Investing
SIP vs Lumpsum: The Ultimate 2025 Guide
Nov 30, 2025 5 min read
Investing in mutual funds is one of the best ways to grow wealth, but the dilemma often lies in how to invest—Systematic Investment Plan (SIP) or Lumpsum?
What is SIP?
SIP allows you to invest small amounts periodically (monthly, quarterly) into a mutual fund scheme. It helps in rupee cost averaging and brings financial discipline.
What is Lumpsum?
Lumpsum investment is when you deposit a significant amount in one go. This is ideal when you have a windfall gain like a bonus or sale of an asset.
Verdict for 2025
Given the current market volatility, SIPs are generally safer for retail investors as they average out the cost of buying. However, if the market corrects significantly, a lumpsum investment can yield higher returns in the long run.