows not just on the principal, but also on the gains you’ve earned.

Let’s say you’re saving for something big — like a down payment on a house or your child’s education. Monthly SIPs help you stay committed, one month at a time, without overwhelming your budget.

It is perfect for salaried individuals who want a predictable, low-stress investment journey.

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Difference between daily SIP and monthly SIP

Daily SIP vs Monthly SIP: What is the Difference?

There’s no one-size-fits-all answer. It really depends on you — how often you want to invest, your cash flow, and how closely you want to monitor your funds.

Here’s a sneak peek at how the two compare:

Aspect

Daily SIP

Monthly SIP

Investment Frequency

Every business day

Once a month

Investment Amount

Smaller, frequent amounts

Larger, fixed monthly amount

Rupee Cost Averaging

Very frequent averaging

Monthly averaging

Volatility Management

Helps smoothen short-term ups & downs

Less responsive to daily market changes

Compounding

Gains can start compounding faster

Grows consistently over time

Effort/Tracking

Needs automation to be hassle-free

Easier to manage manually

Behavioural Impact

Reduces temptation to time the market

Can lead to overthinking during dips


As you can see, both approaches have their strengths. It’s not about which is better, but about which one suits your lifestyle and financial habits.

Understanding how each SIP frequency smooths out market swings helps you pick the right plan for your cash flow and comfort level.

Compare Mutual Fund Options Now!

Daily SIP Investment Plan

If the idea of daily SIPs sounds interesting, you might be wondering — how do I even start?

The good news is, setting up a daily SIP is super simple and doesn’t take more than a few minutes once you're ready.

Here’s how it usually goes:

  1. Pick a mutual fund house you like — such as Nippon India Mutual Fund, SBI Mutual Fund, or HDFC Mutual Fund.
  2. Complete your KYC (Know Your Customer) — it’s a one-time process.
  3. Choose your fund and investment amount — you can start small.
  4. Set up the SIP frequency as ‘daily’ — this means it’ll auto-invest every business day.
  5. Link your bank account and authorise the mandate for smooth deductions.

Want to check how your money might grow?
Try our free Mutual Fund SIP Calculator — it helps you forecast your maturity amount clearly.

Benefits of daily SIP in mutual funds

Let’s dig into why daily SIPs are gaining attention, especially among young and flexible investors.

  1. Power of compounding
    With daily SIPs, your money doesn’t just sit there — it starts earning returns every single day.
    The earlier and more often you invest, the more your returns grow over time.
  2. Convenience for variable incomes
    Freelancer? Gig worker? Daily SIPs are perfect for you.
    You don’t need a fixed monthly surplus — just invest a little every day. It blends seamlessly into your daily routine.
  3. Built-in flexibility
    Start small. Scale up as you grow.
    You’re not locked in, and you can change the amount or pause anytime — giving you total control.
  4. Better market averaging
    By investing daily, you buy units at various price points.
    This smooths out the effect of market ups and downs, making your average buying cost more stable over time.

Benefits of monthly SIPs

Monthly SIPs have been around longer — and for good reason.
They strike the perfect balance between consistency and convenience.

  1. Disciplined saving, without thinking twice
    You don’t have to remind yourself to invest. The SIP pulls funds automatically each month, helping you stay on track.
  2. Rupee cost averaging still works
    Markets fluctuate, even within a month. A monthly SIP still lets you average out prices over time, protecting you from investing everything at a market high.
  3. Goal-based planning
    Need to save Rs. 10 lakhs in 10 years? Monthly SIPs help you work backwards from your goal, breaking it into manageable steps.
  4. Less monitoring, less stress
    For those who want to invest but not check the markets daily, monthly SIPs are a no-hassle option.
    You’re consistent without having to constantly track things.

Types of SIPs based on tenure

Did you know SIPs aren’t just about daily or monthly?
They can also be categorised based on how long you plan to stay invested.

Here are the most common types based on investment duration:

  • Short-Term SIPs (1–3 years):
    Ideal if you’re saving for a short-term goal like a vacation or an emergency fund. Just remember, equity funds may not be the best fit here — consider debt or hybrid funds.
  • Medium-Term SIPs (3–5 years):
    Perfect for goals like buying a vehicle, saving for a down payment, or building a buffer fund. You can mix equity and debt funds here for balanced risk.
  • Long-Term SIPs (5+ years):
    Think retirement, child’s education, or wealth building. This is where equity mutual funds shine thanks to their growth potential and compounding benefits.

Whatever your timeline, there’s a SIP structure built to help you reach that goal—pick the tenure that aligns with yours. Explore Top-Performing Mutual Funds!

Which is better: Daily, Weekly or Monthly SIPs?

  • Daily SIPs offer the most frequent rupee cost averaging. Ideal for volatile markets and experienced investors.
  • Weekly SIPs are a middle ground — lesser tracking than daily, but still more cost smoothing than monthly.
  • Monthly SIPs are the go-to for most salaried investors. They sync with income cycles, are easy to track, and promote consistency.

So, which one’s the best?

If you like frequent investing and tracking, go for daily or weekly.
If you prefer simplicity and automation, monthly wins.

Which type of SIP will be beneficial for you?

The best SIP isn’t the one with the fanciest features — it’s the one that matches your lifestyle, income flow, and goals.

Let us look at a few scenarios:

  • Fixed monthly salary? Monthly SIPs align with your cash flow.
  • Irregular income? Daily SIPs give you flexibility and discipline without waiting for a payday.
  • Risk averse? Weekly or monthly SIPs can smooth out volatility better than lumpsum.
  • Aggressive investor? Daily SIPs help you buy at multiple points, helping with cost averaging.

Key considerations

Before you jump into any SIP: daily, weekly, or monthly. Fere are a few things worth thinking about:

  1. Your income pattern:
    Is your income fixed or fluctuating? Salaried individuals usually prefer monthly SIPs, while freelancers or gig workers may find daily SIPs more manageable.
  2. Investment horizon:
    Long-term goals like retirement or a child’s education usually benefit more from monthly or daily SIPs with equity exposure. Short-term goals might suit weekly or even lumpsum investments in low-risk funds.
  3. Tracking & management:
    Daily SIPs require automation and regular monitoring. If you prefer less admin, monthly SIPs are simpler to manage.
  4. Risk appetite:
    Daily SIPs help deal with market volatility but require patience. If you’re uncomfortable with seeing ups and downs frequently, stick to monthly.
  5. Fund type selection:
    Some funds are better suited to specific SIP modes. For example, ELSS funds (tax-saving mutual funds) are commonly used with monthly SIPs.

Conclusion

Choosing between daily, weekly, or monthly SIPs is not about finding the ‘best’ it is about finding the one that fits your financial journey.

  • If you prefer routine and easy tracking, monthly SIPs could be your go-to.
  • If you want more flexibility and are comfortable with market fluctuations, daily SIPs might suit you better.
  • And if you want something in between, weekly SIPs offer a balanced path.

At the end of the day, what matters most is starting.

A small step today—just Rs. 100—can launch a habit that transforms your financial future. Start Investing with Just Rs. 100!

Essential tools for all mutual fund investors

Step Up SIP Calculator

ICICI SIP Calculator

Axis Bank SIP Calculator

HDFC SIP Calculator

SBI SIP Calculator

Nippon India SIP Calculator

ABSL SIP Calculator

Canara Robeco SIP Calculator

Tata SIP Calculator

BOI SIP Calculator

Motilal Oswal Mutual Fund SIP Calculator

Kotak Bank SIP Calculator

LIC SIP Calculator

Groww SIP Calculator

ITI SIP Calculator

Invesco SIP Calculator

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.
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.
Is daily SIP a good option?

Research indicates that SIP frequency (daily, weekly, or monthly) has a negligible impact on long-term returns. While there may be minor fluctuations in short-term performance, the overall difference is insignificant. However, daily SIPs can present challenges in terms of investment monitoring compared to monthly SIPs.

Is it better to invest monthly or weekly?

A year consists of 52 weeks or 12 months. Thus, investing Rs. 1,000 monthly equates to an annual investment of Rs. 12,000, while weekly contributions of Rs. 1,000 result in an annual investment of Rs. 52,000. The weekly approach offers a significant 333.33% advantage.

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