SIP vs Lump Sum Investment: Which is Better?

 When investing in mutual funds, you have two options: SIP or Lump Sum.

SIP

  • Invest small amounts every month

  • Reduces market timing risk

  • Ideal for beginners and disciplined investors

Lump Sum

  • Invest one large amount at once

  • Can give higher returns if market is favorable

  • Risky if market falls soon after investment

Conclusion

  • Beginners: Start with SIP for safety and habit-building

  • Experienced investors: Can combine SIP with occasional lump sum for better growth

SIP is the foundation of long-term investing.

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