SIP vs. Lump Sum: Which is the Best Investment Strategy for Mutual Funds in India?
Table of content
Introduction
What Is A Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) offers a straightforward and user-friendly method for investing in mutual funds. It enables investors to regularly deposit a predetermined sum of money, often on a monthly basis, into a selected mutual fund scheme. SIPs provide an economical starting point for entering the investment arena, ensuring accessibility to a diverse range of investors, spanning from novices to seasoned professionals.
What is A Lump Sum Investment ?
A Lump Sum Investment is the act of putting a substantial amount of money into an investment vehicle, such as stocks, bonds, real estate, or mutual funds, in one go. Unlike SIPs, which spread investments over time, lump sum investments provide an immediate opportunity for capital growth.
Pros And Cons Of SIPs
Systematic Investment Plans (SIPs) have emerged as a popular investment tool, particularly in the realm of mutual funds. These plans provide a methodical and controlled approach to investing, but akin to any financial strategy, they bring forth a distinct set of benefits and drawbacks. We'll delve into the advantages and disadvantages of SIPs to assist you in making well-informed choices when considering their inclusion in your investment portfolio.
Pros of SIPs
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