Mutual Fund SIP vs. Lump Sum: Which Investment Mode Is Best for You?

Mutual Fund SIP vs. Lump Sum: People often think of investing as a way to save money for old age. But having extra money saved up can let you do other things that are important to you. You might want to go on a big trip for six months, however, you can fund yourself with the help of investing.

Putting the money you've earned to work is a big step toward your financial goals. However, there are so many investment choices, so might get confused about choosing the right one.

Systematic Investment Plans and Lump Sum investments are two common ways to invest your money in mutual funds and earn higher profit to finance your retirement.

What is a Systematic Investment Plan (SIP)?

A SIP is a type of investment plan that allows people to invest in mutual funds for a small amount of money every month or every three months and it has very little risk.

People consider investing through a SIP because it expands people's investment in Mutual Funds over a long period of time and SIP lowers the risk of investing at a high price.

What is Lump Sum?

The Lump Sum investment is a type of investment in which an invests all his money at once.

The good thing about lump sum investing is that if the market is going up, you might get better returns almost right away.

However, it has a bigger risk, because the investor puts in a lot of money all at once. A lump sum calculator makes it easy to figure out how much money an investor is likely to get back.

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Which Investment Mode Is Best for You?

If you SIP investment, you can put in a set amount of money regularly, like once a month, three times a year, or once a year. If you are a safe investor or new to investment and want to make money without heavy risks then SIP will be best for you.

A lump sum investment, on the other hand, you put all of your money into a mutual fund plan at once. If you are an experienced investor and want to make more profit with higher risk then investing in a Lump sum will be best for you.

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