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Frequency Of SIPs

The frequency of your SIP investments depends on your convenience & goals..

I plan to invest in mutual funds through SIPs but am unable to make up my mind on the frequency of SIP. Should it be monthly, quarterly or daily?
- Vivek Prakash

You should consider SIP frequency based on your convenience to invest. You should ascertain how frequently you can set aside funds for investment without pushing your finances to the edge and base your SIP investments accordingly. While there is no doubt that an SIP is the best way to invest in equity funds, there is no sound basis for saying that a particular frequency of investment is the most profitable. If you can invest comfortably every month, go for the monthly option. So, if your cash flows are such that you can invest daily; do so. SIP is based on averaging which evens out in the case of investments that run into 5-10 years and more.



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