Daily SIP vs Monthly SIP

SIP stands for Systematic Investment Plan. It's a method of investing money regularly over a period of time. In an SIP, an investor invests a fixed amount of money at regular intervals, such as daily, monthly or quarterly, into a selected fund scheme. The idea behind SIPs is to encourage disciplined and regular investing, regardless of market conditions. But a question arises: How often should you invest through SIPs? Should it be daily or monthly? This article will help you choose which is the best for you.

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SIP Plan Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax
Zero LTCG Tax
Disciplined & worry-free investing
Disciplined & worry free investing

Payment Mode
Invest
₹ 10,000
Invest for
AUM (Cr)

₹11,620

NAV

155.48

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.93 18.96 17.98 %

Instant tax receipt
AUM (Cr)

₹2,687

NAV

71.3

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.97 15.78 15.5 %

Instant tax receipt
AUM (Cr)

₹3,237

NAV

65.72

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.17 15.71 14.91 %

Instant tax receipt
AUM (Cr)

₹35,377

NAV

73.66

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.32 14.66 14.66 %

Instant tax receipt
AUM (Cr)

₹446

NAV

66.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.77 13.32 14.59 %

Instant tax receipt
AUM (Cr)

₹4,837

NAV

66.06

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.65 14.17 14.28 %

Instant tax receipt
AUM (Cr)

₹5,458

NAV

76.79

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.07 12.87 14.24 %

Instant tax receipt
AUM (Cr)

₹219

NAV

47.02

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.51 14.12 13.92 %

Instant tax receipt
AUM (Cr)

₹3,598

NAV

40.07

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.44 12.59 13.7 %

Instant tax receipt
AUM (Cr)

₹130

NAV

53.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.59 13.58 13.44 %

Instant tax receipt
AUM (Cr)

₹2,687

NAV

71.3

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.97 15.78 15.5 %

AUM (Cr)

₹3,237

NAV

65.72

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.17 15.71 14.91 %

AUM (Cr)

₹446

NAV

66.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.77 13.32 14.59 %

AUM (Cr)

₹4,837

NAV

66.06

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.65 14.17 14.28 %

AUM (Cr)

₹219

NAV

47.02

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.51 14.12 13.92 %

AUM (Cr)

₹3,598

NAV

40.07

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.44 12.59 13.7 %

AUM (Cr)

₹130

NAV

53.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.59 13.58 13.44 %

AUM (Cr)

₹7,314

NAV

145.07

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.77 13.03 13.28 %

AUM (Cr)

₹12,241

NAV

77.92

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.64 11.73 12.97 %

AUM (Cr)

₹2,097

NAV

62.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.97 11.2 12.5 %

AUM (Cr)

₹11,620

NAV

155.48

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.93 18.96 17.98 %

AUM (Cr)

₹35,377

NAV

73.66

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.32 14.66 14.66 %

AUM (Cr)

₹5,458

NAV

76.79

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.07 12.87 14.24 %

AUM (Cr)

₹9,938

NAV

61.83

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21 20.45 22 %

AUM (Cr)

₹12,572

NAV

110.03

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.91 20.86 18.51 %

AUM (Cr)

₹1,051

NAV

70.8

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.21 14.41 15.09 %

AUM (Cr)

₹13,553

NAV

66.87

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.43 13.15 13.47 %

AUM (Cr)

₹1,125

NAV

53.67

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.71 13.1 13.1 %

AUM (Cr)

₹3,551

NAV

57.18

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.92 12.78 12.76 %

AUM (Cr)

₹526

NAV

55.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.94 11.7 11.66 %

AUM (Cr)

₹242

NAV

27.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.49 9.38 10.43 %

AUM (Cr)

₹823

NAV

41.32

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.1 7.13 7.49 %

AUM (Cr)

₹499

NAV

38.77

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.86 7.16 7.25 %

AUM (Cr)

₹117

NAV

30.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.16 6.74 7.05 %

AUM (Cr)

₹77

NAV

41.74

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.9 6.65 7 %

AUM (Cr)

₹172

NAV

47.46

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.11 6.31 6.87 %

AUM (Cr)

₹93

NAV

39.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.81 6.75 6.85 %

AUM (Cr)

₹1,013

NAV

47.32

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.23 6.56 6.82 %

AUM (Cr)

₹16,781

NAV

50.56

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.77 6.54 6.82 %

AUM (Cr)

₹1,602

NAV

44.04

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.79 6.21 6.63 %

AUM (Cr)

₹904

NAV

97.82

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.66 15.69 15.43 %

AUM (Cr)

₹354

NAV

46.84

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.69 10.22 10.52 %

AUM (Cr)

₹5,072

NAV

38.95

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.69 9.32 10.16 %

AUM (Cr)

₹62

NAV

59.84

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.66 9.11 10.11 %

AUM (Cr)

₹460

NAV

101.52

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.45 9.26 10.06 %

AUM (Cr)

₹21,160

NAV

71.35

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.08 9.06 9.83 %

AUM (Cr)

₹807

NAV

38.93

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.43 9.64 9.83 %

AUM (Cr)

₹272

NAV

30.66

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.87 9.15 9.74 %

AUM (Cr)

₹6,860

NAV

107.55

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.73 9.34 9.71 %

AUM (Cr)

₹1,775

NAV

42.24

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.44 9.23 9.5 %

View More

How Does Daily SIP Work?

A daily SIP involves investing a small amount into your chosen fund scheme daily. This approach aims to leverage the power of rupee-cost averaging to a greater extent. Rupee-cost Averaging essentially evens out the purchase price of units by investing fixed amounts irrespective of market fluctuations. You can calculate your returns on SIP investments using the SIP calculator. An SIP calculator is a tool used to estimate the potential returns on investments made through SIPs in mutual funds or any other fund schemes. It considers factors such as the invested amount, investment duration, expected rate of return, and frequency of investments to calculate the corpus that can be accumulated over time. Users can use this calculator to plan their investment growth and set realistic financial goals.

  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 5 Years 7 Years 10 Years
Equity Pension SBI Life
Rating
11.39% 11.74%
12.66%
View Plan
Opportunities Fund HDFC Life
Rating
14.32% 14.66%
14.66%
View Plan
High Growth Fund Axis Max Life
Rating
19.91% 20.86%
18.51%
View Plan
Opportunities Fund ICICI Prudential Life
Rating
12.92% 12.78%
12.76%
View Plan
Multi Cap Fund Tata AIA Life
Rating
21% 20.45%
22%
View Plan
Accelerator Mid-Cap Fund II Bajaj Life
Rating
14.07% 12.87%
14.24%
View Plan
Multiplier Birla Sun Life
Rating
16.21% 14.84%
15.8%
View Plan
Virtue II PNB MetLife
Rating
14.17% 15.71%
14.91%
View Plan
Equity II Fund Canara HSBC Life
Rating
10.15% 9.55%
10.7%
View Plan
Blue-Chip Equity Fund Star Union Dai-ichi Life
Rating
8.88% 9.37%
10.42%
View Plan
Fund rating powered by
Last updated: Feb 2026
Compare more funds

Fund Name AUM Return 3 Years Return 5 Years Return 10 Years Minimum Investment Return Since Launch
Motilal Oswal BSE Enhanced Value Index Fund Regular - Growth ₹822.00 Crs 35.31% N/A N/A ₹500 35.07%
Bandhan Small Cap Fund Regular-Growth ₹14,062.19 Crs 29.34% 30.26% N/A ₹1,000 31.59%
Motilal Oswal Midcap Fund Regular-Growth ₹33,608.53 Crs 25.97% 33.24% 17.66% ₹500 22.31%
ICICI Prudential Infrastructure Fund-Growth ₹7,941.20 Crs 28.79% 37.23% 17.14% ₹5,000 15.97%
Canara Robeco Large Cap Fund Regular-Growth ₹16,406.92 Crs 16.08% 17.34% 13.87% ₹100 12.99%
Mirae Asset Large Cap Fund Direct- Growth ₹39,975.32 Crs 14.85% 17.48% 14.46% ₹5,000 16.26%
Kotak Midcap Fund Regular-Growth ₹57,375.20 Crs 22.42% 27.51% 18.07% ₹100 15.26%
SBI Small Cap Fund-Growth ₹35,562.96 Crs 13.89% 23.99% 18.17% ₹5,000 19.25%
SBI Gold ETF ₹8,810.86 Crs 31.81% 17.85% 15.14% ₹5,000 12.57%

Updated as of Feb 2026

Compare more funds

Buying the Dip Results in Higher ReturnsBuying the Dip Results in Higher Returns

  1. Advantages of Daily SIP Plan

    • Enhanced Rupee-Cost Averaging: Daily SIP purchases produce a more precise cost-averaging effect than monthly SIPs. By investing small amounts throughout the month, you capture market movements more frequently, potentially acquiring units at a lower average cost over time.

    • Potential for Higher Returns: Daily SIPs could lead to higher returns in a changing market due to more frequent purchases at potentially lower NAVs (Net Asset Values).

  2. Disadvantages of Daily SIP Plan

    • Increased Transaction Costs: Some fund houses might levy transaction charges for every SIP instalment. Frequent purchases through daily SIP can accumulate these charges, potentially lowering your returns.

    • Difficult to Track and Manage: Monitoring daily investments can be difficult. Keeping track of multiple transactions and managing investment statements can become overwhelming.

    • Limited Availability: Not all fund houses or investment platforms offer daily SIP options. The availability of this feature might be restricted.

SIP Calculator

I want to invest Pro Tip
Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth
/Month
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
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Total Wealth ₹1.03 Cr
View Plans
I want to save
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
  • 1
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  • 3
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
Equity Pension
12.66%
Equity Pension
Opportunities Fund
14.66%
Opportunities Fund
High Growth Fund
18.51%
High Growth Fund
Opportunities Fund
12.76%
Opportunities Fund
Multi Cap Fund
22%
Multi Cap Fund
Accelerator Mid-Cap Fund II
14.24%
Accelerator Mid-Cap Fund II
Multiplier
15.8%
Multiplier
Frontline Equity Fund
14.28%
Frontline Equity Fund
Virtue II
14.91%
Virtue II
Equity II Fund
10.7%
Equity II Fund
Blue-Chip Equity Fund
10.42%
Blue-Chip Equity Fund
Growth Opportunities Plus Fund
15.09%
Growth Opportunities Plus Fund
Equity Top 250 Fund
11.66%
Equity Top 250 Fund
Future Apex Fund
13.44%
Future Apex Fund
Pension Dynamic Equity Fund
11.43%
Pension Dynamic Equity Fund
Accelerator Fund
13.92%
Accelerator Fund

Monthly SIP Meaning

Monthly SIP is a simple and disciplined investment approach where you invest a fixed amount of money in a mutual fund or market-linked investment scheme at regular intervals, i.e. monthly. Monthly SIP strategy is used to accumulate wealth over time, especially for long-term financial goals like retirement or buying a house.

Start An Sip Today Watch Your Money Grow Start An Sip Today Watch Your Money Grow

How Does Monthly SIP Work?

Monthly SIPs are the most popular choice for investors. They involve investing a fixed amount into your chosen fund scheme on a predetermined date every month.

  1. Advantages of Monthly SIPs

    • Convenience and Simplicity: Aligns perfectly with your monthly income cycle, making budgeting and managing finances easier. Tracking monthly transactions is less time-consuming.

    • Reduced Transaction Costs: Compared to daily SIPs, monthly SIPs typically incur fewer transaction charges, maximizing your returns.

    • Discipline and Consistency: The monthly rhythm encourages a disciplined investment habit, fostering long-term wealth creation.

    • Reduced Emotional Influence: Less frequent exposure to market movements can help minimize emotional reactions and impulsive decisions.

  2. Disadvantages of Monthly SIPs

    • Less Frequent Cost Averaging: Compared to daily SIPs, monthly purchases capture market movements less frequently, potentially leading to a slightly higher average cost per unit.

    • Missed Opportunities: In a persistently rising market, monthly SIPs might miss out on some opportunities to buy units at lower NAVs compared to daily purchases.

Choosing the Right SIP Frequency

There's no one-size-fits-all answer to the daily vs. monthly SIP debate. The ideal choice depends on your individual choices and financial goals:

  • Investment Horizon: Long-term investors (10+ years) might benefit more from the discipline and consistency of monthly SIPs. The impact of cost averaging becomes less significant over longer periods.

  • Financial Discipline: If you struggle with managing finances or tracking investments, monthly SIPs offer a simpler and more manageable approach used in many best SIP plans.

  • Risk Tolerance: Daily market fluctuations might be unsettling for risk-averse investors. Monthly SIPs can help reduce emotional decision-making.

  • Investment Amount: If you're investing smaller amounts, the potential benefit of daily cost averaging might be negligible. Transaction costs associated with daily SIPs might outweigh the advantages.

Here are some additional factors to consider:

  • Income Cycle: Align your SIP frequency with your income cycle for easier budgeting and maintaining consistency.

  • Investment Platform: Choose a platform that offers the SIP frequency that best suits your needs. Some platforms might have minimum investment requirements for daily SIPs.

SIP Hub

FAQs

  • Are there any tax benefits associated with daily vs. monthly SIPs?

    No, the tax treatment of SIP investments remains the same irrespective of the chosen frequency (daily or monthly).  Equity SIPs qualify for Long-Term Capital Gains tax (LTCG) benefits if held for over one year, while debt SIPs are taxed based on the holding period as per income tax slabs.
  • Are daily SIPs riskier?

    Not necessarily. Both daily and monthly SIPs are designed to mitigate risk through rupee-cost averaging.

˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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