SIP vs Lumpsum — Which Investment Strategy Works Better?

SIP (Systematic Investment Plan) invests a fixed amount at regular intervals (usually monthly). When prices are low, you buy more units; when high, you buy fewer. This is called rupee cost averaging — it reduces the risk of investing at the wrong time.

Lumpsum investing means putting all your money in at once. Historically, lumpsum has outperformed SIP about 65% of the time — because markets tend to go up over time. But the 35% of times it underperforms can be painful.

• You have a monthly salary and want to invest regularly
• You're worried about market timing
• You're new to equity investing
• You want to build discipline

• You have a large sum (bonus, inheritance, matured FD)
• Markets have recently corrected significantly
• You have a long investment horizon (7+ years)
• You can handle short-term volatility