Daily SIP of your Mutual Fund
Labile - Mutual Fund
Now you can take a daily SIP of your Mutual Fund Investment
Indian Mutual Fund Houses have begun launching ‘Daily SIP’ plans that allow investors to invest a small sum of money every day. Right now Bharati Axa & Sahara Mutual has already launched daily SIP plans, several other top fund houses are also considering similar plans or make their existing SIP plans more flexible.
Contrary to monthly SIPs which have a date system (where fund houses set the dates for collection of SIP money through ECS route or post-date cheques), daily SIPs are more flexible as they invest directly in that particular day’s market.
This is an ideal risk0mitigation product. Daily SIPs allow investors to have a better play or control over market volatility. Bharti Axa has a daily SIP plan that starts at Rs.300 (Rs.9000 per month) while Sahara Mutual has a Rs.10 a day plan (Rs.300 per month).
Fund houses are coming out with such plans to include customers of varied backgrounds and in the process increase their retail investor cliente.
Daily SIPs – though it may look very retail or small-investor focused – could also be an HNI product. There are many high net worth individuals who use the product to make chunk investments and capture every minute levels of market volatility.
The concept of investing on a daily basis is good for people who earn daily wages. The invested fund is better utilized when it is made in small tranches through out the month.
Some experts believe that daily SIPs are not a product for the salaried class. To counter competition, a few MFs have launched monthly plans where investors can make payments throughout the month.
