SIP vs Lump Sum Investment

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SIP vs Lump Sum Investment


SIP (Systematic Investment Plan) and Lump Sum are two different ways of investing money in mutual funds or stocks. SIP means investing a fixed amount regularly, like every month. It helps build the habit of saving and reduces the risk of market ups and downs because you invest at different price levels over time. Lump Sum, on the other hand, means investing a large amount all at once. It is useful when you have a big amount ready and want to take advantage of current market opportunities. SIP is ideal for salaried people or those who want to invest slowly and steadily. Lump Sum is better for those who have a large amount to invest and are confident about the market timing. Both methods have their advantages, and the choice depends on your financial goals, market conditions, and risk comfort.


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