When is the Right Time to Invest in Lump Sum and SIP?

When is the Right Time to Invest in Lump Sum and SIP?

Investors often ask:

“Should I go for SIP or invest a lump sum?”

The answer depends on market conditions, your financial goals, and risk appetite. Let’s break it down — and see how EzyMoneyDeals helps you make the right call.

SIPs are for consistency. Lump sums are for opportunity.

SIP (Systematic Investment Plan): Best for All Market Cycles

Ideal When:

• You have regular monthly income
• You want to build long-term wealth without market timing
• Markets are volatile or uncertain

Why It Works:

• Rupee cost averaging helps reduce the average purchase cost
• Builds investment discipline
• Perfect for long-term goals

Best Time to Start SIP?

Anytime — especially during market ups and downs.
The earlier you start, the more time your investment gets to compound.

EzyMoneyDeals Advantage:

• Easy SIP setup in top-rated funds
• Goal-based planning and SIP boosters
• Real-time tracking and reminders

Lump Sum Investment: Best When Market is Low or Flat

Ideal When:

• You have idle cash (bonus, inheritance, FD maturity)
• Markets have recently corrected
• You are a moderate to high-risk investor

 Best Time for Lump Sum?

• After a 10–20% correction in equity markets
• During low investor sentiment (but strong fundamentals)

Caution:

If you’re unsure about timing, consider a Systematic Transfer Plan (STP) to move funds from debt to equity in phases.

EzyMoneyDeals Advantage:

• Lumpsum return calculators
• STP tools to reduce timing risk
• Fund performance insights to guide lump sum entries

Why Not Combine Both?

Smart investors use both:

• SIP for steady growth and discipline
• Lump sum during dips for higher returns

Example Strategy:

Continue ₹5,000 SIP + invest ₹1 lakh lump sum after a market correction
Grow long-term wealth
Take advantage of short-term opportunities

How EzyMoneyDeals Helps You Decide Smartly