Comparison guide
SIP vs Lumpsum — Which Investment Style Wins?
Most online debates on SIP vs lumpsum ignore the fact that the answer depends on what markets do, not on which method is 'better'.
// rising market
When markets are in a clear uptrend, a lumpsum invested on Day 1 captures the entire rally. A SIP buys progressively expensive units and ends up with less wealth, despite costing the same total.
// sideways / falling market
When markets are volatile or in a downtrend, the SIP shines. Cost-averaging buys more units at lower prices. If markets recover later, the SIP's lower average cost translates into bigger gains.
// what you should actually do
Most retail investors don't have a large lumpsum lying around — their monthly savings naturally fit a SIP. For investors with a lumpsum (bonus, inheritance, retirement payout), an STP into the target equity fund over 6–12 months is the practical middle ground.
// frequently asked questions
Trying to time the market consistently is statistically very hard. If you have a lumpsum and a 15+ year horizon, deploying it via an STP into equity over 6–12 months mitigates the worst-case 'right before a crash' scenario.