Daily SIP Investment Guide: Benefits, Plans & How to Start

Investing has never been more accessible, and one of the most consistent paths to wealth creation in India today is through Systematic Investment Plans (SIPs). While monthly SIPs are widely known, a newer option gaining popularity is the daily SIP investment model. It allows you to invest small amounts every day—ideal for those who want to build the investing habit gradually and benefit from market volatility.

This article explains what daily SIPs are, how they work, their pros and cons, and how they compare with traditional monthly SIPs. Whether you’re a first-time investor or someone looking for more flexibility, here’s everything you need to know.

Compounding Benefits: How Small Investments Turn into Big Returns

🧾 What is a Daily SIP?

A Daily SIP is a mode of investing in mutual funds where the investment amount is debited from your bank account every day, instead of monthly or weekly. It works on the same principle as a regular SIP—rupee cost averaging and compounding returns—but with higher frequency.

📌 According to Moneycontrol, several fund houses and platforms like Groww and Zerodha now allow investors to start daily SIPs with as little as ₹100 per day.

✅ Advantages of Daily SIPs

1. Smoother Market Entry
Investing daily means you buy fund units at different Net Asset Values (NAVs) every day. This helps average out the cost, reducing the impact of market volatility.

2. Smaller Investment Size
Not everyone can spare ₹5,000–₹10,000 in one go. But with daily SIPs, even ₹100 per day becomes feasible. This makes it perfect for beginners and young earners.

3. Improved Discipline
Since the investment happens daily, it encourages consistent investing habits and builds long-term financial discipline.

4. Potential for Better Returns
Some experts, including financial planners cited by The Financial Express, believe that frequent investments might offer slightly better returns over time due to finer cost averaging—especially in volatile markets.

Financial Planning for New Mothers in 2025: A Complete Guide to Parenthood Budgeting & Investments

🔄 Daily SIP vs Monthly SIP: Which is Better?

While monthly SIPs remain ideal for most, daily SIPs are increasingly being considered for those with unpredictable income or who want to enter the market at different levels daily.

📊 According to Live Mint, long-term monthly SIPs in equity mutual funds still show strong historical performance. However, daily SIPs offer more flexibility and could suit tech-savvy millennials or gig economy workers.

💼 Best Daily SIP Mutual Funds in India

Some popular daily SIP mutual fund options include:

• ICICI Prudential Bluechip Fund
• Nippon India Small Cap Fund
• Axis Growth Opportunities Fund
• HDFC Midcap Opportunities Fund

Platforms like Groww, Zerodha Coin, Paytm Money, and Kuvera allow easy setup for daily SIPs with minimal paperwork.

📌 Pro Tip: Always use a daily SIP calculator or a mutual fund SIP return calculator to estimate long-term growth and returns.

How to Diversify Your Investment Portfolio in 2025 with SIPs, Gold & More

💸 How to Start a Daily SIP in India

• Choose a reliable mutual fund platform (Groww, Zerodha, Paytm Money, etc.)
• Select a fund that supports daily SIP frequency
• Complete KYC (Know Your Customer)
• Set your daily amount (e.g., ₹100 per day)
• Link your bank account for auto-debit
• Track your progress via app dashboards

✅ India Today Finance reports that users with auto-debit SIPs tend to stay more consistent and see better financial outcomes over time.

💡 Expert Tips for Daily SIP Investors

• Start small but increase SIP amount annually (Step-up SIP)
• Keep investing even during market dips to maximize returns
• Prefer equity mutual funds for long-term daily SIPs
• Monitor fund performance every 6–12 months
• Use financial planning tools to stay on track

📉 Things to Watch Out For

• Transaction overload: Daily transactions could clutter your bank and fund statements.
• Fund choices: Not all mutual funds allow daily SIPs. Confirm before investing.
• Risk exposure: Daily SIPs in equity funds carry market risks. Stay informed.

🔚 Final Thoughts: Is a Daily SIP Right for You?

If you’re looking to build a habit of saving and investing daily, or if monthly lump sums are tough to manage, a daily SIP investment can be a great tool. It promotes consistency, takes advantage of market volatility, and fits easily into small daily budgets.

However, don’t forget to assess your financial goals, investment horizon, and risk appetite. Whether it’s a daily SIP or monthly SIP, the most important factor is starting early and staying consistent.

As quoted in News18, “Wealth isn’t built overnight—but a daily habit can create financial freedom.”