Daily SIP: SIP is the short form for Systematic Investment Plan, which is the most popular and easy way to earn big profits in the long term. But many people believe that only by investing a large amount every month in SIP can lead to big earnings. If people think like this, it could be a mistake. With a daily SIP of just Rs. 10, which is equivalent to the price of two cups of tea, one can earn lakhs in the long term. Let’s understand what Neilesh D Naik, the Head of Investment Products at Share Market (PhonePe Wealth), had to say about this small daily SIP.
Question: How did the idea of starting a daily SIP with a small amount of Rs. 10 come about and how much benefit will it bring to first-time investors?
Neilesh D Naik: The daily SIP was launched with the aim of bringing small and new investors into the mutual fund ecosystem. Over time, we realized that there is a large population in India associated with self-employment, whose cash flow is daily and they prefer to regularly save small amounts rather than invest a large sum. The daily SIP is tailored to their income pattern, making the investment process easier. Additionally, a small amount of Rs. 10 makes it affordable for everyone. This reduces hesitation for first-time investors, lowers the entry barrier, and helps in developing a disciplined habit of long-term investment.
Question: How is the Rs. 10 daily SIP model different from monthly or quarterly SIP in terms of rupee-cost averaging and long-term wealth creation?
Neilesh D Naik: Daily, monthly, and quarterly SIPs all work on the same basic principle, which is that regular investing helps in wealth creation and reduces the impact of market volatility over time. The Rs. 10 daily SIP does not change this main benefit, but it provides more convenience and accessibility for investors. Investing small amounts daily is the easiest way to balance the market’s ups and downs. It fits easily into your daily cash flow and allows investors to choose the frequency based on their income pattern and convenience.
Question: What behavioral and economic factors are driving the popularity of small investments in India?
Neilesh D Naik: For most self-employed individuals whose cash flow is irregular, saving small amounts regularly and investing becomes easier than contributing a large sum or fixed monthly contribution. Investing just Rs. 10 daily feels light on the pocket, and it reduces the pressure of making big investments.
If we look at it practically, investing small amounts daily eliminates the fear of investing. Especially for those who are investing for the first time. Due to the small amount, market volatility does not seem intimidating, reducing anxiety. This approach makes you gradually disciplined and builds your confidence. Then investing becomes not a difficult task, but a daily habit.
Question: How is the Rs. 10 daily SIP feature designed for users? How will those with irregular income invest from their savings?
Neilesh D Naik: The daily SIP is designed keeping in mind investors who have daily cash flow. To make investment easy and automatic, investors can set up SIP through UPI AutoPay, allowing them to invest small amounts without any manual effort from their daily savings. Investors can set up SIP through UPI AutoPay, making it easy and automatic to invest without any manual effort, allowing them to invest small amounts from their daily savings.
This feature also provides flexibility to increase or decrease their contribution based on their cash flow and financial convenience. They can choose from a selected range of mutual funds, including equity, gold, and multi-asset funds, based on their goals and risk-taking capacity. The most important thing is that investors can easily pause or stop their SIP when needed without any penalty and restart whenever they are ready.
Question: What strategy is behind providing options like equity, gold, and multi-asset funds under this feature?
Neilesh D Naik: The strategy behind offering equity, gold, and multi-asset funds is to cater to the needs of investors with different risk profiles and investment horizons. Not all investors are comfortable taking the same level of risk. Especially, for first-time investors. Those more willing to take risks and have a long-term perspective can choose equity funds for potential growth, while more cautious investors may prefer multi-asset funds, which provide diversification in asset classes.