SIP vs Lumpsum Calculator

SIP is better for most investors because it reduces timing risk through rupee cost averaging and builds discipline. Lumpsum can outperform if you invest at market lows, but timing the market is difficult. For beginners, SIP is recommended. Experienced investors can use lumpsum when markets are clearly undervalued.

Rupee cost averaging means investing fixed amounts regularly regardless of market conditions. When markets are down, you buy more units. When markets are up, you buy fewer units. This averages out your purchase price over time, reducing the impact of market volatility.

Yes! Many investors use both strategies: lumpsum for windfalls/bonuses and SIP for regular monthly savings. This combines the benefits of both approaches - immediate market exposure from lumpsum and disciplined regular investing through SIP.