What Is The Best Frequency For Equity SIPs - Daily, Weekly, or Monthly? (2024)

There are diverse views regarding how to choose your frequency for an Equity SIP. Some say doing a daily or weekly Equity SIP gives better averaging, leading to better returns.

So,

Can more frequent SIPs generate better returns?

What should be the ideal frequency for a SIP?

Let’s find out…

We checked for Equity SIP returns in Nifty 50 TRI (the most commonly used large cap equity benchmark index) across different frequencies – daily, weekly, and monthly and across different time frames – last 10 years, 15 years, and 20 years.

Here is what we found…

Equity SIP Returns for various frequencies over the last 10 years…

As seen above, the SIP returns are almost similar across daily, weekly, and monthly!Let’s extend this to see how the SIP returns look over a 15-year time frame.

Equity SIP Returns for various frequencies over the last 15 years…

Similar to the conclusion we drew from the 10-year data, even over a 15-year time frame the returns are almost similar across daily, weekly, or monthly SIPs!

Let’s extend this to see how the SIP returns look over a 20-year time frame.

Equity SIP Returns for various frequencies over the last 20 years…

Yet again, the returns are almost similar! There is no significant advantage gained by doing a daily or weekly SIP.

Insight:
Over long periods of time, the frequency of your Equity SIP does not make much of a difference. Doing a daily or weekly Equity SIP does not give any significant advantage over a simple monthly Equity SIP.

So what do we suggest?

We suggest doing a monthly Equity SIP.

Why?

It is simple and easy to manage a monthly SIP. More frequent SIPs make it unnecessarily complex and also do not give any major benefit in terms of returns.

Summing it up

1. Over long periods of time, the frequency of an Equity SIP does not make any significant difference to overall returns. The returns are almost similar across all frequencies.
   
2. Contrary to popular perception, doing a daily or weekly Equity SIP does not give any significant advantage over a simple monthly Equity SIP.
   
3. That said, try to keep it simple by doing a monthly Equity SIP.

Now that the question regarding frequency is sorted, you might be thinking about which date you should choose to start your monthly Equity SIP – Read our blog to find out.

Post Views: 13,095

[fbcomments]

1. A good analysis taking into account probably the ACTUAL historical data .Useful information also and one can without any bias/ doubt can invest in monthly sip.
   Thanks a lot.

   Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to Basics