How a daily SIP works
With a daily SIP, a fixed amount — often from ₹100 — is invested in the fund every business day through your bank mandate, instead of once a month. Not every fund house or fund offers it; the scheme documents list the SIP frequencies allowed (daily, weekly, fortnightly, monthly, quarterly).
Daily vs monthly: does it earn more?
Both work on rupee cost averaging: a fixed amount buys more units when prices are low and fewer when high. A daily SIP spreads your buying over more dates, so your average price is smoother.
Over long periods, though, the difference in returns between daily and monthly SIPs is small — the same amount invested in the same fund for 10+ years ends up in about the same place. What matters far more is how much you invest, for how long, and whether you keep going in bad years.
| Daily SIP | Monthly SIP | |
|---|---|---|
| Purchases a year | About 245 | 12 |
| Smoothing of price | Highest | Good |
| Account statement | Very long | Simple |
| Missed debit risk | More debits to fail if balance runs low | One debit a month |
| Best for | Daily earners, those who want to invest small amounts often | Salaried people |
Who daily SIPs suit
- People with daily or irregular income — shopkeepers, gig workers — who prefer small, frequent amounts.
- Those who like to invest the day's savings rather than wait for the month.
For salaried people, a monthly SIP on the day after salary is simpler and works just as well. A weekly SIP is a middle path.
Tips
- Keep enough balance: every bounced debit can cost a bank charge.
- Tax works the same: each day's units have their own date, so with equity funds each lot completes 12 months separately.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
For general information only, not investment advice or a recommendation. Oxon Fintech is a loan facilitation platform, not a SEBI-registered investment adviser, bank or mutual fund distributor, and does not sell bonds, deposits or funds. Rates and rules are as checked on the date above; confirm with the issuer, bank or fund house before investing. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.