We recently ran some numbers against some typical “buy the dip” strategies and concluded that they do not result in any significant advantage over a daily SIP. The daily SIP base case was chosen because it is easy to compute. It was not a recommendation for investors to switch over their monthly SIPs to daily ones.
Barring a few outliers, over rolling 5-year windows, a daily SIP and a monthly SIP result in similar amounts of assets accumulated at the end.
Related links:
Systematic Buy-the-Dip, an Update
Systematic Buy-the-Dip, SMA crosses
Trading Day of Month Returns
Code is on github.