Should One Invest in a Mutual Fund – Daily SIP vs Monthly SIP?

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Daily SIP vs Monthly SIP

Systematic Investment Plan or SIP will help you invest money in a summarized manner. If you are looking to invest in mutual funds, you can pick either SIP or lumpsum. According to the financial experts, SIPs are the preferred mode to invest, reason being, they are good in absorbing market fluctuations efficiently. If you are new to the market, you can explore SIPs as they are safe to start with. Explore Gulaq for the same.  



  • Daily SIP: You’ll invest a fixed amount on an every day basis. This goes as per the convenience of the investor. 
  • Weekly SIPHere, a fixed amount will be deducted on a weekly basis. 
  • Monthly SIPMonthly SIPs are offered by many AMCs, precisely, very popular.  


As below: 

  • Returns: If you invest when the market is going upward, get ready to taste the high returns. However, there would be negative returns if the market is on the downside. 
  • Convenience: For some, investing in daily SIPs is more economical as compared to monthly SIPs. 
  • Liquidity: If you invest in a fund with a lock-in period, certainly your investment will be locked. With SIPs in open ended funds investor can make withdrawals as per her requirement 


The prospects of daily SIPs should not be defined based on stock indices such as Nifty and Sensex. The overall results are based on fund-management. Before, you start/decide to invest in daily or monthly SIPs, make sure to consider the credibility of the fund management and fund house strategy.  

  • Market ConditionsThe growth will be counted only on the market conditions. The primary objective is to strike the best investment price and to absorb the market-volatility.  
  • Limit LossesIf the funds are managed in a good way, then the gains can be maximized, and losses can be minimized. 
  • Large cap FundsThe volatility as compared to small cap funds is lesser than large cap fundThe small cap funds will react to the surge of the market sharply. Therefore, you can expect stable results when invested in large cap through SIPs.  


The difference between daily SIP and monthly SIP isn’t that much. For Example: Small and Mid-cap funds will deliver the exact results (regardless of nature). Although, you will not experience good difference between daily or monthly SIP.  

Talking about DiversificationDaily SIPs will diversify the investment. Although, you should not opt for diversifying the financial portfolio. The returns will be average if the purchase price is averaged. But, if the fund is not volatile, the returns of monthly SIPs will be high as compared to daily SIPs.  


  • Investment Planning: Better investment can be planned monthly; you can access your income/expenses in a better way; you can implement a proper investment strategy monthly.  
  • Tedious Tracking: There will be many entries in a mutual fund scheme, thus, making it difficult to track all the investments in a go.  


Some who would prefer to invest a small amount of money daily, and others opt for monthly. In the end, you are the best person to make a wise decision. Still confused? Get in touch with Gulaq for further information regarding mutual fund investments 


*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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