A few details on the Daily Systematic Investment Plans

In response to my post about Perpetual Systematic Investment Plans (SIP), reader GKN inquired about Daily SIPs, so here is a brief post about them with whatever info I could find.

Daily SIP
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What is a Daily SIP and who offers it?

Daily SIPs are intended to be schemes like SIPs, but invest a sum daily, instead of the usual frequency. The intention is to get to the bottom of the pyramid, and you can get started with a very small amount of money.

Sahara had filed a draft prospectus with SEBI for the Sahara Daily Fund last year, but since I didn’t find this fund’s information anywhere – I think it never took off. I did read that Sahara offers daily SIPs on its debt funds, but didn’t find a lot more information on how to get into one.

I found an application form for Bharti AXA Equity Fund from 2008, which allows a daily SIP, though I don’t know if this is still applicable or not. The document for this daily SIP said that this is only available from HDFC bank, Axis Bank and Bank of Baroda.

I also came across a few articles about IDFC offering a daily SIP, but didn’t find any concrete information about that, so I don’t know whether it was just a proposed idea, or if it did really take off.

I didn’t find information on any other fund offering a daily SIP, so from what I found, it appears to me that the options for getting into a daily SIP are generally limited, and even when you find a fund that you can consider investing into, other operational factors like the banks that offer one come in the way and might restrict you further.

How does a Daily SIP measure up against a regular SIP?

So considering you find a fund that allows a daily SIP, and a bank that lets you do it – is it a good idea to get into one? Personally, I don’t see a lot of benefit coming from this, and to me it takes the concept of regular investing, and stretches it a bit too far, and adds unnecessary layers of complexities.

FinWinOnline has this post where they compare the returns of a Daily SIP to a regular one, and come at a conclusion that you were better off with the regular SIP. If you were serious about this option, then you can check out that post, and see the number crunching for yourself.

If anyone has first hand experience with daily SIPs then please do leave a comment or send me an email to share your experience.

And keep the questions and ideas for posts coming!

Photo Credit Alan Cleaver

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