SIP is the recommended mode for all equity-oriented investments
24-Mar-2017 •Research Desk
For long term investment, is it better to invest through SIP or in lumpsum in a balanced fund?
For equity or balanced funds, we recommend you create an SIP spread across a certain number of months. If you have a lumpsum amount to invest, you may consider parking it in a short-term debt fund and then opting for a STP (Systematic Transfer plan) into a balanced fund. This way, you can earn a slightly better yield on your idle money till it gets invested in the balanced fund over a period of a few months. To know why you should choose SIP, read the following article.
Are SIPs always better than lump sum investments?