Avoids trouble of timing your investments In an SIP, you invest a fixed sum regularly irrespective of market conditions. Whereas, in case of lump sum investments, you have to figure out a good time to invest in order to maximise gains. You might get into trouble if your timing is wrong.
Freedom from tracking markets Unlike lump sum investments, where you need to track the markets regularly, in SIPs, you do not need to continuously follow the fortunes of the market.
Easy on your pocket In case of SIPs, you invest small amounts regularly whereas in lump sum investments, you invest a big amount at one go.
Don’t need right timing of investment In lump sum investments, you need to get the timing of your investments right. In SIPs, the average cost of buying a unit evens out over time
Helps you regularly tap investment opportunities In SIPs, you do not miss out any market opportunities as you invest regularly. In lump sum investments, you run the risk of postponing or exiting your investments fearing a fall in the markets.
We hope you found this useful. For more, download our mobile app, visit our website www.fundoomoney.com and subscribe to our YouTube channel and digital magazines FundooMoney Indian. Also, follow us on Instagram, Pinterest and Slideshare.
