Comparison
SIP vs Lump Sum Investing
If the money already exists, lump sum wins on average but carries timing risk. If it arrives monthly, a SIP is not a compromise — it is simply the correct method for that cash flow.
Option A
Monthly SIP
In favour
- Removes the need to time the market
- Matches how salary income actually arrives
- Averages your purchase price across cycles
- Far easier to sustain as a habit
Against
- Money sitting in cash earns less while it waits
- Historically trails lump sum in consistently rising markets
vs
Option B
Lump sum
In favour
- All the money starts compounding immediately
- Wins on average when markets rise over the period
- Fewer transactions and less admin
Against
- A poorly timed entry can take years to recover
- Requires the capital to already exist
- Psychologically hard to do at a market high
Settle it
SIP & Monthly Investment Calculator
FV = Σ instalment × (1 + r)n for every month, with the instalment stepped up annually
Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.