Daily sip vs monthly sip: Many investors believe about the systematic investment plan (SIP) that if they invest daily or weekly, they can get better returns. Many investors also implement such strategies.
But, does you really get more returns than monthly SIP when you do daily or weekly SIP. Let’s know the answer to this question through study and experts.
What should be kept in mind
According to Finedge’s co-founder and COO Mayank Bhatnagar, ‘The basic mantra of making long-term wealth is what is the purpose of investment, how to do and where to do. How many times you are investing, its effect is limited. The real difference comes when you stay in investment despite the ups and downs, and focus on your goal.
Confusion of weekly sip
Weekly SIP provides more entry points to investors, which can give some relief at the time of volatility. But Mayank Bhatnagar believes that in this thinking of repeatedly investing people often forget a big focus, a structured and round-based approach.
Bhatnagar says, ‘Weekly SIP has more transactions, which can make it difficult to track. Especially, when you do not have any clear investment framework. ‘
Simple plan is better in the long term
Data also shows that plain monthly SIP plans prove more effective for long periods. For example, if an investor does a SIP of ₹ 20,000 every month for 15 years and gets a stable return, then his fund can be from ₹ 1.25 crore. This strength is not of frequency, but of discipline.
Daily SIP is also not necessary
Cleartax’s study also states that the daily SIP may improve cost average, but there is not much difference in the returns of Daily, Weekly and Monthly SIP in 5–10 years timeframe.
Bhatnagar said, ‘Frequency is just a tactical thing. The real strategy is. Sticking on the goals, making regular investment and not taking decisions in market fluctuations.
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