Insights by Bajaj Finserv Mutual Fund

Systematic Investment Plans (SIPs) offer the investors a disciplined and structured approach to investing, enabling individuals to build wealth gradually but steadily. Here, Bajaj Finserv Mutual Fund aims to decode daily, monthly, or weekly SIP types and help investors make informed decisions to reach their financial objectives.



SIP Strategies by Bajaj Finserv Mutual Fund

What is the meaning of SIP?

A Systematic Investment Plan (SIP) is an investment strategy that allows individuals to invest a fixed amount regularly in mutual funds over a predefined period. You can invest in SIP online, and this provides the convenience of investing small amounts at regular intervals, making SIPs suitable for individuals with varying financial capabilities.

By pooling money with other investors, SIPs offer the advantage of accessing professional fund management, diversification, and better return potential compared to traditional savings avenues.

What are the types of SIPs based on tenure?

Daily SIP

A daily SIP investment involves investing a fixed amount daily. This approach is relatively less common due to the higher frequency of transactions and potential liquidity challenges associated with daily investments. Daily SIPs are typically chosen by investors with a keen eye on market volatility, seeking to take advantage of small price fluctuations. However, tracking investments and returns daily can be a challenging task.

Monthly SIP

The monthly SIP is a popular and widely adopted approach. It involves investing a fixed sum on a specific date each month. Monthly SIPs offer convenience, as individuals can align their investments with their monthly income cycles. This option is hugely popular with investors who draw a monthly salary. You can consider starting an SIP in Bajaj Finserv Flexi Cap Fund for long term wealth creation.

Weekly SIP

A weekly SIP in mutual funds entails investing a fixed amount every week. This approach strikes a balance between daily and monthly SIPs. It offers investors the opportunity to average out market volatility by spreading their investments across multiple weeks. Weekly SIPs are often favoured by individuals who seek frequent investment opportunities.

Which SIP type should you opt for?

Choosing a suitable type of SIP depends on various factors, including personal financial goals, risk appetite, investment horizon, and the availability of surplus funds.


  • Daily – While daily SIPs demand a greater commitment of time and effort, they may appeal to experienced investors or those closely monitoring market movements on daily basis.

  • Monthly – On the other hand, monthly SIPs are suitable for most individuals, providing the benefits of compounding and ease of investment. As stated earlier, most salaried individuals opt for the monthly option.

  • Weekly – Weekly SIPs offer a middle ground, striking a balance between daily and monthly investments.

What are the factors to consider before choosing SIP type?

Investment horizon: Evaluate and align your investment horizon with the chosen SIP type. Whether you dream of a big house, a comfortable retirement, or a luxurious car, setting a goal will help you choose the type of SIP. Also, identify if you need the fund in 5 years, 10 years, or 20 years. Longer investment horizons may benefit from monthly SIPs, allowing for compounding and potentially better returns. You can make use of an online SIP calculator to determine your SIP amount and investment horizon.

Risk tolerance: Consider your risk appetite and comfort level with market fluctuations. If you are a risk-averse investor, then opting for daily SIPs could prove to be bad decision. Daily SIPs require a higher tolerance for volatility, while monthly/weekly SIPs offer a more balanced approach.

Liquidity needs: Investing via SIPs in an open-ended mutual fund can provide investors an opportunity to redeem their investments partially or fully at any time, making them highly liquid. Unlike traditional investments like fixed deposits, most SIPs for open ended schemes (except ELSS) do not have a lock-in period. Hence, assess your liquidity requirements before opting for a particular SIP. Daily SIPs may pose challenges in terms of immediate access to funds, while monthly SIPs provide greater flexibility.

Financial discipline: Gauge your ability to adhere to a regular investment schedule and choose an SIP type that aligns with your habits and facilitates consistent investments.

To conclude, successful wealth creation relies on a well-thought-out investment strategy. SIP in mutual fund provides a disciplined approach to investing, allowing individuals to build wealth gradually over time. The choice between daily, monthly, or weekly SIPs depends on individual preferences, financial goals, risk tolerance, and liquidity needs. While each SIP type has its advantages, monthly SIPs strike a balance between convenience and potential returns, making them a preferred choice for most investors. Remember, regardless of the chosen SIP type, the key lies in creating a diversified portfolio. Thus, always seek the help of a financial advisor to make informed decisions regarding the portfolio.


Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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