Difference between SIP VS Lumpsum Investments in Mutual Funds

What Is a SIP Investment?

What Is a Lumpsum Investment?

What Is the Difference Between SIP and Lumpsum Mutual Fund?


Given below is a comparative analysis of SIP vs. lumpsum:

Basis of Comparison



Need for Monitoring the Market

Investors should keep tabs on the market performance on a regular basis as they can enter various market cycles during their SIP tenure.

Investors need not monitor the market as lumpsum investments are usually made for the long term.


SIPs are a more flexible investment method compared to the lumpsum option.

Lumpsum investments lack flexibility.

Response to Market Volatility

SIPs are not very reactive to market volatility.

Lumpsum investments are highly responsive.

Inculcation of Financial Discipline

This investment option can inculcate financial discipline in investors as they get into the habit of investing in a planned manner.

It does not inculcate such discipline as the investment is made at one go.

SIP vs. Lumpsum: Which Is Better?

Frequently Asked Questions