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Understanding SIP and Lump Sum Investments
When it comes to wealth creation and financial planning, two of the most popular investment approaches are Systematic Investment Plans (SIPs) and Lump Sum investments.
What is SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount of money at regular intervals, usually monthly.
What is Lump Sum Investment?
In a Lump Sum investment, you invest a large amount of money in one go.
Frequently Asked Questions (FAQs)
1. Which is safer, SIP or Lump Sum?
SIPs are generally considered safer because they reduce timing risk and average out market volatility.
2. Can I invest in both SIP and Lump Sum together?
Yes, many investors use a combination of SIP and Lump Sum.