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SIP vs Lumpsum: Which is Better?

SIP, or Systematic Investment Plan, involves regularly investing a fixed amount, providing a disciplined and gradual approach to mutual fund investments. On the other hand, lumpsum investment plans provide investors with the opportunity to invest a significant amount in a single transaction, allowing for potential capital appreciation over time. The key difference between lumpsum and SIP lies in the investment approach, with SIP plan offering periodic contributions and lumpsum involving a single, larger investment. Ultimately, the decision between SIP vs lumpsum hinges on aligning one’s investment approach with their unique financial objectives and risk appetite.

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