Investment Guide
SIP vs Lump Sum Investment
Should you invest monthly or as a lump sum? Compare both strategies and find what works for you.
SIP (Systematic Investment Plan)
- Invest fixed amount regularly (monthly/quarterly)
- Rupee cost averaging - buy more units when NAV is low
- No need to time the market
- Start with as low as ₹500/month
- Inculcates investment discipline
Best for: Salaried individuals, beginners, those with regular income
Lump Sum Investment
- Invest entire amount at once
- All money starts working immediately
- Better returns if timed correctly (market low)
- Good for windfalls (bonus, inheritance)
- No need for monthly tracking
Best for: Experienced investors, lump sum receipts, bullish markets
Example: ₹1.2 Lakh Investment Over 1 Year
SIP: ₹10,000/month
Units bought at different NAVs throughout the year
Estimated Value: ₹1.32 Lakh
Lump Sum: ₹1.2 Lakh
All units bought at start of year
Estimated Value: ₹1.34 Lakh*
*If invested at market low