What is the best way to invest in a balanced fund: SIP or lumpsum? | Value Research SIP is the recommended mode for all equity-oriented investments

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What is the best way to invest in a balanced fund: SIP or lumpsum?

SIP is the recommended mode for all equity-oriented investments

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?

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