Investing ₹100 daily or ₹3,000 monthly in mutual funds helps build wealth over time. A daily SIP of ₹100 generates a higher final value than a monthly SIP because it involves a slightly higher annual investment of ₹36,500. Ultimately, staying invested consistently matters more than the frequency of your payments.

Investing ₹100 every day or putting ₹3,000 into a mutual fund at the beginning of every month may appear to be the same thing. After all, ₹100 a day adds up to ₹3,000 over 30 days. But does the frequency of your investments make a difference to your final wealth over the long term?

For investors deciding between a daily and a monthly systematic investment plan (SIP), the difference may lie in the amount invested over a year and how long each instalment remains invested.

Let's look at how both investment options could grow over 5, 10 and 15 years, assuming an equity mutual fund delivers an annualised return of 12%.

How much can a ₹100 daily SIP grow in 5, 10 and 15 years?

An investor putting ₹100 into an equity mutual fund every day would invest ₹36,500 annually. Assuming a 12% annualised return, here's how the investment could grow:

How much can a ₹3,000 monthly SIP grow in 5, 10 and 15 years?

Now, consider an investor who invests ₹3,000 every month in the same category of equity mutual fund, assuming the same 12% annualised return. Here's how the investment could grow over different periods:

Which SIP creates more wealth?

The ₹100 daily SIP generates a higher estimated final value across all three investment periods.

After 5 years: The daily SIP builds ₹2.50 lakh, compared with ₹2.47 lakh through the monthly SIP -- a difference of around ₹3,000.

After 10 years: The daily SIP builds ₹7.06 lakh, compared with ₹6.97 lakh through the monthly SIP -- a difference of around ₹9,000.

After 15 years: The daily SIP builds ₹15.36 lakh, compared with ₹15.14 lakh through the monthly SIP -- a difference of around ₹22,000.

The difference is partly because the daily SIP involves a slightly higher total investment over the year, rather than investment frequency alone. A daily SIP of ₹100 for 365 days amounts to ₹36,500 annually, while a monthly SIP of ₹3,000 amounts to ₹36,000 a year. This means the daily SIP involves an additional investment of ₹500 annually. As a result, both options generate comparable wealth over the long term.

For investors, the choice between a daily and monthly SIP should ultimately depend on their cash flow, convenience, and ability to invest consistently over the long term. Regular contributions and staying invested are more important than the frequency of investments.