SIP vs Lump Sum Investment
Compare Systematic Investment Plan (SIP) with lump sum investing.
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SIP
Invest a fixed amount regularly (monthly) in mutual funds. Averages out market fluctuations through rupee cost averaging.
Lump Sum
Invest a large amount at once. Potentially higher returns if market timing is good, but higher risk.
Comparison
SIP: Lower risk, disciplined investing, no market timing needed
Lump Sum: Potentially higher returns, requires market knowledge, higher risk
Which is Better?
SIP is generally better for most investors as it removes emotion and timing from investing.