SIP vs Lumpsum: Which Works Better for Indian Investors?

A SIP (Systematic Investment Plan) is a disciplined way to invest a fixed amount every month into a mutual fund. A lumpsum invests a large one-time amount. SIPs average out market volatility (rupee-cost averaging). Lumpsum can outperform in a steadily rising market but exposes you to timing risk. For most salaried Indians, SIPs are a lower-stress starting point. Example illustrated with hypothetical 12% returns — these are not guarantees.