Investments
SIP vs lump sum
A SIP spreads contributions across time, while a lump sum puts the full amount to work immediately; neither method guarantees a better market outcome.
Cash-flow difference
SIPs can suit a regular monthly surplus. A lump sum requires investable money upfront and is exposed to market movement from the investment date.
Return comparisons need care
A SIP has many cash-flow dates, so XIRR is often more informative for realised SIP performance than a simple CAGR comparison. Projections use assumptions, not actual fund results.
Step-up SIP
Increasing a SIP periodically changes the cash flows and can increase the amount invested. It should be affordable rather than automatic.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculator