SIP vs Lump Sum Investment: Which Is Better in 2025 ?

Introduction

Investing in mutual funds can be done in two ways—SIP (Systematic Investment Plan) and Lump Sum. Each method suits different types of investors.

What Is SIP?

SIP allows you to invest small fixed amounts regularly, helping you build wealth gradually while benefiting from rupee cost averaging.

What Is Lump Sum?

A one-time investment made when you have surplus funds and want to capture market opportunities.

Conclusion

If you prefer disciplined investing, SIP is ideal. If you have higher risk appetite and market knowledge, lump-sum investments can deliver strong returns.

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