Which type of investment is better- lumpsum or SIP?

Both lumpsum investment and SIP (Systematic Investment Plan) have their own benefits. With lumpsum investment, you invest a large amount in one go. This allows your money to start growing right away. However, timing the market is crucial - investing at market peaks means lower returns.

SIP allows you to invest small fixed amounts regularly, like monthly or quarterly. This averages out your purchase price, reducing risk. SIP inculcates a disciplined approach, helping you stay invested for the long term.

Overall, SIP is recommended for most retail investors as it enforces discipline, reduces market timing risk and allows wealth creation through the power of compounding. A lump sum investment is suitable if you have a large amount to invest and are convinced about entering the market at the right time.

For goals with shorter timelines, lumpsum investment may be preferred. The ideal approach is a combination of both - SIP for disciplined investing supplemented by lumpsum for opportunistic investing during market dips.

You may use the online Lumpsum Calculator to understand your investment goals better.