Which Is Better: Daily or Weekly or Monthly SIP (2024)

We know that monthly SIPs are the norm. But can you get better returns by doing your SIPs weekly or even daily. Here’s the answer.

Which Is Better: Daily or Weekly or Monthly SIP (1)

If you are a mutual fund investor, you would already know about SIPs. Chances are you are doing them yourself. Over the last few years, SIPs have become the go-to option for investing in mutual funds, especially equity funds. The benefits are clear. With SIPs, you can build a large corpus with small investments. You also get to average your investment cost (an aspect called rupee cost averaging). Last but not least, you become disciplined with investing. When SIPs are also increased every year by a certain percentage, magic happens. You can make use of certain tools like SIP Return Calculators to help calculate your estimated returns on investment

A normal question that arises is if SIPs are so good, why not do more of them? The more, the merrier, isn’t it? What if you opted for weekly or even daily SIPs? Will you get better returns due to better averaging?

To find out, we looked at the returns from daily, weekly and monthly SIPs done in the NIFTY 50 TRI, NIFTY Midcap 150 TRI, and NIFTY Smallcap 250 TRI over the last 10 years. The results are summarised in the table below.

Returns of Daily vs Weekly vs Monthly SIP
SchemeDaily SIPWeekly SIPMonthly SIP
NIFTY 50 TRI12.4412.4512.44
NIFTY Midcap 150 TRI16.3516.3616.32
NIFTY Small Cap 250 TRI13.3113.3213.29

SIP done from April 1, 2013 to April 1, 2023
All Figures in %

As seen in the table, increasing the frequency of your SIPs didn’t have a material impact on the returns. In other words, a monthly SIP is enough to provide you the benefits of cost averaging.

Wait…There’s More!

Further, doing daily or weekly SIPs has its own complications. Most platforms allow you to do monthly SIPs, not daily or weekly. That means if you want to opt for the daily or weekly ones, the onus is on you to carry them out. That means remembering to do it and then finding the time to do it – every week or (gulp!) every day.

Secondly, your recordkeeping responsibilities will go up. With monthly SIPs, you will have 12 entries per year per fund if you only buy. With weekly SIPs, you will have 52 entries per year per fund. With daily SIPs…well, you got the point.

Third, taxation becomes tricky when you do daily or weekly SIPs. Each SIP is a fresh investment and has to be accounted for separately. So, daily/weekly SIPs can multiply your workload significantly, without compensating you appropriately. Of course, the fund house may provide you with a ready statement but would you be happy to receive multiple PDFs of multiple pages?

Which Is better: Daily, Weekly, or Monthly SIP?

SIPs have become synonymous with monthly investments. There is a reason for that. As you saw, investing once a month gets you all the goodies. Plus, most people have a monthly income cycle, so monthly SIPs perfectly gel with that frequency. So, by all means, you can go for monthly SIPs, as the above data shows that daily or weekly SIPs don’t enhance your returns significantly. Further, if you want to know which date of the month is best for your SIPs, then you can check our analysis on the same too.

How can you enhance your returns then if daily/weekly SIPs are not the way out? One definite way to increase the returns from your investments is to invest in a disciplined manner and avoid some of the common SIP mistakes that investors make.

Which Is Better: Daily or Weekly or Monthly SIP (2024)

FAQs

Which Is Better: Daily or Weekly or Monthly SIP? ›

Studies have shown that SIP frequency, be it daily, weekly or monthly, has no major impact on returns. For instance, the difference in return between daily, weekly or monthly SIPs is negligible over time. However, you could struggle to monitor your investment if you opt for the daily SIP over the monthly SIP.

Is daily SIP better than monthly SIP? ›

While Monthly SIPs offer simplicity and ease of management, Daily SIPs provide greater flexibility and potential for enhanced returns through daily compounding.

Which type of SIP is best? ›

Top 10 Best Mutual Funds SIP to Invest In India
  • ICICI Pru Bluechip Fund.
  • HDFC Flexi Cap Fund.
  • Nippon India Small Cap Fund.
  • HDFC Balanced Advantage Fund.
  • ICICI Prudential Equity & Debt Fund.
  • ICICI Prudential Corporate Bond Fund.
  • ICICI Prudential Short Term Fund.
  • LIC MF Gold ETF FoF.
May 2, 2024

Is it better to invest weekly or daily? ›

As you saw, investing once a month gets you all the goodies. Plus, most people have a monthly income cycle, so monthly SIPs perfectly gel with that frequency. So, by all means, you can go for monthly SIPs, as the above data shows that daily or weekly SIPs don't enhance your returns significantly.

Is it better to have multiple SIPs? ›

It is generally recommended to have a minimum of 3-5 different schemes in your SIP portfolio to achieve good diversification. You can have 3-4 equity funds from different categories like large cap, mid cap and small cap along with 1-2 debt funds based on your risk profile and investment goal.

What are the disadvantages of weekly SIP? ›

Disadvantages: Potential market timing risk: Weekly SIP's may expose investors to the risk of investing on a day when market prices are high, as they have fewer opportunities compared to daily SIP's to take advantage of market fluctuations.

Which SIP gives the highest return? ›

List of Best SIP Funds in India sorted by ET Money Ranking
  • Edelweiss Large & Mid Cap Fund. ...
  • Motilal Oswal Focused Fund. ...
  • Mirae Asset Large Cap Fund. ...
  • UTI Flexi Cap Fund. ...
  • DSP Flexi Cap Fund. ...
  • Axis Focused 25 Fund. EQUITY Focused. ...
  • Canara Robeco Emerging Equities Fund. EQUITY Large & MidCap. ...
  • Axis Bluechip Fund. EQUITY Large Cap.

Which SIP gives the highest return in 5 years? ›

Best SIP Plans for 5 Years to invest (Equity)
FundAUM (In Crs)5 Yr Return (%)
Motilal Oswal Midcap Direct Growth₹8987 Cr29.06 %
Quant Mid Cap Fund Growth Option Direct Plan₹6920 Cr35.6 %
Quant Small Cap Fund Growth Option Direct Plan₹20164 Cr40.99 %
Nippon India Small Cap Fund - Direct Plan - Growth Plan₹45749 Cr32.18 %
1 more row

Which SIP gives the highest return in 3 years? ›

Best SIP Plans in India in 2024
Returns
Fund Name3 Years5 Years
Multi Cap Growth Fund ICICI Prudential17.36%13.61%
Equity Fund SBI16.9%14.63%
Equity II Fund Canara HSBC Oriental Bank15.99%12.31%
7 more rows

Which SIP gives 30% return? ›

Quant Flexi Cap Fund, Quant Active Fund, and Quant ELSS Tax Saver Fund - a flexi cap, multi cap, and an ELSS fund from Quant Mutual Fund, offered 33.49%, 30.58%, and 34.05% respectively. HDFC Mid-Cap Opportunities Fund, the largest scheme in the mid cap category based on assets managed, offered 30.52%.

Is it better to do SIP weekly or monthly? ›

Studies have shown that SIP frequency, be it daily, weekly or monthly, has no major impact on returns. For instance, the difference in return between daily, weekly or monthly SIPs is negligible over time. However, you could struggle to monitor your investment if you opt for the daily SIP over the monthly SIP.

Is it better to invest every week or monthly? ›

If you are just starting to think about investing, monthly savings will probably be more suitable. You still need to make sure you are keeping enough cash aside, or building up an emergency fund as income allows. A budget with your income and expenditure can help identify how much you can afford to invest each month.

Is it better to invest every week or every month? ›

A year has 52 weeks and only 12 months. So if you invest monthly, you invest $12k a year. If you invest weekly, you invest $13k a year. Here the weekly approach wins clearly with a 7.89% advantage.

How many SIPs are ideal? ›

Going by this calculation, you should invest ₹42,000 or 70% of your monthly savings of ₹60000 in SIPs. To round it off, you may begin with an SIP of ₹40,000. You should divide the amount in five SIPs of ₹8,000 each.

What are the disadvantages of a SIP? ›

Disadvantages of Systematic Investment Plan
  • Market Risk:
  • Possibility of Missing Gains:
  • Over dependence on Fund Manager:
  • Limited Control:
  • Exit Load and Lock-in Periods:
  • Expense Ratios:

Do SIPs really work? ›

Part 1—— Do SIPs work? Yes, they do work. There is a term called real-returns or inflation-adjusted return (formula is your return achieved - inflation during the investment tenure). If you are positive in these terms, you are making money or creating wealth.

Which SIP is better monthly or quarterly? ›

On the whole, because SIPs should be a habit that you persist with for long periods of time, a monthly cadence is ideal and adequate for most investors. Remember - when it comes to investing, the simpler, the better.

Which is better SIP or recurring? ›

SIPs offer the potential for higher returns over the long term, while RDs provide stability and predictability for short-term goals. It is crucial to align investment choices with specific objectives to achieve financial success.

What is the best time for SIP? ›

The best date to start your SIP is now, regardless of age. SIP investments grow with time. The earlier you begin, the more significant your wealth accumulation can be. Consider initiating your SIP at the start of the month for financial discipline and the benefits of Rupee Cost Averaging.

Does the day of the monthly SIP chosen impact the returns to an investor? ›

The example showed that there was no real difference in SIP returns made on any date of the month. The SIP returns for the scheme ranged between 12.07% to 12.19%.

References

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