Difference SIP vs Lumpsum Investment

Dec 21, 2022 By- Rajendra

[{"selector":"#anim-24b31fb3-532b-443f-a82a-5bcb9b5d637e","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2b93f85b-c854-4ec3-b0a6-466109d4e6e5","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] SIP is a method of investing in mutual funds, which are products used for investments. Image Credit- Unsplash

[{"selector":"#anim-cae073d1-eb59-47ab-84f6-7061d0dca10c","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-11ab3522-d32d-4a98-bff6-1412c47a9b7f","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] When we invest a lump sum purchase in a mutual fund, we have no way to predict if the NAV we would receive in the future will be high or low. Image Credit- Unsplash

[{"selector":"#anim-2e376e90-5a8a-417e-b256-7b1152d42105","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-a6784e06-6426-41d2-aff9-a49a3027b6e6","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Apply SIP to buy in smaller amounts and experience the market's highs and lows. Image Credit- Unsplash

[{"selector":"#anim-622392d2-6219-414d-9ec7-607d438e5a05","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-03755bfe-db4c-4826-8070-50856c69c4f7","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The winner of Lumsum and Sip changes with time. Both choices are accurate in their possible role. Image Credit- Unsplash

[{"selector":"#anim-d41682e8-41b7-4e68-a1f8-16a9187ed0a6","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-432dc638-4210-4b69-b562-2151d3c6e9b8","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] SIP offers a strategy of investing discipline with time intervals split out evenly and precisely. Image Credit- Unsplash

[{"selector":"#anim-286dcef5-383c-4897-8d4a-97d8401365b6","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-6553da90-da03-4a86-b119-984b7847dd7f","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Both options are best for long term investment. Image Credit- Unsplash

[{"selector":"#anim-28a05a1b-a9c4-4fb4-a54b-9b8ea73d95f8","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-d8f109ac-c3b8-40a0-aeff-135a83b253d6","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] When there is a lot of volatility, a lump sum investment is specifically useful. Image Credit- Unsplash

[{"selector":"#anim-7a0cb2ef-5d92-4410-9d31-00b0c7377cbf","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-eb6266d0-a46f-4c6f-92fd-12552865233e","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Due to this, investors are able to profit from the majority of market rallies. Image Credit- Unsplash Learn more

[{"selector":"#anim-19b79059-116f-482e-83c1-7938636663ee","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2f35e85b-f468-4c66-b07b-956b871098d8","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] SIP investment method enables you to invest the same amount of money to buy more units while the market is down and reversing Image Credit- Unsplash

[{"selector":"#anim-4e88e06e-9ce2-443f-bc9c-2068095573f6","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ef1627dc-0f22-4c11-8401-75797e89a310","keyframes":{"transform":["translate3d(-140.08811%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The difference between SIP and mutual funds is difficult for many investors to understand because of these words’ confusion. Learn more