Every person wants to make their future financially secure. For this, people save or invest a part of their earnings for the future. However, some people don’t know where and how to invest. They don’t know which method is better for building a large fund – SIP or lump sum? Therefore, today in the Your Money column, we will learn that- Question- What is SIP? Answer- SIP i.e. Systematic Investment Plan can be understood through pointers- Question- What is lump sum? Answer- Understand it through pointers- Question- What is the difference between SIP and lump sum investment? Answer- These are two different methods of investment. Let’s understand through graphics- Question- Which option is better in terms of returns? Answer- Returns completely depend on market conditions and the investment time period. Understand the complete matter through pointers- Question- What things should be kept in mind while doing SIP? Answer- Before starting SIP, the investment goal should be clear, such as- What other things should be kept in mind, see in the graphic- Question- What precautions are necessary when making lump sum investments? Answer- For lump sum investment, it is necessary that the person should have surplus funds, which can be kept invested for a long time. Before lump sum, it is necessary to know all these things- Question- Can we do both SIP and lump sum in the same fund? Answer- Yes, this is a good investment method. In this, a person can continue their regular SIP. Then whenever there is panic (decline) in the market, they can put in additional money. This is called the ‘Buy on Dips’ technique. This brings down the NAV (Net Asset Value) of the portfolio significantly and the returns received in the future increase manifold. Question- How to choose the right investment duration? Answer- Understand the answer through these pointers- Question- For how long should one invest in SIP or lump sum? Answer- This completely depends on the person’s investment goals and risk-taking capacity. However, there are some general rules that can help in making the right decision. See in the graphic- Question- What is STP i.e. Systematic Transfer Plan and how does it help in investment? Answer- STP can be called a hybrid model of lump sum and SIP. Question- How should a new investor start? Answer- Understand the answer through pointers – Post navigation Ramayana’s ₹4,000 crore gamble; will makers recover costs?:Highest-grosser Dangal’s lifetime collection stands at over ₹2,000 cr
