SIP or Lumpsum: Which Option Will Give Better Returns in Mutual Funds

Jul 7 18:55 2021 QuantumMF Print This Article

How do you decide which are the best mutual funds to invest? More so which are the modes to invest in mutual fund after you choose the best mutual funds to invest?

Once you have chosen the best mutual fund to invest,Guest Posting SIP & Lumpsum are the two ways to grow your investments. An SIP is considered to be a good option for investment purposes. It is convenient, flexible and inculcates a habit of investing. In an SIP, a fixed sum of money will be deducted from your bank account and will be invested in the fund of your choice. Whereas in Lumpsum, you will need to time the markets. You will need to have a sound knowledge of the markets and be smart enough to make a call on when to invest to realize better gains.

Advantages of SIP & Lumpsum investment:

SIP – When you initiate an SIP, a fixed sum of money gets deducted periodically. So when the market is down, you get more units and vice-versa. This helps in cost averaging. You don’t have to time the markets at all. It’s perfect for people who have just started to invest or completely new to investing.

Lumpsum – If you wish you invest in lumpsum, you will need to be very good in timing the markets. If the markets are low, your investment can give you more units. You will need to just make a one-time investment unlike SIP where you periodically make investments.

Drawbacks of SIP & Lumpsum investment:

SIP – Starting an SIP is like opening an umbrella, even if it’s raining or not. Which means even when the markets are high you are still making an investment resulting in accumulation of fewer units as compared to when investing in low market. 

Lumpsum – You will need to have a very good knowledge about the markets to make right decision to invest in lumpsum. If you invest and the markets go down, you will end up losing your wealth. Hence, a good knowledge about the markets and a foresight is needed when you choose to invest via lumpsum. 

Regardless of which investing mode you chose; it is the selection of best mutual fund for SIP or lumpsum that play a crucial role. for long term risk adjusted returns. After selection of best mutual fund to invest in for a long term, you can initiate an SIP or make an lumpsum investment.

Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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QuantumMF
QuantumMF

Quantum Mutual Fund has over 14 years of experience into mutual funds and puts the needs of investors like you first. Invest in different types of schemes & start an SIP with Quantum Mutual Funds today!

Quantum Mutual Fund believes in sustainable growth built with integrity & transparency and are trusted by over 50,000 active investors to achieve their wealth creation goals. Our aim is to generate sensible, risk returns for your investment horizon.

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