lumpsum investment vs Sip

 

Some person asked, bro what is sip when they see our investment  post in our blog. So, today we are going to compare sip and lumpsum investment and find what is set for you.

                  If you open any investment app there we have mutual fund option if you select that you have two option.

                 1. One time investment (or ) lumpsum investment
               2. Sip

          
            Will you choose lumpsum you can select the find and put the total amount but you choose sip method then you give a  instruction to your investment app that instruction is a specific fund transfer from your bank account due to a specific date.

            Sip means systematic investment plan

  For example, if all months 20,000 thousand salary credit in your account if you want to invest 5,000 rupees then you open your investment app and select sip opction then every month 5th day 5,000 rupees systematically invest to the specific fund for this you get a OTP from the bank . If you enter the OTP and activate it , then every month 5th day 5,000 rupees automatically transfer from the account to your fund.

                        The investment purpose have a important factor that is human emotion , If give a good benifit for long time.

                 Now we see one by one .....

              
      1) Rupee cast averaging
     
                       If you see that graph increase but there is more ul and down in the short time. If you are the financial export you analyse the daily market when it up (or) down that production is very, if you can predict and you are a full time employer but you can't see the market all time. You can't invest lumpsum suppose you have 1 lacks rupees you want to invest in lumpsum market and next few months the market is full then your investment is negative. But, if market is crash then you invest lumpsum then you get more returns same as sip but , historically market crash is so rare . This rare case is held on march lockdown if you invest lumpsum amount on that time you are the smart investor but market will not under value sometime market will far valid (or) over valid in that reason we don't waste the time , If the market is far we invest the normal amount in low we get many lots from sip  We get a average. If the market is high we don't worry for the long amount investment so in single words if you won' t average return then sip is the best option .

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                        If you start invest then you think stock market in your carrer. If you see a markets up and down daily and technically analyse that (or) invest automatically and you archive a financial freedom? for this question you answered you get a glarity.

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        For example...
                              If your goal is that you archive a financial freedom then you don't earn from stock market. You earn from other business and invest for your retainment. If you know the sip market crash then you invest in lumpsum amount but you think to earn from stock market then you technically analyse and you turn traid then you watch stock market daily. So, logically you watch the market daily and generate high return.

   2)  Sip builds discipline
  
                     For us financial discipline the blank automatically transfer some specific monthly amount that is like  the richest man  in the babylone pay your self first so you , I wish you to get the money from the job and invest it from the sip and reach a financial freedom.

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