Lump sum investing involves investing a large amount at once,
while SIP involves regular, smaller investments over time. Both approaches have
advantages and can suit different investors depending on their financial goals,
risk tolerance, and investment preferences.
· Lump sum Investment: With lump sum investing, you invest a large amount of money into a mutual fund. This can be a one-time investment, typically done with a significant sum of money available upfront.
· SIP (Systematic Investment Plan): IP involves investing a fixed amount of money regularly, typically monthly, into a mutual fund. Instead of investing a large sum upfront, you spread your investment over time, which can help average out the cost of buying units, potentially reducing the impact of market volatility. You get a certain number of units of the fund based on the price for that day (NAV).
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