Should We invest daily in SIP Mutual funds? 

SIP (Systematic Investment Plan) will help you invest money in a disciplined manner. If you would like to invest in mutual funds, you can choose either to invest your money in a lump sum or via an SIP. Financial experts recommend SIPs as the preferred mode of investment as they can absorb the market fluctuations very efficiently.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹ 1 Crore

    Invest 10k Per Month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Top Performing SIP's with Zero Commission
Invest ₹10k/month & Get Rs 1 Cr Tax free*
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

If you are new to the equity market, you can explore SIPs as they are a safe starting point. In an SIP, you will buy units of mutual funds at an average price. The SIP investment can be done on a monthly or quarterly basis.

Types of SIP

There are different types of SIP. Monthly or quarterly SIPs are very popular. Now, you will be able to invest in daily SIPs as well. However, you should understand the profitability and tax implications before choosing such financial products.

  • Monthly SIP - Monthly SIPs are very popular. They are offered by various fund houses.
  • Weekly SIP – A fixed sum of money will be invested on a weekly basis.
  • Daily SIP – You will invest a fixed sum of money on an everyday basis. Some people would like to invest a small amount of money on a daily basis. It can be done as per their convenience.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Daily SIP features

Instead of investing on a monthly basis, you can invest on a weekly basis or daily basis. To calculate your returns, you should use various parameters such as XIRR and CAGR.

  • Convenience - Daily SIPs are convenient for businessmen.
  • Account maintenance - You may want to use a different bank account to fund the daily SIPs so that the returns can be tracked very easily. However, it is not mandatory to use a separate bank account towards your SIP contribution.
  • Automatic deduction - It is very important to set an automatic deduction option so that the money will be deducted automatically from your savings account and the contribution will be made to the mutual fund scheme. The returns earned from the fund will be credited to the bank account automatically.
  • Dividend distribution - Even though you contribute to the SIP every day, you may not get the returns on a daily basis. The mutual fund company will distribute the profits in the form of dividends. If there are no profits, the company is not liable to declare the dividends.
  • Dividend distribution tax – The dividend will be paid by the mutual fund company after the deduction of the dividend distribution tax. If you choose a growth fund, the returns will be reinvested and the overall gains will be quite high.

Benefits of Daily SIPs

  • Returns – The daily SIPs are useful to achieve higher returns. If you invest when the market is climbing, the returns will be high. On the other hand, there may not be any returns if the market is on a downslope.
  • Liquidity – If you invest in a growth fund, the investment will be locked. The early exit will attract an exit load (i.e. a fee charged from an investor for exiting the scheme). However, most SIPs allow investors to make partial withdrawals after a certain period of time.
  • Convenience – For some customers, investing via daily SIPs is more convenient than via monthly SIPs. Hence, you can choose a mode of investing based on your convenience.


Extended Internal Rate of Return (XIRR) can be used to assess the performance of investments. If you participate in equity mutual funds through systematic investments, XIRR will deliver better returns. All the installments as well as the timing of investment will be included, while calculating XIRR.


The Compound Annual Growth Rate calculates returns based on the total investment. You will not get exact picture if the investment has been made in installments. The returns will be high when you choose a fund with a diversified portfolio. The Sensex is based on 30 stocks while the Nifty is based on 50 stocks.

You should consider a sip investment if you are looking for a flexible medium of investing that also offers liquidity and great long-term benefits.

Prospects of daily SIPs

The prospects of daily SIPs should not concluded based on stock indices such as Sensex and Nifty. The results are based on fund management. If the funds are managed efficiently, the returns can be good even if the market conditions are unfavorable. Hence, before investing in daily SIPs or weekly SIPs, you should consider the credibility of the fund house and the fund management strategy. The fund manager should play an active role by switching gears as per the market conditions.

  • Limit losses – By managing the funds well, the losses can be minimized and gains can be maximized by choosing the right stocks.
  • Market conditions – The growth of SIPs will be based on the market conditions. The primary purpose of an SIP is to absorb the market volatility and to strike the best price on the investment.
  • Large cap funds – The volatility in large cap funds will be lesser than in small cap funds. The small cap funds will react to the market surge very sharply. Hence, you can expect stable results with SIPs which invest in large caps.

Difference between daily SIPs and monthly SIPs

The difference between a monthly SIP and daily SIP isn’t much. For example, Birla Sunlife Small and Mid-cap Funds will deliver the same results regardless of the nature of investment. You will not experience much difference between daily SIP and monthly SIP.

Diversification – By going for daily SIPs, you can diversify the investment. However, you should not over diversify your financial portfolio. As the purchase price is averaged, the returns will average out as well. However, if a fund is not very volatile, the returns of monthly SIPs will be higher than daily SIPs.

Drawbacks of daily SIPs

  • Difficulty to track – There will be too many entities in the mutual fund scheme. Hence, it will be difficult to track your investments.
  • Investment Planning – The investment can be planned better on a monthly basis. You can assess your income and expenses better on a monthly basis. Hence, you can implement the best investment strategy with a monthly income plan. The returns on daily SIP will be low.

Daily SIP from popular fund houses

Daily SIPs are ideal for investors who have daily cash flows. Traders prefer daily SIPs as it enables them to invest money on daily basis. Most traders invest money in unorganized sectors.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

LIC and HDFC Securities have initiated daily SIPs to attract investors who explore the unorganized sector. The daily SIP is also useful for people who earn daily wages. They can take out a certain portion of their money and invest. If they fail to save money on a daily basis, they won’t have any savings. Hence, the daily SIP option will fulfill their needs.

Building corpus - With an SIP investment, returns begin accumulating. You can build a substantial corpus on a long-term basis. Even though the returns on daily SIPs are lower than those on other kinds of SIP, you will be benefited by building the corpus. You will be compelled to contribute money to the scheme and your saving potential will increase.

Power of compounding – The returns on your SIP investments will be enhanced by the power of compounding. As there is just a meager difference between monthly SIP and daily SIP, you should choose the SIP as per your convenience.

Age factor – The selection of fund and frequency should be based on your age as well. You should choose an SIP amount as per your financial goals. The investment potential will be higher when you start young.

Number of transactions – The number of transactions will increase from one per month to around 20 transactions per month. The cost-averaging will be low when the volatility in the fund is low. Hence, there will not be a big difference between monthly SIP and daily SIP.

Investment term – The daily SIP is ideal if you’re looking for long-term returns. The cost-averaging will be better and you can achieve high returns with daily SIP.


The returns in the equity market are in sync with Sensex and Nifty. Before investing in equity in either lump sum mode or SIP mode, you should be aware of these indices. The rate of returns is measured through various means including XIRR and CAGR. XIRR gives you better picture of returns on SIPs. There are some people who would like to invest small sum of money on daily basis instead of investing on monthly basis. So ensure that you choose a medium that works well for you.

Smart Investment Pack
100% Capital Guarantee
Average Rating
(Based on 25 Reviews)
100% Capital Guarantee
Smart Investment Pack
Sign up for newsletter
Sign up our newsletter and get email about SIP Plans.

SIP plans articles

Recent Articles
Popular Articles
HDFC SIP Calculator - Calculate returns on SIP Investments Online

15 Jul 2020

SIP is the abbreviation for a Systematic Investment Plan wherein...
Read more
SBI SIP Calculator

03 Jul 2020

Systematic Investment Plan (SIP) is the key disciplined approach...
Read more
Invest in Best SIP for 3000 per Month

20 Apr 2020

SIPs make one of the most suitable investments to start with a...
Read more
Should you choose the SIP or Lump Sum mode?

15 Apr 2020

You can invest in mutual funds in two ways- either through...
Read more
Best SIP Plan for 5 Years Investment 2021

15 Apr 2020

SIPs make a great way of investing in mutual funds. It is an...
Read more
Best SIP Plans: Top SIP Plans to Invest in India
A Systematic Investment Plan (SIP) is a process of investing in mutual funds. It is a substitute for the...
Read more
Best SIP Plan for 5 Years Investment 2021
SIPs make a great way of investing in mutual funds. It is an excellent investment method to accomplish your short...
Read more
Best SIP Plans to Invest for 6 Months
Best SIP Plans to Invest for 6 Months What is a sip? It is a method of investing in mutual funds. If you are...
Read more
SBI SIP Calculator
Systematic Investment Plan (SIP) is the key disciplined approach when it comes to investing in mutual funds. All...
Read more
Invest in Best SIP for 3000 per Month
SIPs make one of the most suitable investments to start with a small amount. And if you are looking to invest in...
Read more

Should We invest daily in SIP Mutual funds? Reviews & Ratings

4.3 / 5 (Based on 25 Reviews)
(Showing Newest 25 reviews)
Ooty, September 02, 2020
Start with minimum amount
I have recently got the SIP plan from the policybazaar and it is really easy to get the plan from the online market. Not only this you can also start from the minimum amount of Rs. 500. It is very much convenient in nature and I really love my plan. Thank you policybazaar.
Kohima, September 02, 2020
Great assistance
I have got the good amount of benefits from the policybazaar. The customer care team of policybazaar is very good and they understood my query very well. Thank you so much team for better assistance.
Yamunanagar, September 01, 2020
Long term and beneficial
It is always a preferred thing that to get the SIP plan for the longer period of time. I really like the plan as I wanted it to be invested for at-least 10-12 years so that I can get the optimum profit out of the same. Thank you policybazaar.
Bhilaad, September 01, 2020
Investment plan
I have taken the pension plan from the policybazaar and it is one of the best investment plan. It has the long term effect on the person and I can easily invest and can get the better returns in the future. Thank you policybazaar.
Islampur, May 25, 2020
Online process
The whole process of buying the policy is on online basis. It was quite easy as I searched on website and explored various plans. I found it good and bought one.
Sarsawa, May 24, 2020
I am very impressed with the services of policybazaar. They are really quick. Also, it is very convenient to buy the investment plan.
East Midnapore, May 23, 2020
Long term gains
It is the process of long term gain and to sustain our future from certain hurdles. As the things have become expensive and we should save money. So, these investments plans helps in saving money.
Hagaribommanahalli, May 22, 2020
Great support system
I love the services of policybazaar and the employees working there. It’s really nice that they gave me a lot many choices related to the investment plans. Unique way to invest.
Mansur, May 21, 2020
Choices are given
While you are planning to take the SIP from policybazaar. You can have a lot many choices to choose out of different investment plans. I got the best one and I like it.
R.g.pur, May 11, 2020
A call away
I am happy that I bought my SIP plan from policybazaar. As they are just a call away. I was having a problem with my SIP and they resolved in few minutes.
Sialhawk, May 10, 2020
I can see that SIP are flexible in nature. We can choose any kind of Mutual fund and also the amount which we have to invest. Quite simple.
Vizianagaram, May 10, 2020
Helps in financial way
It helps me in dealing with financial things. As nowadays everything has become too costly. But with the help of SIP I can manage with my finances and can save money every month for a long term investment.
Dabhoda, May 09, 2020
Good customer service
The customer service team of policybazaar is very nice. I was in a doubt before buying a SIP plan, but with the help of them I got to know about a best plan which is according to my budget.
Adimali, May 07, 2020
Best Returns
I recently purchased the SIP plan for me and for my wife. I found it totally good and apt for us. It is a long term investments with great number of benefits. Thank you team policybazaar for such nice plan.
Agalpur, April 08, 2020
One stop and best plans
I got the SIP plan with the help of policybazaar. It is one stop solution. With great returns and monthly plan I am very satisfied. If so ever I need help from the customer care team they are available to help me.
Zotlang, April 06, 2020
Great Returns
It is a great source of return. I have started doing it from last 2 years and I am feeling relaxed that after a certain age I would be having a good amount of money with better returns.
Agra, April 03, 2020
Good policy
SIP plan is quite trending and useful nowadays. It has reflected a great impact on our society. As people are more concern about future planning and saving the money. Even the SIP plans gives us good returns after a certain period of time.
Adivada, March 31, 2020
Good customer care
The customer care team is quite helpful and nice. I got full and accurate information from them. They are not so disturbing. They have a good knowledge related to the product.
Ahmedpur, March 27, 2020
Easy to get plan
It is easy to get the plan. I just visited the website of policybazaar. And I got various plans. Then I called the customer care team and they explained me about each and every plan. I chose the best one.
Ahmedpur, March 23, 2020
Good plans
I visited the website of policybazaar and found good number of plans for future savings and investments. SIP is very important for everyone who wants a good satisfaction and more savings in his or her life. I would love to recommend all these plans to my friends and family.
Jatga, January 20, 2020
Reach Your Goals
After a certain period of time you can reach your goal. I have seen that higher you invest there will be higher risk but you can earn well. But lower the investment low risk and low returns. Well, I have started with a less amount so that I can check and analyse. But gradually after sometime I will get a good amount. Thanks policybazaar.
Pathankot, January 13, 2020
Earn Money on your Investment
It is a good way to invest money and you can earn benefits and profits in your money only. A convenient way to invest and utilise your amount. Initially I found it little bit confusing but after a while everything is being okay. People who are planning in a long term investments can do such things.
Satlasana, January 08, 2020
Systematic Investment Plan
It is a good plan. My friend recommended me to get this plan so that I can invest some amount of money into this. Ultimately I will gain benefits after a certain period of time. It is a good plan by policybazaar and I would recommend to everyone.
Machantola, December 31, 2019
Systematic way for making money
I have gone through the plans of policybazaar. And found that it is a systematic way to invest and gain money. The whole process is simple and you can check on time to time basis regarding your investments.
Ara, December 26, 2019
Good Returns In Long Term
I feel that while investing into this plan I have gained knowledge regarding the same. Also, after a certain good investment I will get the good returns. Though it is long term process but surely will be good for my future. Thank you team policybazaar.
Download the Policybazaar app
to manage all your insurance needs.