SIP, STP or Lumpsum, which strategy wins? Explained
Navigating volatile markets is often difficult for investors. No one knows which side the markets could move and when. Volatile markets could rise for a week but then suddenly fall and wipe off the gains of the whole week. So, how does one invest during such times? Of the three strategies, Systematic Investment Plan (SIP), lumpsum and Systematic Transfer Plan (STP), which one wins in volatile markets?
Rohan Goyal, Investment Research Analyst, at MIRA Money has answered the above queries below:
SIPs are generally a better way to invest in a volatile market, mainly due to the uncertainty of the direction of movement and the time period for which the volatility could continue.
SIPs help build the portfolio gradually during such times by…
