SIP is like planting a seed, nurturing them from time to time. Investing lump sum is like instant blossom which may or may not give best results.

Both have their own pros & cons.

• SIP mitigates risk, develops investment discipline, and helps in averaging. On the other hand, investing lump sums may provide higher returns and investors may or may not need to make regular contributions.
• SIP may restrict the initial investment amount, however lump sum investments could be difficult for some people. SIP can be started from the minimum amount of Rs 500 and in Lump Sum, Investors can start from bare minimum amount Rs 5000.
• SIPs decrease risk a lot when compared to lump sums.

Choosing between both might be easy after answering few questions-

• What are your financial goals?
• To what extent are you willing to accept risks?
• For how long will you be making this investment?

Comment below, What type of investment is better for you?