June 18, 2024

My Blog

My WordPress Blog

Daily SIP mutual funds: How to invest in such SIPs?

3 min read


Investing and planning for the future works the same way each drop of water adds up to a vast ocean. A small amount can make a huge difference in the long-term and that’s where SIPs come to play.

A systematic investment plan (SIP) is a methodical strategy to save money for short or long-term objectives by investing a set amount at regular intervals.

Investors can personalise how they invest money through SIPs, even though the most common SIP involves investing a set amount of money every month. Depending on their preferences, investors can invest with different fund companies on a monthly, bi-weekly, fortnightly, or daily basis.

If you prefer investing a small amount daily instead of a monthly investment, then daily investments are the best option.

What are daily SIPs?

A concept and one way to invest in mutual funds is the daily systematic investment plan (SIP). You can invest a set amount of money every day. A daily SIP allows you to follow your financial objectives and build long-term wealth by making relatively small sums of money over an extended period.

Benefits of daily SIPs

Start small

With a daily SIP, you can invest as little as Rs 100 daily and gradually increase your investment.

Daily averaging

By investing in mutual funds throughout an SIP, you can grow the number of units acquired at a reduced cost per unit by purchasing more units while the fund’s NAV is low and fewer units when the NAV rises.


You can adjust your SIPs as needed. You can also edit, pause, and then resume them. Daily SIPs would be more practical to develop an investment discipline for those who want to reach their goals sooner or want to build a comparatively larger corpus.


If you choose to invest in a growth fund, your investment will be locked. Opting for an early exit will attract an exit load. However, most SIPs permit you to withdraw partially after a predetermined time.


Your age should also be considered when choosing the fund and frequency. Your financial objectives should guide your SIP amount selection. Starting young will increase your investing potential.

Power of compounding

The power of compounding will increase the returns on your SIP investments. The difference between monthly and daily SIPs could be impactful or negligible, depending on the amount you set. Tus, you should pick the one that is best suited for your needs.

Disciplined investing

A daily SIP is taken your bank account daily so that it is debited before you begin spending. The outcome leads to adopting the idea of saving first, spending later, which fosters better discipline. In a monthly SIP, you must wait until the beginning of the month, so there is a strong likelihood that the account will not be appropriately balanced.

Disadvantages of daily SIPs

Difficulty in tracking – The mutual fund scheme will contain many investments in different asset categories and businesses. As a result, keeping track of your investments will be challenging.

Investment strategy – Every month, the investment can be planned more effectively. Regular analysis of your income and expenses will help you. You may adopt the finest investing approach using a monthly income plan. Daily SIP returns will be modest.

How to invest in a daily SIP?

Set an investment goal

Setting an investment goal is essential because each mutual fund has a distinct advantage. The aim is to select the ideal mutual fund following a plan you wish to accomplish. Not just about goal-based investing, you may periodically analyse your investment’s success and determine if you would like to continue increasing your daily SIP amount.


Choose the account through which you want to activate auto-pay after choosing your preferred mutual fund. Your bank may send a verification link in as few as 5-7 days.

Start the SIP

An auto-pay form for verification will be generated once you confirm the link. After that, you are allowed to begin your daily SIP. Remember that making small daily investments now will help you accumulate a respectable sum later.

Bottom line

Apart from deciding the frequency of your SIP, you must also pay close attention to selecting the correct mutual fund to fulfil the investing target after carefully assessing the risk tolerance. More importantly, you must also evaluate the time horizon.

Leave a Reply

Your email address will not be published. Required fields are marked *