SIP explained
With a SIP, you invest a predetermined amount at regular intervals. This approach can be useful when your income arrives regularly and you want to invest progressively.
Lump-sum investing explained
A lump-sum investment places a larger amount into an investment at one time. It may be relevant when you already have a substantial amount available to invest.
The role of market movement
The eventual outcome depends on the investment's actual performance and the timing of contributions. A SIP does not remove investment risk, and a lump-sum investment does not automatically produce higher or lower returns.
A simple comparison
If ₹1,20,000 is available, you could conceptually invest it at once or spread it as ₹10,000 per month for 12 months. These approaches create different cash-flow and market-exposure patterns.
Which numbers should you compare?
Compare total amount invested, estimated future value, investment duration and the assumptions used for the return. For a fair comparison, keep the total investment and time horizon clear.