Is SIP better or lump sum?
How is SIP better than Lum Sump? [A] Introduction: SIP stands for Systematic Investment Plan. If you decipher the full form, you will realize that SIP is basically a way of investing, rather, a systematic way. The whole idea of SIP is not new. The same thing is called “Recurring Deposit” (RD) if you prefer to invest in term or fixed deposits in a staggered manner. But yes, there is a difference between SIP and RD. Please note that here we have assumed that one is interested in doing a mutual fund SIP in an equity fund. An SIP is a way to invest money in the equity at regular intervals - generally that interval is monthly. That way, you keep investing a fixed sum of money at a regular interval that allows you to stagger your invested across the time lines (months, years) and also at the different levels of market. So, you keep investing when market is high, low or flat. That allows you to average your NPV. One advantage of this method is that you do not have to time the market. You ca