What is a SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount in a mutual fund at regular intervals. Even as little as ?500 per month can get you started.
What is a Lump Sum Investment?
A lump sum investment means investing a larger amount at one time. This approach is suitable when you have a windfall such as a bonus or matured FD.
The Power of Rupee Cost Averaging (SIP)
When markets fall, your SIP buys more units at lower prices. When markets rise, the units you accumulated are worth more. Over time, this averages out your cost and reduces the impact of market volatility.
When Lump Sum Works Better
If you invest at the bottom of a market correction, returns can be significantly higher than SIP. However, timing the market consistently is nearly impossible.
Our Recommendation
For most investors, SIP is the smarter default choice — especially for salaried professionals building wealth over 5–15 years. For a windfall, consider SIP + STP combination.
ArrtaMoney's investment advisors can help create a personalised plan. Explore our Investment Advisory services.
