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New Delhi: There is a common belief in the world of investment. The more money is invested, the higher the returns will be. Due to this thinking, many investors are getting attracted to daily SIP nowadays. They believe that if invested every day, then every small drop in the market will be benefited and the returns will automatically improve. But does this really happen?
If the daily SIP invests 365 times a year and the monthly SIP only 12 times, then the difference must be visible. That's the logic. But when we looked at the data carefully, the results turned out to be shocking. In the long term, the results of Daily, Monthly and Quarterly SIP were almost the same. That means how long you stay in the market is more important than the frequency of investment. In this story, we will understand in detail why the frequency of SIP does not matter much and what is the best option for ordinary investors.
To understand how much difference the frequency of SIP makes, a simple experiment was conducted. Three types of SIP were compared by assuming investment in Nifty 50 over a 15-year period (from December 2010 to December 2025). Daily, Monthly and Quarterly. The most important thing to keep in mind was that the total investment amount in all three cases was kept exactly the same.
The most important thing in investing in the long term is time, not how often. All three SIPs see the same market fluctuations as bullish, downward and recovery. The real magic of compounding comes from being sustained for years, not by daily or monthly investments. The real advantage of SIP is that it creates a habit of investing. When the habit has formed, changing the frequency does not work miracles.
| Type of SIP | How often to invest | Amount invested each time | Final value after 15 years | Annualized Return (XIRR) |
|---|---|---|---|---|
| Daily SIP | 3,719 times | ₹1,000 | Around ₹1.15 crore | 13.83% |
| Monthly SIP | 181 times | ₹20,547 | Around ₹1.14 crore | 13.80% |
| Quarterly SIP | 61 times | ₹60,967 | Around ₹1.15 crore | 13.80% |
For salaried class Monthly SIP could be the best option for most investors. It is easy to manage; no hassle of money deducted on a daily basis, no pressure to raise huge sums of money like quarterly SIP. Statistics clearly state that the frequency of SIP does not make a big difference in long-term returns. The real difference is by continuing to invest, increasing SIP and not getting out of fear in the fall of the market.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
