SIP or lump sum?

A systematic investment plan invests a fixed amount at regular intervals. A lump sum invests everything at once. For money arriving monthly, a SIP is the only option. For money you already have, the choice is between averaging your entry and taking market exposure immediately.

What it means

A systematic investment plan invests a fixed amount at regular intervals. A lump sum invests everything at once.

Why it matters to a household

For money arriving monthly, a SIP is the only option. For money you already have, the choice is between averaging your entry and taking market exposure immediately.

Where it trips people up

Believing a SIP protects you from losses. It averages your purchase price; it does not stop a portfolio falling.

In an Indian household

Historically, lump sums invested at random points have often outperformed staggered entry — but a SIP is easier to keep going through a bad year, and continuing is what matters.

Where FamTally comes in

FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.

Stop doing this in a spreadsheet

FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.

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Questions people ask

SIP or lump sum?

A systematic investment plan invests a fixed amount at regular intervals. A lump sum invests everything at once.

Why does it matter?

For money arriving monthly, a SIP is the only option. For money you already have, the choice is between averaging your entry and taking market exposure immediately.

What do people usually get wrong?

Believing a SIP protects you from losses. It averages your purchase price; it does not stop a portfolio falling.

Is there anything India-specific?

Historically, lump sums invested at random points have often outperformed staggered entry — but a SIP is easier to keep going through a bad year, and continuing is what matters.

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