I am planning a SIP in an equity fund, is a daily SIP better or a monthly SIP?
The frequency of your investment should be based on the frequency at which you earn, which is most often monthly
I am planning a SIP in an equity fund, is a daily SIP better or a monthly SIP?
Kunal Raman, Pune
The purpose of systematic investing is the convenience and ease of investing regularly in mutual funds than investing in lump sum. You should focus on these aspects rather than getting overly influenced by SIP frequency. The frequency of your investment should be based on the frequency at which you earn, which is most often monthly. If you are confused about the performance of a monthly SIP over a daily SIP—long term data indicates that there is very minimal difference in returns on investments done daily or through a monthly mode in the same instrument. Focus on investing regularly and with a goal than be embroiled in the frequency of investment, which is what SIPs espouse.