Dear all
SIP is not a product, its a method of investment, you can never claim sip is better over lump sum. Systematic investment plan is for someone who does not have a large sum with him and wishes to invest every month out of his earning. Now for him, instead of timing the market and investing for every 2 or 3 months its wise to start a monthly sip via ecs and sit back. By doing so every month a fixed amount automatically goes and it averages rupee cost averaging over a period of time. Lump sum is for someone who has a few lakhs in hand and wishes to invest. If his out look is long term he should invest in the market as a lump sum. He should not choose sip here, for it will take a very long time to be fully invested and by the time he would be fully invested he would have spent a few years also if the sum is big. That's not a wise decision. Hence my advice is for a regular savers go thro the sip route and those who have lump sum and long term outlook, go for lump sum investments( if you feel the market is highly prices you could go thro the stp route. my email id :
[email protected]
DAVID SOLOMON, AMFI CERTIFIED MUTUAL FUND ADVISOR