Which Is Better: Daily or Weekly or Monthly SIP (2024)

FAQs

Which Is Better: Daily or Weekly or Monthly SIP? ›

Studies have shown that SIP frequency, be it daily, weekly or monthly, has no major impact on returns. The difference in returns between daily, weekly or monthly SIPs is negligible over time. However, you could struggle to monitor your investment if you opt for daily SIPs over monthly SIPs.

Daily SIPs can limit the losses as the investment is made in granular portions; however, as the risk is minimised, the returns are lower than the return offered by monthly SIPs. Daily SIPs are better for individuals who are into business or any profession that earns daily wages.

But, if you invest the same amount of money in a year, there is no difference if you invest $250 a week or $1084 a month.

Perpetual SIP is one of the best options available in the systematic investment spectrum as it is linked to every SIP investor. When you start a SIP, the SIP mandate requires you to mention the start and end date for the same.

Time horizon: For long-term, SIP is a good option, as it allows you to benefit from cost averaging. If you are investing for the short term, the lumpsum investment may be more suitable. Risk tolerance: For risk-averse investors, SIP may be a better option, as it helps you average out market fluctuations.

How much should I invest every month in a systematic investment plan (SIP)? You must strive to save at least 30% of your gross income or ₹60,000 every month.

SIP investments provide a safe and effective way to build wealth, save taxes, and achieve long-term financial goals. Remember, the key lies in making informed decisions and staying consistent with your strategy.

To make $1,000 per month on T-bills, you would need to invest $240,000 at a 5% rate. This is a solid return — and probably one of the safest investments available today. But do you have $240,000 sitting around? That's the hard part.

Some experts recommend withdrawing 4% each year from your retirement accounts. To generate $500 a month, you might need to build your investments to $150,000. Taking out 4% each year would amount to $6,000, which comes to $500 a month.

“It's $2,600 a year, but when you start adding in interest, it grows very quickly.” For example, the Consumer Federation of America calculated that if you saved $50 per week every week for 40 years, you'd have $332,020 even if you invested it at a conservative rate of only 5 percent per year.

Which SIP gives 30% return? ›

HDFC Mid-Cap Opportunities Fund, the largest scheme in the mid cap category based on assets managed, offered 30.52%. SBI Contra Fund, the only contra fund in the list, offered 32.21% in five years. A monthly SIP investment of Rs 10,000 in these 23 equity schemes would have grown to Rs 12.49-17.94 lakh.

There is no specific date of the month that gives better SIP returns. So, your own convenience should be the only determining criterion. For example, if you are a salaried person and receive your monthly pay at the end of the month, then you can plan your SIP in the first week of the following month.

Therefore, the most recommended period for SIP investment is monthly. While deciding to choose a SIP investment option, it is also crucial to keep risk part in mind and not only the cash flow part.

If you want to make money through SIP, then the long-term strategy is the best way. A good strategy is to save at least Rs 100 a day from your daily expenses and invest it in mutual funds through SIP.

There is no specific date of the month that gives better SIP returns. So, your own convenience should be the only determining criterion. For example, if you are a salaried person and receive your monthly pay at the end of the month, then you can plan your SIP in the first week of the following month.

The date of the SIP or the frequency (weekly, monthly) doesn't matter. Don't waste your time picking the best day or frequency. That's like using a kundli to make your investments.