Systematic Investment Plans (SIPs) are among the most popular ways Indian investors build wealth in mutual funds. But with new flexibility offered by platforms, a common question arises:
Is it better to invest ₹100 daily or ₹3,000 monthly in SIPs?
Let's break down the answer with facts, numbers, and practical guidance tailored for an Indian audience.
Key Comparison: Daily vs Monthly SIP
| Metric | Daily SIP (₹100) | Monthly SIP (₹3,000) | Difference |
|---|---|---|---|
| Approx. Monthly Outgo | ₹2,200 (22 trading days × ₹100) | ₹3,000 | +₹800 (higher monthly) |
| Total Invested (20 yrs) | ₹5.28 lakh | ₹7.20 lakh | +₹1.92 lakh |
| Corpus after 20 yrs* | ₹20.23 lakh | ₹27.59 lakh | +₹7.36 lakh |
| Estimated Returns | ₹14.95 lakh | ₹20.39 lakh | +₹5.44 lakh |
Assuming average mutual fund returns of 12% per annum; actual market results may vary.
Does SIP Frequency Affect Returns?
Contrary to popular belief, the frequency (daily, weekly, or monthly) has minimal impact on long-term returns. Indian market studies based on indices like Nifty 50 and Nifty Smallcap 250 (2013-2023) found differences of barely 0.01–0.03%.
What's the key takeaway?
- Daily SIP: Returns ≈ 12.44%
- Weekly SIP: Returns ≈ 12.45%
- Monthly SIP: Returns ≈ 12.44%
So, the main difference is the total amount invested, not how often you invest.
Why Monthly SIP is Preferred in India
Larger Investment Potential: ₹3,000/month is a higher commitment than ₹2,200/month via daily SIPs, compounding wealth faster over time.
Simplicity : Fewer transactions mean easier record-keeping for Indian investors, simpler tax calculations, and less hassle.
Aligned with Salaries: Most Indians get paid monthly, so matching SIPs to your salary cycle promotes consistency.
Lower Maintenance: Setting up 12 transactions per year instead of 250+ (daily SIPs) reduces paperwork and monitoring.
When Might Daily SIP Suit You?
Irregular Income: Freelancers, daily wage earners, or gig workers can invest as and when money is received.
Minimum Entry Barrier: For beginners, starting with small daily amounts builds investment discipline.
Volatile Markets: Slightly better rupee cost averaging during extremely wild market swings.
Still, for most salaried investors, these advantages are minor compared to the convenience of monthly SIPs.
The Real Success Formula in SIP Investing
Market experts agree:
Starting early, investing consistently, and staying invested through market cycles matter far more than SIP frequency.
Major influences on your ultimate wealth are:
How much you invest: Higher SIPs = bigger corpus.
How long you stay invested: More years = more compounding.
Maintaining discipline: Stay invested through market ups and downs.
Choosing the right funds: Research and select funds that match your goals.
Conclusion
For Indian investors, monthly ₹3,000 SIPs are usually superior—not because monthly beats daily, but because you’re putting more money to work and simplifying your financial life.
If ₹100 a day is all you can manage now, don't hesitate—begin today. But to build larger wealth, strive to increase your SIP amount, and prefer the monthly mode for operational ease.
Consistency and commitment—not frequency—are what make SIPs truly powerful for building wealth in India.