I've had this conversation with at least a dozen people in the last few months. The logic always sounds the same: "If SIPs are all about rupee cost averaging, wouldn't investing more frequently capture market volatility better and give me higher returns?"
Makes sense on paper, right? So I actually dug into the data to see if it holds up. And honestly? The results were statistically insignificant, but practically eye-opening.
The 10-Year Snapshot (₹12 Lakh Total)
The total return difference is only 0.12%. This is essentially a rounding error.
Why Frequency Fails to Beat Time.
Markets don't actually swing that dramatically day-to-day or week-to-week in a way that creates meaningful averaging advantages. Over the long run, buying on "cheap" days and "expensive" days balances out.
Record-Keeping
A daily SIP creates 250+ transactions annually. Your CA will hate you, and tax season will become a nightmare.
Psychological Peace
Plan for one outflow per month. Align your wealth creation with your salary cycle and eliminate mental overhead.
"The frequency is a rounding error. The consistency and amount are what compound into real wealth."
The Real Lesson
I've seen people spend hours researching weekly vs monthly SIPs, then invest ₹2,000/month and wonder why they're not rich in 2 years. Starting today beats starting "optimally" six months from now.
The Bottom Line Strategy
- Set it, forget it, and go Monthly.
- Increase your SIP amount by ₹1,000 rather than switching frequency.
- Focus on Time in the Market above all else.