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?
-Rishikesh Kumar
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?
We will try to answer all questions sent to us. If the question addresses the concerns of the general audience, we’ll publish it.