SIP vs Lump Sum: Which is Better? | JSK Financial Services
Understand the key differences between SIP and lump sum investing, and learn how to choose the right approach based on goals, time horizon, and market conditions.
When it comes to mutual fund investing, most investors ask one question: should I invest through SIP or a lump sum? The answer depends on your goals, time horizon, and comfort with market volatility.
What is SIP?
A Systematic Investment Plan (SIP) is a disciplined approach where you invest a fixed amount at regular intervals. It helps you build a habit, average purchase cost, and stay consistent across market cycles.
What is Lump Sum?
A lump sum investment means investing a larger amount at one time. It may suit investors who have surplus funds and a long-term horizon, especially when valuations are reasonable.
How to choose
- Prefer SIP if you want discipline, have regular income, or feel uncertain about market timing.
- Prefer Lump Sum if you have surplus funds and a long-term horizon and can tolerate volatility.
- Combine both if you want to invest surplus but still keep discipline through SIP.
At JSK Financial Services, we help you align your investment method with your goals and risk comfort—clearly and transparently.