Put a little or all the money together every month? Know who will give big returns

New -delhi. If you are considering investing in mutual funds, then it is the biggest demand-whether it compiles a solid amount (lumpsum), or put a little money (SIP) every month (SIP)? Generally, SIP is more popular with small investors because it keeps the habit of investing and is not on the bag at a time. But the real question is: Who benefits more from less investment – sip of lumpsum? The answer to this question is not that simple, because in this many factors such as market movements, your investment time and your risk capacity work. In this story we will understand through an easy example that there can be more financial benefit in a long time than which format and which method will be beneficial to you. Reading problems also increased on Dwarka Expressway, after which the traffic department up to this date, what is the reason? Let us understand it with an easy example, the story of two friends – both Rahul and Deepak Rahul and Deepak thought in January 2020 in mutual funds to invest in mutual funds. The purpose of both was to earn good returns after five years. Rahul had £ 1 Lakh, which he at the same time put a mutual fund in the few. Deepak did not have a large amount at the same time, so he started a £ 2,000 sip – that is, £ 2,000 each month. After 5 years, that is, in December 2024, the condition of both £ 1 lakh was at an estimated return of 12% annually, up to £ 1.76 lakh. Deepak applied £ 1.2 Lakh -Sip in 5 years (£ 2,000 × 60 months). He received £ 1.93 Lakh (taking into account 13.5% annual average return). So who has benefited more? Rahul applied £ 1 Lakh and earned £ 76,000. Deepak applied £ 1.2 Lakh and earned £ 73,000. That is, Deepak has put more money, but received fewer returns. Note on Deepak took a small amount out of his pocket each month, which made a large fund while investing less and received a better average return in market fluctuations. Think now – if Deeppak of £ 2500 SIP would have been and laid a total of £ 1.5 Lakh, his return would have been more than Rahul. Monetary benefit more? If the market is below, Lumpsum can be of great advantage, as units bought at the time give more returns. If the market is in and downhill, the SIP gives a better average and the risk is also reduced. SIP seems to be more advantageous for small investors as it falls on the bag and gradually becomes a big fund. What has learned? If you have a large amount together and the market is down then place lumpsum. If there is regular income and you want to invest in discipline, then SIP is best. The benefit of both depends on time, market and investor’s profile.