Moral of the story is both styles of investments give good returns in equities if held for the long-term. As long as you remain invested in the right fund, SIP or lump sum Investments both do well. Historically, investors have earned an average of 15 per cent annualised per annum if they remained invested for more than 10 years.
Why the sudden importance of SIP and why everybody and her/his aunt is suggesting SIPs? Well, here are the main reasons:
SIPs help you in avoiding timing the market
It instills discipline towards investments
You do not necessarily have to invest a big amount
SIP helps you in being a regular investor
All said and done remember that the basic purpose of investing is to get money when you need it the most. Hence invest wisely.
Also read: Quiz: What's your inflation
quotient?
Advertisement
