Can You Invest in a Daily SIP?

With this approach, investors can contribute in small amounts. It is ideal for first-time investors who wish to start their journey without worrying about a lump-sum commitment. 

Before moving ahead, it’s worth noting that the concept of daily SIP investment is not valid in the UAE.

What is Daily SIP?

A daily SIP is an investment method. As the name suggests, you invest a fixed amount every day into a selected mutual fund. Over time, this amount grows through the power of compounding and creates wealth for you.

Although the concept of a formal daily SIP does not exist in the UAE, you can still practically follow the same method for investment in UAE.

Keep aside a small amount every day, say, AED 20. Next, accumulate it over 30 days. At the end of the month, invest the total as your monthly SIP contribution. This approach helps you in regular savings while aligning with the UAE’s monthly investment structures.

Example- 

Daily Savings- AED 20

Monthly Savings and SIP Amount- AED 600

Over 3 years, your total contribution becomes AED 21,600. Assuming an expected annual return of 8% (Reducing rate), your investment can grow to AED 24,484, giving you an estimated profit of around AED 2,884.

Why Invest in SIP Daily Investment Funds?

Here are the primary benefits of choosing daily mutual fund SIPs —-

Better Cost Averaging

As you make more frequent purchases, you average out your cost-per-unit far efficiently compared to monthly SIPs. This eventually reduces the impact of short-term market volatility.

Efficiently Manageable

It becomes easy to invest a small amount rather than commit to a larger amount. In fact, this approach is quite suitable for beginners to start investing.

Contributes to Discipline Savings 

Daily investments help you build a disciplined savings habit. It becomes a part of your routine, similar to how you track daily expenses or savings.

Ideal for Volatile Markets

Since global markets fluctuate more frequently, daily investing provides a smoother long-term experience. It spreads investments across different market conditions every month.

Perfect for UAE Residents with Irregular Cash Flow

Freelancers and small business owners may not always have a consistent monthly income. Daily SIPs provide flexibility without financial stress.

SIP Calculator

Daily SIP Calculator 

A daily SIP investment calculator helps you estimate the potential value you will receive in the future through daily investments. It does so by calculating the returns you might earn over a specific period. You simply need to enter your daily investment amount, expected rate of return, and investment tenure — the calculator shows the result. This eventually helps you select the best daily sip mutual fund. 

Note: While you won’t find daily SIP plans in the UAE, you can explore the best SIP plans in UAE for monthly investments and start investing today! Simply compare your preferred monthly plans in the quotes and select one that meets your financial requirements. 

Pros and Cons of Daily SIP Mutual Funds

Let’s understand the advantages and disadvantages of investing daily into SIPs —

What is the Difference Between Daily SIP Funds and Monthly SIPs?

Tabled below are the key distinctions between investing monthly and daily SIPs —

Frequently Asked Questions

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