SIP vs Lumpsum: practical comparison
Instead of asking which is universally better, ask which matches your cash-flow reality, volatility tolerance, and goal timeline.
SIP tends to fit when
- You invest from monthly income.
- You want to reduce timing pressure.
- You value automation and discipline.
Lumpsum tends to fit when
- You already have deployable cash.
- You can absorb short-term volatility.
- Your horizon is long enough.