You have decided that you want to invest in a certain Mutual Fund scheme. But now you are not sure how to invest. You have two options:

Lumpsum: A large amount is invested at one go

• Every rupee stays invested for the full tenure of the investment

• Requires a more experienced investor

• Doesn’t require a strict saving habit

• Allows investing according to current market valuations

Who may invest?

• A bonus received from work

• An inheritance

• A gift from family on a special occasion

Systematic Investment Plan: A small amount is invested at regular intervals

• You can start with an amount as low as Rs.500

• Allows rupee cost averaging

• Automated deduction makes you a disciplined investor

• Can create separate funds for different goals

• Can be increased with increase in your salary/income

Who may invest?

• Anyone with a little amount to spare every month due to a lot of expenses

Another Option? Go for Both

You can keep SIP as the core strategy in your portfolio but if you have investible surplus or come into a windfall earning, you can invest it as a lumpsum.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.