Worried about losses? Invest in the SIPs for good!
Your choice of a Mutual Fund Scheme does not define the mode of investment i.e. Systematic Investment Plan (SIP) or lump sum. The mode of investment is an investor’s choice.
It is also dependent on the cash in hand. Also, even though lump sum may work wonders if the market is growing; when the markets are not soaring a lump sum investment can be relatively riskier.
SIP, here, helps in spreading out your risks over a period of time. Having said that, if you believe you can gauge the market condition effectively and are willing to take the risk, a lump sum investment might just be in your favour. Hence, it is a relative decision.
However, if the cash in hand is not much and the decision is for a longer run, SIP does have the below benefits over lumpsum investing-