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- 17 Jan, 2017

SIP or Lump sum? Which one is better?

2 Answers 94 Answer this Question

Naresh Sing Rahi

15 March, 2018

The answer to this question depends from investor to investor. Depending on your risk profile, suitability, and affordability, you can make your choice between lump sum and SIP. If you have proper knowledge about the mutual fund market then you can invest through lump sum else SIP. But if you were to take my advice, then SIP being a disciplined approach will help you in reducing your risk along with providing good returns.

Prashant Tyagi

09 August, 2017

SIP- It is an abbreviation of Systematic Investment Plan that helps you to invest in the mutual fund market periodically. According to your suitability, you can decide the amount to invest in a mutual fund scheme.

Advantages of SIP-

  • Reduced Rupee Cost Averaging
  • No need of tracking the market
  • Systematic Approach

Lump Sum- In this mode of investment, the investor is required to pool the complete cash in one go. This investment is suitable for investors having surplus cash.

Advantages of Lump sum-

  • Benefits of market fluctuations.
  • Suitable for long term investment.
  • Ideal for investing big surplus cash

Both of them have their own pros & cons. Hope now you are clear about your question. According to your convenience, you can now easily choose the mode of investment.

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