Daily, monthly or weekly: Choose the right frequency for your SIP

4 mins read

Investing in mutual funds and stocks has become easier with SIP (Systematic Investment Plan), resulting in a rapid increase in mutual funds and stocks investment. The introduction of SIP as a tool to invest has infused the habit of saving and investing in a disciplined manner among investors without having to time the market.

What is SIP?

SIP or Systematic Investment Plan is a method of investing fixed amounts of money periodically instead of investing lumpsum amount at once. It is considered safer than investing in lumpsum as it staggers your investments over a period of time and uses market volatility to average out the cost of investment. To accomplish your financial goals via SIP, you need to align them with your SIP tenure, frequency, investment amount and the category of mutual funds/stocks you choose to invest in. Now let’s understand the types of SIP frequencies

Types of frequencies for an SIP


Points you must consider while selecting your SIP frequency

Be it buying a home, child’s education, retirement plans, or purchasing a car, every financial goal is unique and has different time horizons. Once you have decided what your goals are and by when you want to fulfill them, the only thing left for you to decide is the frequency at which you want to invest.

Monthly SIP, quarterly SIP, weekly SIP or daily SIP – you may be a little confused about the interval of SIPs you should opt for. You can decide it based on your income, expenses, ongoing EMIs, scheme you are investing in, financial goals, etc. However, you must ponder upon the following factors and their effect on the SIP frequency while deciding how often you want to invest in a particular SIP.

  1. Effect of volatility

Depending on the volatility of the investment avenue, you should decide on the frequency of your SIP. If the volatility of the mutual fund or stock SIP is higher, you can invest in a higher frequency SIP so as to benefit from the market volatility by averaging out your investment over a period of time and vice-e-versa. For instance – if you plan to invest ₹50,000 in lumpsum, then rather than investing a lumpsum amount, you can invest in monthly or weekly SIPs of ₹10,000 (or other shorter installment). This way, you can scatter the installment over a period of time and achieve a lower cost of investment by averaging out.

  1. Frequency of your cash inflows

If you are a salaried professional and earn income on a monthly basis, it is advisable to invest in a monthly SIP. However, if you work on a contract basis where you receive income every few months (for example – construction business, interior designing, etc.) you can choose to invest in a SIP on a quarterly basis. You can plan to invest in weekly SIPs when you earn on a fortnight or a weekly basis (for example – internship, task-completion basis, etc.)

  1. Ease in tracking installment payments

It is easier to track your incomes and expenses monthly and thus, investment can be planned better on a monthly basis. You won’t have to keep track of how much was debited throughout the month as the installment amount will be debited once every month. On the other hand, in case of daily and weekly SIPs, the number of installments is higher leading to difficulty in keeping track of all the payments.

  1. Facilitates portfolio management

In case of daily and weekly SIPs, you have to monitor your investments on a regular basis. You need to keep an eye on your cost, gains and losses which becomes a cumbersome process as the number of installments are more. However, if you invest in monthly SIPs, you don’t have to constantly monitor it, you just need to evaluate your gains on a monthly basis, making the investment process simpler.


Based on your income frequency, ease of monitoring, market volatility, expected returns and other such factors, you can make your decision of whether you should invest in monthly, weekly, quarterly or daily SIP. Apart from the frequency of SIP, you also need to find the right investment avenue and figure out the tenure to fulfill your investment goals. Now that you are aware of the key points to selecting your SIP frequency, start investing today.