Got a ₹5 lakh bonus or savings? Wondering how to make it grow in 5 years? Lumpsum or SIP – which is better for you? Let's find out!
For your ₹5 lakh, you can invest it all at once (lumpsum) or spread it monthly (SIP). Both have pros & cons, especially for a 5-year goal. What's your path?
Investing ₹5 lakh as a lumpsum can capture early market growth if it surges. But if markets dip after your investment, you start in the red. Timing is key, but risky.
SIP offers rupee cost averaging, discipline, and less stress. But traditional SIPs assume future income. Calculators often show ideal returns, ignoring real market volatility & inflation.
For existing ₹5 lakh over 5 years, an STP (Systematic Transfer Plan) is often best. Park funds in debt, then transfer fixed amounts to equity monthly. Balances risk & rewards.
STP protects against volatility, gives rupee cost averaging, keeps funds earning, and instills discipline. Your ₹5 lakh works harder without needing fresh monthly contributions.
Don't just guess! Explore scenarios with a reliable SIP calculator or goal-based calculator to fit your life & aspirations. Visit sipplancalculator.in to start planning today!