What is an expense ratio?

Expense ratio is the annual cost charged by mutual funds or ETFs to cover administrative costs. Every mutual fund has a different expense ratio.

What happens if a daily SIP instalment fails?

If an instalment fails due to insufficient balance or any other reason, the transaction fails to be processed. Three consecutive failures lead to the cancellation of the HDFC daily SIP.

Are HDFC Daily SIP returns taxable?

Yes, HDFC daily SIP returns are taxable as per the standard mutual fund taxation rules. However, the high frequency of transactions can lead to administrative complexities.

HDFC Daily SIP

HDFC Daily SIP lets you invest a fixed amount every day in a chosen scheme instead of once a month. This approach spreads your investment across more market days, helping average out the purchase cost over time. It suits investors who prefer frequent, small contributions and want to build a disciplined investing habit without committing large sums at once.

Best HDFC Daily SIP Plans

Fund Name	AUM	Return 3 Years	Return 5 Years	Return 10 Years	Minimum Investment	Return Since Launch
HDFC Mid Cap Fund Direct-Growth	₹100,858.31 Crs	18.33%	19.75%	17.57%	₹100	20.26%
HDFC Flexi Cap Fund Regular-Growth	₹106,495.63 Crs	15.62%	17.08%	15.2%	₹100	18.31%
HDFC Focused Fund Direct-Growth	₹27,303.27 Crs	16.2%	18.7%	14.79%	₹100	14.85%
HDFC Large & Mid Cap Fund Direct-Growth	₹29,284.71 Crs	13.74%	15.23%	14.78%	₹100	13.31%
HDFC Balanced Advantage Fund Direct-Growth	₹106,456.16 Crs	12.3%	15.04%	13.78%	₹100	14.51%
HDFC Small Cap Fund Direct-Growth	₹40,416.80 Crs	10.89%	15.64%	17.58%	₹100	18.4%
HDFC Large Cap Fund Direct-Growth	₹39,023.69 Crs	10.38%	11.69%	12.52%	₹100	13.07%

Updated as of 06 September 2026

Key Points to Remember Before Setting Up the HDFC Daily SIP.

The following points are important to remember before setting up a daily SIP.

Minimum investment: Most HDFC mutual funds allow you to invest as low as ₹100 per instalment. The same applies to HDFC daily SIP, wherein you can invest ₹100 every business day to accumulate a corpus. However, the minimum investment also depends on the asset of your choice.
Maximum tenure: The maximum tenure an SIP can be registered for is 40 years
Modification/cancellation: Note that any modification or cancellation request of an SIP becomes effective after 10 days of the submission of the request.
Cancellation due to failed instalments: For daily, weekly and monthly SIP, the SIP will be cancelled after three consecutive failed attempts at transactions.
No top-up facility: HDFC daily SIP does not offer a top-up facility to its investors.

How to Set Up HDFC Daily SIP?

There are several ways to set up an HDFC Daily SIP through various HDFC Portals. You can do the same online or offline.

Setting up HDFC Daily SIP Online
- Platform: Visit the HDFC mutual funds online website or the HDFC Online Mobile app and log in using your registered credentials. If you are a new user, register with your details.
- Set up: Choose an asset from HDFC mutual funds that aligns with your financial goals.
  - Amount: Enter your preferred investment amount
  - Frequency: Set the frequency to “daily”
  - Tenure: Specify the duration of the SIP.
- Mandate and Payment automation: In order to automate your payments for the SIP, you need a One-Time Mandate to authorise your bank account to debit money from your account.
  - Existing Mandate: If you have an existing mandate registered with your folio, your SIP will start within 10 days of application.
  - New Mandate: If you're applying for a new one-time mandate for your account, it may take 10+ days to start your SIP transactions
  - Ensure that when selecting the payment frequency for the SIP, you select “AS and when presented” as the payment frequency option.
- Verification and tracking
  - Ensure that all your KYC documents are verified.
  - Ensure that your bank account is linked to the account.
  - You can track the performance of your portfolio directly through the dashboard on the portal or the mobile app.
Setting up HDFC Daily SIP Offline
- Visit your nearest HDFC Bank and collect the specific application for the mutual fund of your choice.
- Fill the form and ensure that you select the daily frequency option to set up the SIP.
- Ensure that you are KYC compliant. Submit any required documents for verification.
- Set up a one-time mandate or a NACH(National Automated Clearing House) mandate with your bank so that the instalment amount is debited from your account automatically every day.
- Provide the bank with a cheque for the first instalment along with your bank proof.
Documents Required to Set up an HDFC Daily SIP
- Pan Card
- KYC Compliance
- Adhaar Card
- SIP Enrollment Form
- One-Time Mandate

Advantages of HDFC Daily SIP

While HDFC does not provide any extra benefits to Daily SIP holders, Daily SIP provide the following benefits to the investors.

Enhanced Rupee Cost Averaging: SIP works on the principle of Rupee Cost Averaging, where the same amount of investment buys you different units of an asset at different times, depending on the Net Asset Value of the asset. Rupee cost averaging not only reduced the average costs of the units purchased in the long run but also helps in beating inflation.
Compounding: Compounding earns you returns of previous returns earned from your principal.
Convenience: Since the Payments are automated, you do not have to monitor your transactions constantly.
Flexibility: You can pause or start your investment at any time without any penalty charges.
Accessibility: Since Daily SIPs facilitate a small investment on a regular basis, it becomes much more accessible to individuals with smaller investment funds.

How Does HDFC Daily SIP Work?

HDFC daily SIP works on the principles of compounding and rupee cost averaging. It lets you earn returns on previous returns while also beating short-term market volatility.

Example: You invest in HDFC Large and Mid Cap Fund Regular- Growth. You start a daily SIP of ₹500 and invest for 15 years at an assumed annual return rate of 12%. You will have accumulated a corpus of approximately ₹76.8 lakh by investing ₹27.38 lakh in 15 years. Note that the rate of return does not remain constant throughout the investment horizon and varies with market performance. You can use an SIP calculator to calculate your returns on your investments.

Is Daily SIP Right for You?

Whether daily SIP is right for you depends on your financial goals, risk tolerance, psychology and availability of funds.

Flow of Funds: You can invest in a daily SIP if you have a constant flow of funds, and you can match your investments with your income cycle.
Market Anxieties: You can choose a daily SIP if you constantly find yourself timing the market. A daily SIP completely eradicates the need to do so.

Conclusion

HDFC Daily SIP provides investors with the option to invest as low as ₹100 on a daily basis to grow their corpus. Despite its advantages, note that historically a monthly SIP has generated equivalent returns to a Daily SIP. Thus, you can choose to invest in an HDFC daily SIP if you can sustain a flow of funds on a daily basis. Invest in the best SIP plans aligned with your long-term financial goals.

FAQs

What is an expense ratio?

Expense ratio is the annual cost charged by mutual funds or ETFs to cover administrative costs. Every mutual fund has a different expense ratio.
What happens if a daily SIP instalment fails?

If an instalment fails due to insufficient balance or any other reason, the transaction fails to be processed. Three consecutive failures lead to the cancellation of the HDFC daily SIP.
Are HDFC Daily SIP returns taxable?

Yes, HDFC daily SIP returns are taxable as per the standard mutual fund taxation rules. However, the high frequency of transactions can lead to administrative complexities.