Lump sum vs sip investment in present scenario

Q & A Forum › Category: Investments › Lump sum vs sip investment in present scenario

dr_claiwala asked 8 years ago

Dear srikantji, I need to invest 25 lakhs in aggressive balance fund with 5 yrs horizon . Should I invest lump sum or start STP /SIP?

1 Answers

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Sreekanth Staff answered 8 years ago

Hi, Considering your time-frame & current market levels, may be STP is a better strategy. Can set up STP for next 6 to 12 months. Related articles : https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/ https://www.relakhs.com/sip-systematic-investment-plan/ https://www.relakhs.com/200-day-moving-average-dma-mutual-funds/

Rony replied 8 years ago

How about for a sum of 1 or 2 lacs in a balanced fund over a 5 year period? Should such a small amount also advisable to be invested through STP or will lump sum do?

Sreekanth Staff replied 8 years ago

Hi..Small or big, can vary from individual to individual. SIP or lump sum, no right or wrong answer.In the current scenario, STP can be a better option (or) investing in 2 – 4 installments on the days when markets fall can also be considered (if one has time and interest to track the markets).