How long should that SIP be?

Summary: When investors receive a large lump sum, deciding how long to stagger it through an SIP becomes an important question. This article explores the trade-off between reducing market-timing risk and staying invested long enough to benefit from equities. It's a question that vexes many mutual fund investors once they buy into the concept of investing through a systematic investment plan (SIP): When you have a lump sum to invest, then over what period should you spread the SIP? Of course, for most SIP investments, the question does not arise. The most common type of SIP investment is a monthly one that goes out of a monthly income. This sort of SIP continues perpetually and is simply a way to keep investing without bothering to actually take the time out and do it. Suggested read: Why SIPs score over lump sum investments However, occasionally, the SIP investor gets a large sum of money at one go. It could be a bonus from a workplace (although that's a rarity nowadays), or it could be the proceeds from the sale of some asset like real estate, or it could even be your retirement kitty, which you need to spread and make it last for the rest of your life. As every saver should know, investing in an equity-backed mu