I plan to start investing in mutual funds through SIPs and am unable to decide on the optimum frequency of installments. Should I invest monthly, quarterly or half-yearly?
– Prateek Jain
Investing through SIPs is a disciplined approach to regular investing. You should base the frequency of your SIP contributions on your convenience and cash flows. There is nothing to prove that a daily SIP is better than a monthly or otherwise. Select your SIP option based on your investment time frame and convenience to invest. For instance for a three or four year horizon, a monthly SIP is just fine.
This article was originally published on February 17, 2011.