SIP or lumpsum: Which is better?

Right off the bat, we'd like to mention that SIP (systematic investment plan) is a much superior alternative to the lumpsum method because it solves four big problems that people face while starting their investing journey: Option to invest small amounts: The SIP facility allows you to invest in mutual funds starting at just Rs 500 every month. If you think what difference such a small monthly investment can make, we can factually say that slowly but steadily, your money will start growing, leading to a bigger corpus over time. Reduces risk: In fact, starting small can be better in hindsight. Because even if you make mistakes initially, a large amount of money would not be at stake. On the contrary, if you keep waiting to accumulate a sizable amount before making your first mutual fund investment, you may be too late. That's because your mutual fund investments, if given

This article was originally published on June 07, 2022, and last updated on October 13, 2022.