Summary
Daily SIPs help investors build wealth gradually through disciplined and consistent investments across different market conditions.
Choosing a daily SIP mutual fund requires evaluating long-term returns, risk, costs and benchmark performance.
Long-term investing in a suitable fund through regular contributions can help investors achieve their financial goals.
A daily SIP is designed to put your money in a mutual fund of your choice every trading day. By spreading your investments over more entry points, it helps average your purchase cost and reduce the impact of short-term market movements. Let’s move ahead with the best daily SIP mutual funds worth tracking in 2026.
Best 10 Daily SIP Mutual Funds: Quick Comparison
There is no single best daily SIP mutual fund for every investor, as the right choice depends on factors such as risk, investment goals and fund category. Scale, consistency and cost also matter alongside returns when comparing funds.
The table below lists some of the best daily SIP mutual funds listed by their assets under management (AUM) as of 6 August 2026:
| Fund Name | Category | AUM (in ₹ cr) | 3Y CAGR (%) | 5Y CAGR (%) | Benchmark 5Y Return (%) | Expense Ratio (%) | Minimum Daily SIP (₹) | Risk |
| HDFC Flexi Cap Fund | Equity/Flexi Cap | 1,06,496 | 18.01 | 18.65 | 12.54 | 0.55 | 100 | Very High |
| HDFC Mid Cap Fund | Equity/Mid Cap | 1,00,858 | 20.58 | 20.64 | 17.93 | 0.61 | 100 | Very High |
| ICICI Prudential Large Cap Fund | Equity/Large Cap | 79,421 | 13.45 | 13.43 | 10.93 | 0.71 | 20 | Very High |
| Nippon India Small Cap Fund | Equity/Small Cap | 78,407 | 17.72 | 19.93 | 15.28 | 0.52 | 100 (min 3 months)/ 500 (min 1 month) | Very High |
| Kotak Midcap Fund | Equity/Mid Cap | 67,611 | 20.55 | 18.11 | 17.93 | 0.33 | 100 | Very High |
| Kotak Flexicap Fund | Equity/Flexi Cap | 55,850 | 13.93 | 12.34 | 12.54 | 0.52 | 100 | Very High |
| SBI Large Cap Fund | Equity/Large Cap | 55,064 | 11.09 | 11.23 | 11.04 | 0.65 | 500 | Very High |
| HDFC Small Cap Fund | Equity/Small Cap | 40,417 | 14.02 | 16.41 | 15.36 | 0.62 | 100 | Very High |
| UTI Nifty 50 Index Fund | Equity/ Index | 29,603 | 9.11 | 9.65 | 9.27 | 0.18 | 500 | Very High |
| HDFC NIFTY 50 Index Fund | Equity/ Index | 23,703 | 9.06 | 9.60 | 9.27 | 0.22 | 100 | Very High |
Note: This list is intended for informational use only and does not constitute investment advice.
The HDFC Flexi Cap Fund and Kotak Flexicap Fund use the NIFTY 500 Total Returns Index (TRI) as their benchmark. Both the HDFC Mid Cap Fund and Kotak Midcap Fund track the NIFTY Midcap 150 TRI, while the ICICI Prudential Large Cap Fund follows the NIFTY 100 TRI.
The Nippon India Small Cap Fund is benchmarked against the NIFTY Smallcap 250 TRI. SBI Large Cap Fund tracks the BSE 100 TRI, the HDFC Small Cap Fund follows the BSE 250 SmallCap TRI, and both the UTI Nifty 50 Index Fund and HDFC NIFTY 50 Index Fund use the NIFTY 50 TRI as their benchmark.
Top 10 Daily SIP Mutual Funds in India
Each fund differs in its investment approach, portfolio and long-term performance. Here is a closer look at each one:
- HDFC Flexi Cap Fund
This fund primarily invests in large cap names while retaining the freedom to allocate to mid and small caps when valuations are favourable. Its five-year return of 18.65% comfortably beats the NIFTY 500 TRI’s 12.54%, and the 0.55% expense ratio sits on the reasonable side for an actively managed flexi cap scheme. The large size of the fund can occasionally slow down how quickly it responds to new opportunities.
- HDFC Mid Cap Fund
HDFC Mid Cap Fund invests in mid-sized companies with strong long-term growth potential. It has delivered a 20.58% three-year CAGR and a 20.64% five-year CAGR, outperforming the NIFTY Midcap 150 TRI’s 17.93% five-year return. The fund has a competitive expense ratio of 0.61%, and investors can start with a daily SIP of ₹100. Like other mid cap funds, it can experience higher volatility during market corrections.
- ICICI Prudential Large Cap Fund
The fund adopts a conservative approach, sticking to the established Indian companies and delivering a 13.43% five-year return versus 10.93% for the NIFTY 100 TRI. The 0.71% expense ratio is on the higher end among the funds compared here, which slightly lowers the net advantage over its benchmark. Investors who want lower volatility within equities tend to prefer this fund for its large cap allocation.
- Nippon India Small Cap Fund
Nippon India Small Cap Fund has delivered a 17.72% CAGR over three years and 19.93% over five years, ahead of its benchmark return of 15.28%. The fund has a competitive expense ratio of 0.52% for an actively managed small cap scheme. However, small caps tend to be more volatile, requiring patience during market fluctuations.
- Kotak Midcap Fund
Kotak Midcap Fund stands out for its expense ratio of 0.33%, unusually low for an active mid cap fund, paired with a strong 20.55% three-year CAGR. Its five-year return of 18.11% is ahead of the NIFTY Midcap 150 TRI’s 17.93%. The fund has grown quickly in recent years, and how it handles that scale going forward is worth watching.
- Kotak Flexicap Fund
Kotak Flexicap Fund has delivered relatively lower returns than other funds on the list, with a five-year CAGR of 12.34% compared with the NIFTY 500 TRI’s 12.54%. The fund has a competitive expense ratio of 0.52% and maintains a diversified portfolio across large, mid and small cap stocks. It may suit investors looking for a balanced flexi cap fund rather than one focused on maximising returns.
- SBI Large Cap Fund
SBI Large Cap Fund is one of the more established large cap names in the market. Its three-year CAGR of 11.09% and five-year CAGR of 11.23% sit only marginally above the BSE 100 TRI’s 11.04%. The 0.65% expense ratio and ₹500 minimum SIP are also higher than several peers on this list. It remains a suitable choice for investors who place value in a fund’s long-standing track record.
- HDFC Small Cap Fund
The fund’s 14.02% three-year CAGR and 16.41% five-year CAGR against the BSE 250 SmallCap TRI’s 15.36% reflect its consistent performance. The expense ratio of 0.62% is close to the category average. Investors here should be comfortable with the sharper swings that come with small caps and a horizon long enough to withstand them.
- UTI Nifty 50 Index Fund
UTI Nifty 50 Index Fund tracks the NIFTY 50 Index and has delivered a five-year CAGR of 9.65%, compared with the benchmark’s 9.27%. The small difference is mainly due to tracking error and fund expenses. With an expense ratio of 0.18%, it is among the lowest-cost funds on this list. It is suitable for investors looking for broad market exposure through a passive investment approach.
- HDFC NIFTY 50 Index Fund
HDFC NIFTY 50 Index Fund has delivered a five-year CAGR of 9.60%, closely matching the NIFTY 50 TRI’s return of 9.27%. Its 0.22% expense ratio and ₹100 minimum SIP make it easy to get started. The fund appeals to investors seeking a simple way to participate in the performance of India’s leading listed companies.
How We Selected These Daily SIP Funds
The mutual funds on this list were selected using a defined set of evaluation criteria:
- Asset size and stability
Funds with a larger and more stable AUM base tend to manage inflows and redemptions more smoothly, which matters for an ongoing daily contribution.
- Historical performance across cycles
Three-year and five-year CAGR figures were reviewed to identify funds that have delivered consistent long-term performance.
- Cost efficiency
Expense ratio directly eats into compounding over time, so funds with reasonable costs relative to their category were favoured.
- Benchmark comparison
Each fund’s return was measured against its own declared benchmark for better estimation of its returns.
- Minimum SIP accessibility
Funds allowing a low minimum SIP amount were preferred, since daily investing works best when the per-day outlay stays small and manageable.
Daily SIP Funds vs Other Fund Categories
Daily SIP is not a fund category of its own but simply a frequency of investing, one you can apply to different fund categories. The real decision is not which fund suits a daily SIP, but which frequency suits your income pattern and temperament best.
| Parameter | Daily SIP | Weekly SIP | Monthly SIP |
| Purchase frequency | Every trading day | Once a week | Once a month |
| Cash flow suitability | Best for daily or frequent income | Suits weekly earners | Suits salaried income |
| Tracking effort | Marginally higher | Balanced | Easiest to monitor |
| Cost averaging | Highest, spread across more price points | Moderate | Lower, fewer entry points |
- Purchase frequency: Daily SIPs invest every trading day, weekly SIPs invest once a week, while monthly SIPs invest once a month.
- Cash flow suitability: Daily SIPs suit investors with frequent income, weekly SIPs work well for weekly earners, while monthly SIPs are suitable for those with a monthly salary.
- Tracking effort: Monitoring a daily SIP involves more transactions, while weekly SIPs reduce the number of entries to track. A monthly SIP is the simplest to manage because only one investment is made each month.
- Cost averaging: Daily SIPs spread investments across the most trading days, weekly SIPs provide moderate cost averaging, while monthly SIPs spread investments across fewer dates.
Benefits and Risks of Daily SIP Mutual Funds
Daily SIPs encourage disciplined investing and make it easier to invest regularly.
- Better cost averaging: Investing every trading day spreads purchases across different market levels, helping average the purchase cost over time.
- Disciplined investing: Automatic daily investments reduce the chances of missing or delaying contributions.
- Easy to get started: Many funds allow small SIP amounts, making it easier to begin investing.
Like any market-linked investment, daily SIPs also come with certain risks.
- Market volatility: Returns depend on how the underlying investments perform.
- Transaction visibility: Daily SIPs create more entries in your bank statement than monthly SIPs, making them slightly harder to track.
- No guarantee of outperformance: A higher frequency of investing does not assure better returns than a monthly plan over the long run.
Who Should Consider and Avoid Daily SIP Funds?
Frequency of investing is a personal fit question as much as a financial one, and it helps to be honest about your own habits before committing.
Daily SIPs may suit:
- Investors seeking disciplined investing habits.
- First-time equity investors.
- Long-term wealth creators.
- Investors comfortable with market-linked returns.
They should be avoided by:
- Investors seeking guaranteed returns.
- Individuals with very short investment horizons.
- Investors not comfortable with market volatility.
- People without an emergency fund.
How to Choose a Daily SIP Mutual Fund
Picking the right fund involves working through a few practical checks:
- Review long-term returns: Look at three- and five-year return figures rather than short-term performance, which can be misleading.
- Compare against the benchmark: A fund is only doing its job if it consistently beats its declared benchmark over meaningful periods.
- Check the expense ratio: Lower costs compound into a meaningful difference over a long investment horizon.
- Assessing the fund manager’s track record: Review the fund manager’s experience, investment approach and long-term results.
- Examine the portfolio composition: Check the fund’s sector and stock allocation to understand how it may perform under different market conditions.
- Match the fund to your risk appetite: Every mutual fund has a different level of risk. Choose a fund that suits your comfort with market fluctuations.
SIP vs Lump Sum for Daily SIP Funds
A Systematic Investment Plan (SIP) spreads investments across regular instalments, reducing the need to time the market while encouraging disciplined investing. It suits investors who prefer building wealth gradually instead of investing a large amount at once.
A lump sum investment puts the entire amount to work immediately. While it allows your money to start compounding from day one, it requires a larger upfront investment and carries the risk of investing just before a market decline.
Since the focus here is on daily SIPs, the discussion stays with the SIP route rather than lump sum investing.
Direct vs Regular Daily SIP Funds
The plan you choose changes what you pay and who you deal with, even though the underlying portfolio stays identical.
A direct plan is purchased directly from the Asset Management Company (AMC), so the expense ratio is usually lower as there is no distributor commission. It is suitable for investors who are comfortable researching and managing their own investments.
A regular plan is offered through distributors and financial advisors. Since it includes their service charges, the expense ratio is slightly higher. It can be a good option for investors who want help with choosing and managing their investments.
Taxation of Daily SIP Mutual Funds
All the funds covered here are equity-oriented schemes. Their taxation is as follows:
- Units held for more than 12 months qualify for long-term capital gains (LTCG). Gains above ₹1.25 lakh in a financial year are taxed at 12.5%.
- Units held for 12 months or less attract short-term capital gains (STCG) tax at 20%.
Since each SIP instalment is treated as a separate investment for tax purposes, the holding period for every instalment is calculated individually from its own purchase date.
Final Thoughts
Daily SIP mutual funds make it easier to invest regularly while reducing the need to time the market. However, choosing the right mutual fund is far more important than the SIP frequency.
Select a fund that matches your financial goals, investment horizon and risk appetite. Staying invested through market cycles is often more rewarding than trying to time every market movement.
FAQs
As of 6 August 2026, some of the largest and well-performing funds that support daily SIP investments include HDFC Flexi Cap Fund, HDFC Mid Cap Fund, ICICI Prudential Large Cap Fund, Nippon India Small Cap Fund and Kotak Midcap Fund.
Daily SIPs work well for disciplined, long-term investors regardless of market timing, since the approach relies on consistency rather than predicting market movements.
There is no single best fund for every investor. The right choice depends on your investment objective, risk tolerance and preferred fund category.
Compare long-term returns against the benchmark, check the expense ratio, review the fund manager’s track record and match the risk level to your own comfort.
Daily SIPs are suitable for investors looking to build wealth gradually through disciplined, regular investments over the long term.
One-year performance changes frequently with market conditions. Investors should review the latest fund factsheets before making investment decisions.
No. Daily SIPs invest in market-linked mutual funds, so returns are not guaranteed. They help reduce timing risk but cannot eliminate market risk.
Many investors prefer starting a SIP as soon as they have a financial goal instead of waiting for the perfect time. Staying invested consistently is often more important than timing the market.
They serve different purposes. Fixed deposits offer relatively stable and predictable returns, while equity mutual funds have higher return potential but are subject to market risk.
