What is the difference between SIP and Lumpsum?

Question

Accepted Answer

SIP and Lumpsum are two different investment methods. SIP involves investing a fixed amount at regular intervals while Lumpsum involves investing a large sum at once.

SIP involves investing a fixed amount at regular intervals, usually monthly or quarterly
Lumpsum involves investing a large sum at once
SIP is a good option for those who want to invest regularly and in a disciplined manner
Lumpsum is a good option for those who have a large sum of money to invest at once
SIP helps in averaging out the cost of investment over a period of time
Lumpsum can be risky as the entire amount is invested at once and the market may be volatile at that time

What is the difference between SIP and Lumpsum?

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