← Investment Strategies

beginner · 5 min

SIP vs lumpsum

Which and when

SIP suits regular income and volatile or richly-valued markets - it spreads entry and reduces timing risk. Lumpsum can work better when you have a large sum and markets are reasonably valued, since money is invested (and compounding) sooner.

Many investors do both: a steady SIP, topped up with lumpsums during sharp corrections.