Both SIP and lumpsum investing put your money into the same funds — the only difference is timing. A SIP spreads your investment across months; a lumpsum deploys it all at once.
When a SIP wins
If markets are volatile or you're investing from your salary, a SIP averages your purchase price (rupee-cost averaging) and removes the pressure of timing the market.
- You invest monthly from income
- Markets are choppy or near highs
- You want to build discipline without watching the market
When a lumpsum wins
If you already have a large sum (a bonus, maturity, or windfall) and markets are reasonably valued, history shows lumpsum often beats SIP because the money is invested longer.
Use our SIP calculator to project monthly investing, and the compound interest calculator for a one-time amount, then compare the two for your numbers.
Sources
Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.
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