Monthly SIP or Lumpsum lump sum bet! Which method do smart investors choose to earn a profit? No one will tell this secret.

Many people want to earn better profit by investing in the market, but do not invest money in it due to the fear of market risk. They are afraid that their money may sink. Mutual Funds are a very good option for such people. This market-linked scheme is considered to have less risk than investing money directly in stocks. In the long run, a very good fund can be created through mutual funds. But there are two ways to invest in it. One is SIP i.e., Systematic Investment Plan, and the other method is Lumpsum. Both methods have their advantages and disadvantages. Which method should you choose to earn profit? To understand this, you have to understand their advantages and disadvantages.

SIP is a very popular way of investing in mutual funds. The biggest advantage of SIP is that you can invest a fixed amount every month according to your convenience. You can start it with Rs 100 as well.

Another advantage of SIP is that it gives you flexibility, that is, you can increase or decrease the investment over time according to your income, you can stop it in between if needed and you can withdraw money anytime.

The advantage of SIP is that you invest in it amidst all the ups and downs of the market. This gives you the benefit of rupee cost averaging. When the market falls, you buy more units and when the market rises, you buy fewer units, which reduces the average cost of your investment. Due to this, your investment keeps getting averaged.