Daily SIP
A Daily SIP helps you invest a small amount of money in mutual
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SIP Plan Benefits
Start SIP with as low as ₹1000
No hidden charges
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax¶
Disciplined & worry free investing
What is a Daily SIP?
A Daily SIP (Systematic Investment Plan) is a method of investing in mutual funds where money is deducted from your bank account every business day.
- You invest a fixed amount daily.
- Units are allotted based on that day’s NAV.
- It works automatically through auto-debit.
For Example, If you invest ₹100 each day when the market is open in an SIP rather than ₹3,050 once a month, the total monthly investment remains nearly the same for both monthly and daily SIP, but your entries into the market are spread across 20-22 days.
Daily SIPs are Particularly Suitable for People Who:
- Receive income frequently (like freelancers or gig workers)
- Want to reduce the impact of market volatility
- Prefer habit-based investing through small contributions
Best Daily SIP Plans
Below are the best SIP plans that can be used for daily SIPs:
Details of the Best Daily SIP Plans
Below are the details of daily SIP plans:
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ICICI Prudential India Opportunities Fund - Growth
The investment objective is to generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, government policy and/or regulatory changes, companies facing temporary unique challenges, and similar instances.
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Tata Balanced Advantage Fund Regular - Growth
This fund aims to provide capital appreciation and income distribution to investors by using equity derivatives strategies, arbitrage opportunities, and direct equity investments.
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HDFC Large and Mid Cap Fund Regular- Growth
The objective is to generate long-term capital appreciation and income by investing predominantly in equity and equity-related instruments of large-cap and mid-cap companies, using a combination of bottom-up and top-down investment strategies.
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UTI Flexi Cap Fund Regular Plan-Growth
The primary objective is long-term capital appreciation by investing predominantly in equity and equity-related securities of companies across the market capitalization spectrum, without any bias towards market cap category.
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SBI Small Cap Fund-Growth
This scheme seeks to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a diversified basket of equity stocks of small cap companies.
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Nippon India Small Cap Fund - Growth
The primary investment objective here is to generate long-term capital appreciation by investing predominantly in equity and equity-related instruments of small cap companies. The secondary objective is to generate consistent returns by investing in debt and money market securities.
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Axis Midcap Fund Regular-Growth
The objective is to achieve long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid cap companies. The fund follows a bottom-up stock picking strategy and maintains a diversified mid-cap focused portfolio.
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Aditya Birla Sun Life Liquid Fund Regular-Growth
The objective of this scheme is to provide reasonable returns at a high level of safety and liquidity through judicious investments in high-quality debt and money market instruments.
How Does Daily SIP Work?
Daily SIPs work by automatically deducting a small amount from your bank account every day. This amount is then invested in a chosen mutual fund or market-linked fund scheme. The key advantage of this approach is that it allows you to invest regularly, even if you have limited funds available.
Here’s how daily SIP works:
- Choose a market-linked fund: You select a fund scheme that aligns with your investment goals and risk tolerance.
- Set a daily investment amount: You decide how much you want to invest each day.
- Authorize bank mandate: You provide your bank details and authorize a recurring mandate for daily deductions.
- Daily investment: On each trading day, the specified amount is deducted from your account and invested in the chosen market-linked fund.
- Accumulation of units: Over time, you accumulate units of the fund, and your investment grows based on the fund's performance.
Illustration of Returns on Daily SIP in 2026
Let us say you invest in a daily SIP as per the following details:
- Daily SIP Amount: ₹100 per day
- Expected SIP Returns: 12% annual return
- Investment Period: 10 years
The SIP calculator shows the following results:
| Investment Type |
Total Invested |
Estimated Value (12% return) |
| ₹100 Daily |
₹3,65,000 approx |
₹7,05,000 |
| ₹3,050 Monthly |
₹3,66,000 |
₹6,83,309 |
*NOTE: Returns depend on market performance. Equity mutual funds have delivered 10-14% long-term average historically, but returns are not guaranteed.
What are the Benefits of Daily SIP?
Below are the benefits of daily SIP:
- Rupee Cost Averaging: The rupee cost-averaging strategy helps mitigate the impact of market volatility. You buy more units when the NAV (Net Asset Value) is low and fewer units when the NAV is high, potentially reducing the average cost of your investment over time.
- Discipline: Daily SIPs create a disciplined approach to investing by encouraging regular contributions, regardless of market conditions.
- Accessibility: With small daily investments, Daily SIPs are accessible to investors with limited funds, making it easier to start investing.
- Flexibility: You can pause or stop the investment at any time, providing flexibility in your financial planning.
- Convenience: Daily SIPs are automated, making it easy to invest without the need for constant monitoring.
- Potential for Long-Term Growth: Consistent investing over a long period can help you accumulate wealth and benefit from the power of compounding.
- Daily SIP in Bear Market: In falling markets, daily investing helps accumulate more units at lower prices.
Factors to Consider Before Starting a Daily SIP
Below are the points to consider before starting a daily SIP:
- Investment Goals: Clearly define whether your goal is short-term (like buying a house) or long-term (like retirement), and choose funds according to your risk tolerance and time horizon.
- Financial Situation: Ensure you have a stable income, an emergency fund for unexpected expenses, and minimal high-interest debt before committing to daily investments.
- Lock-in Period: Check if the mutual fund has any exit load or lock-in period so you understand when and how you can withdraw your money without penalty.
- Tax Implications: Understand how capital gains tax applies to your chosen fund type and whether you are eligible for any tax benefits under current income tax rules.
- Market Volatility: Be mentally prepared for daily market fluctuations and maintain a long-term perspective instead of reacting emotionally to short-term movements.
- Review and Rebalance: Regularly review your portfolio and rebalance it when needed to ensure your investments stay aligned with your financial goals and risk profile.
How to Start a Daily SIP?
- Choose a Platform: Select a reliable online investment platform or consult with a financial advisor.
- Select Funds: Research and choose a mutual fund or market-linked fund that aligns with your investment goals and risk tolerance.
- Set Up Automatic Contributions: Authorize your bank to deduct a fixed amount daily from your account.
- Monitor and Review: Regularly track your investment performance and make adjustments as needed.
Who Should Invest in Daily SIP?
Daily SIP is ideal for the following category of investors:
- Salaried individuals
- Young investors starting with small amounts
- People with daily cash flow income
- Investors afraid of market volatility
- Beginners who want disciplined investing
Common Myths About Daily SIP
- Myth: Daily SIP guarantees better returns.
- Myth: It is risk-free.
- Myth: It is only for small investors.
- Myth: More frequent investing always means more profit.
*Truth: Discipline and long-term investing matter more than frequency.
Smart Tips to Maximise Daily SIP Returns
- Stay invested for at least 5-10 years.
- Choose funds with consistent performance.
- Avoid stopping SIP during market fall.
- Increase amount yearly (Step-up SIP).
- Diversify across equity and hybrid funds.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
12.3%
Equity Pension
14.3%
Opportunities Fund
18.15%
High Growth Fund
12.39%
Opportunities Fund
22%
Multi Cap Fund
13.89%
Accelerator Mid-Cap Fund II
15.45%
Multiplier
13.9%
Frontline Equity Fund
14.59%
Virtue II
10.33%
Equity II Fund
10.12%
Blue-Chip Equity Fund
14.71%
Growth Opportunities Plus Fund
11.31%
Equity Top 250 Fund
13.05%
Future Apex Fund
11.07%
Pension Dynamic Equity Fund
13.55%
Accelerator Fund
Daily SIP vs Monthly SIP
A Daily SIP involves investing a fixed amount every business day. A Monthly SIP involves investing a fixed sum in a fund scheme once a month. Below is a comprehensive comparison between daily SIP vs monthly SIP:
| Aspect |
Daily SIP |
Monthly SIP |
| Frequency |
Every day |
Once a month |
| Investment Amount |
Smaller amounts daily |
Larger amounts monthly |
| Market Volatility |
Captures day-to-day fluctuations |
Captures monthly fluctuations |
| Rupee Cost Averaging |
More frequent averaging |
Less frequent averaging |
| Convenience |
Can be less convenient due to daily commitment |
More convenient, as it requires less frequent transactions |
| Discipline Required |
Higher discipline to invest daily |
Moderate discipline required |
| Impact of Market Timing |
Lower impact due to frequent investments |
Higher impact as timing affects larger sum |
| Liquidity |
Potentially more liquidity control |
Less frequent adjustments possible |
| Transaction Costs |
Higher transaction costs due to frequency |
Lower costs as fewer transactions occur |
| Suitability |
Ideal for those wanting to mitigate short-term volatility |
Suitable for investors comfortable with monthly commitments |
Conclusion
Daily SIP is a simple and disciplined way to invest small amounts regularly in mutual funds. It reduces emotional investing and spreads market risk across more days. However, returns depend on fund quality and long-term consistency. If you want steady wealth creation without worrying about timing, Daily SIP can be a practical strategy in 2026.
FAQ's
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Can I stop Daily SIP anytime?
Yes, you can cancel or modify anytime.
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Is Daily SIP available in all mutual funds?
No, availability depends on AMC.
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Does Daily SIP reduce risk?
It reduces timing risk but not market risk.
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Can I increase Daily SIP amount later?
Yes, through modification or new SIP registration.
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Are there extra charges for Daily SIP?
No additional charges for frequency.
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Is Daily SIP good for beginners?
Yes, because it builds discipline.
-
What happens if bank balance is low?
Transaction may fail and SIP could be cancelled after repeated failures.
