SIP vs lumpsum: How investors can decide the right strategy for wealth creation
Systematic investment plans (SIPs) and lumpsum investments remain two of the most popular routes for investing in equities. While both aim to build wealth, understanding the nuances of each approach can help investors optimise returns based on market conditions, risk appetite, and availability of funds.
Experts emphasise that SIPs and lumpsum are not mutually exclusive, but complementary.
Juzer Gabajiwala, Director at Ventura, explains, “SIP is an evergreen product. Even when markets are high and corrections are possible, SIP allows investors to continue building wealth. Lumpsum, on the other hand, works best when the market is expected to rise steadily and investors have a long-term horizon.”
How SIPs and lumpsum have performed
