SIP VS LUMPSUM: HOW DO YOU CHOOSE?

Breaking down the differences between Systematic Investment Plans and lumpsum investments to help you decide.

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WHAT IS SIP?

Invest in bite-sized instalments – as little as Rs. 500 a month – and watch your money potentially grow over time.

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WHAT IS LUMPSUM?

Invest everything at once, and let the market do the rest!

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SIP: PROS AND CONS

Pros: Discipline, affordability, and risk mitigation, all in one go!

Cons: Reduced growth potential in rising markets

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LUMPSUM: PROS AND CONS

Pros: Invest once and you’re done! Plus, higher growth potential in rising markets

Cons: Greater risk in falling markets, and you need a larger principal for effective investing

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CHOOSE SIP IF

  • You want to save in small and steady investments

  • You want to reduce risk

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CHOOSE LUMPSUM IF

  • You have a large sum of funds

  • You’re open to higher risk for higher reward potential

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