Which is better for me - SIP or Lumpsum investment?

 You must always know which is a better option either to do investment by SIP or by lumpsum investment.



This blog will help you to understand difference between SIP and Lumpsum investments, which will encourage you to choose the best for yourself. Let's take the first step towards financial freedom.

  Whenever we talk about investment in Mutual Funds, it can be done in 2 ways i.e., either by SIP or by Lumpsum investment. Let's talk about them in detail:

1. SIP- The full form of SIP is Systematic Investment Plan, this encourages you to do investment on regular monthly basis. In this all you need to do is to select the best mutual fund and enter a amount that you want to invest monthly. There are many SIPs which are start from minimum investment of 100.

This is best suitable for employees working with fixed income, they must decide an amount or a certain percentage that they will invest in mutual funds to grow their money.

Let me address few questions that may arise during reading this blog:

Can I increase my SIP amount or can SIP amount be changed? The answer is YES, certain platforms provide you the convenience of changing the SIP amount. If not, then you can start another SIP into the same mutual fund, amount will always get added. It's always better to select MF which gives you flexibility of changing the amount like Fyers Direct.

Can I stop my SIP anytime or can I pause my SIP anytime? The answer is YES, you can stop your SIP anytime when you feel after the lock in period. But it's very important to stay in the investments for a longer time to take advantage of compounding effect. This is multiply your money multifold times.

Can I withdraw my SIP anytime? The answer is YES, you can withdraw the amount anytime after the lock in period. Most funds have less lock in period that is up to few weeks. It is always better to check before starting. There are many MFs available with no lock in period.

Let's see whether can be really become crorepati after starting SIP?



2. Lumpsum- In this type of plans, you need to investment a certain amount in a single shot that means you can invest hundreds, thousands or lakhs of rupees at one time. This is best for people those who have good savings with them. 

This is highly suitable in certain cases like if someone has sold his or her property and is looking to multiply their investment. As to make 1 Crore you will need minimum investment of 10 lakhs (this is subject to market movement, on an average we get 12.5%. 

For youngsters, they get pocket money so depending on their savings after excluding the monthly expense, lumpsum investment is the best option. I myself invest through lumpsum plans on regular basis. 

This is again a best investment option for business tycoons, let's understand how: suppose a they make a turnover of 20 lakhs in an year so after excluding the expenses, they can invest a certain percentage of their profits in mutual funds. This will help them to get financially free much sooner.

What if I don't have fixed income nor huge money to invest? First of all, I would like to say same-pinch as I am also sailing in the same boat. But as our ancestors have said that jha chah whaa raah & where there is a will, there is a way, you can investment through lumpsum amount on regular basis in the same MF, you capital amount will always keep increasing. SO START NOW no matter what.

Let's see whether can be really become crorepati after doing lumpsum investment?


Click here to check Best lumpsum investment calculator and to check Best SIP calculator.

Link to join my Telegram group to so that you don't miss any finance related blogs in future.

https://t.me/multiplyingmoneymadeeasy


ACTION STEPS:

START investing through SIP if you have fixed income or else go for lumpsum investment. 


I wish you a very bright and financially free future. Kindly share this useful blog with your family and friends. Take care and keep coming back for more such financial blogs. 

Information sahi milegii yhi








Location: Mumbai, Maharashtra, India

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