What the maths says
In a steadily rising market, a lump sum invested on day one beats a SIP of the same total amount, because more money spends more time compounding.
In a volatile or falling-then-rising market, the SIP wins by buying more units at lower prices — the classic rupee-cost-averaging benefit.
What actually decides it
Most investors do not have a lump sum; they have monthly surplus. For them the debate is academic — the SIP is the only executable plan, and consistency matters far more than entry timing.
If you do receive a windfall, staggering it over six to twelve months through an STP captures most of the averaging benefit without sitting out of the market for years.
Behaviour beats optimisation
The biggest destroyer of returns is stopping a SIP during a drawdown. Automate it, review annually, and increase the amount with every raise.
Want this applied to your own numbers?
Send us your details and an advisor replies within 2 business hours.
Apply now