While a lumpsum calculator helps with one-time investments, many investors also explore the SIP route. A mutual fund SIP investment involves investing fixed amounts at regular intervals. This can mitigate the impact of market volatility to some extent because you invest a fixed amount despite market conditions. As a result, you purchase more units when markets are low and fewer when they are high. Over time, this can also lower your per-unit investment cost.
So, which should you choose? If you have a lumpsum and a higher risk appetite, investing it fully (or gradually via STP) may yield higher returns in favourable market conditions. But if you prefer a disciplined approach and what lower market timing risk, SIPs may be more suitable. Many investors use both methods depending on their cash flow and financial goals.
