Investor Education

SIP or LumpSum - Which is better?

Confused about the difference between SIP vs Lumpsum? Watch the video to learn more about SIP and rupee cost averaging.

SIP or Systematic Investment Plans are a disciplined way of investing wherein the investor invests an amount regularly and reaps benefit of it after a certain time as SIP returns. In lumpsum investment, a significant amount of money is invested all at once and the returns are obtained after a certain period of time. SIP is nothing but rupee cost averaging. One needs to consider the pros and cons of both. Lumpsum strategies work when one manages to invest at a time the market prices are rising. SIP work better when the prices are going down. Frequency and the time of withdrawal also plays an important role in deciding which is better. Here is a Moneyfront SIP calculator to help you learn how much you need to invest today, to earn your target corpus:

We hope you enjoyed watching this video!

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Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of 

Franklin Templeton Mutual Fund | Oct 12, 2018