One of the most popular ways to invest in mutual funds today is a Systematic Investment Plan (SIP). SIP helps you build wealth through systematic investment. Its main attraction is that you can start investing from just Rs 100. Through SIP, you can decide how much you want to invest and for how long, depending on your financial goals.

SIP is a great way to achieve long-term financial goals for those who cannot afford to invest a large amount at once. But here is a common doubt; should you invest a small amount every day or a fixed amount every month? For example, many people have doubts about whether it is better to invest Rs 100 daily or Rs 3,000 monthly.

In a daily SIP, a small amount is invested in a mutual fund every working day. For example, if you invest Rs 100 every day when the market opens, and there are usually 20-22 business days in a month, then you will invest about Rs 2,200 per month. Another option is to invest Rs 3,000 on a specific date every month.

Here is how your money will grow whether you invest Rs 100 per day or Rs 3,000 per month:

When investing Rs 100 per day:

Assume that Rs 100 per day earns an average annual return of 12% for 20 years on each trading day (about Rs 2,200 per month).

Total investment: Rs 5.28 lakh

Approximate income: Rs 14.95 lakh

Total amount: Approximately Rs 20.23 lakh

When sipping Rs 3,000 per month:

Over the same period, if you invest Rs 3,000 per month, without changing the interest rate, your money will grow like this:

Total investment: Rs 7.2 lakh

Approximate income: Rs 20.39 lakh

Total amount: Rs 27.59 lakh

When comparing these two scenarios, you can see that by sipping Rs 3,000 per month, you can invest Rs 1.92 lakh more. This will help you earn an additional income of Rs 5.44 lakh compared to investing Rs 100 per day.

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