SIP or lumpsum: Which is better?

A common dilemma among many mutual fund investors is choosing the method of putting their money.

The first option is called 'lumpsum' investment and the other one is called 'systematic investment plan', popularly known as SIP.

While investing in a mutual fund, doing SIPs is a much superior alternative to lumpsum.

Investing in Mutual Fund solves three problem big problems that people face while starting their investing journey

1. Lack of adequate investible surplus:

If you lack adequate investible surplus as of now, do not worry. With mutual funds SIP, you can start investing with as low as Rs 500 per month. And slowly but steadily, your money will start growing, leading to a bigger corpus over time.

2. Lack of discipline

Many people often struggle to stick to their investment plan, An SIP puts an end to all of this by automating the process of investing.

3. Dealing with the stock market volatility

SIPs help you stay invested through the ups and downs of the market as you get rid of the dilemma of figuring out when to invest.

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