Are you staring at a bonus, wondering how to invest it? This classic dilemma pits SIP against Lumpsum. Let's find out which strategy is best for your mutual fund returns!
For most salaried individuals, SIP (Systematic Investment Plan) is a no-brainer. It aligns with monthly income, builds consistent wealth, and removes the stress of market timing.
With SIP, you invest a fixed amount regularly. When markets dip, your money buys more units; when high, fewer. This averages your purchase cost, reducing risk and boosting long-term returns.
Got a large sum (bonus, inheritance)? Lumpsum can be powerful, especially for long horizons (10+ years) or during significant market corrections. Requires conviction and risk appetite!
Why choose? Combine both! Maintain regular SIPs, then use bonuses for opportunistic lumpsums or to Step-Up your SIPs. An STP (Systematic Transfer Plan) turns a large sum into a SIP-like investment.
Use calculators to compare scenarios and visualize growth. Avoid timing the market, stopping SIPs during dips, ignoring inflation, or not increasing your SIPs over time.
Ready to decide SIP vs Lumpsum? Use our free calculators to compare scenarios, visualize growth, and maximize your returns. Visit sipplancalculator.in now!