{"id":531,"date":"2018-06-28T05:23:40","date_gmt":"2018-06-28T05:23:40","guid":{"rendered":"https:\/\/myfintree.com\/blog\/?p=531"},"modified":"2018-11-20T09:41:37","modified_gmt":"2018-11-20T09:41:37","slug":"for-salaried-persons-sip-or-lump-sum","status":"publish","type":"post","link":"https:\/\/myfintree.com\/blog\/for-salaried-persons-sip-or-lump-sum\/","title":{"rendered":"For salaried persons: SIP or lump-sum?"},"content":{"rendered":"

For salaried persons: SIP or lump-sum?<\/strong><\/span><\/a><\/h1>\n

Advantages and disadvantages of invest in go (lump sum) or over a number of years, by way of a systematic investment plan (SIP)<\/p>\n

Once you decide to invest in a mutual fund scheme, decide how you\u00a0want to invest in it. Do you want to invest everything at one shot (lump-sum) or do you want to invest over a number of years, by way of a\u00a0systematic investment plan (SIP)?<\/p>\n

Cash flow<\/strong><\/span><\/p>\n

Salaried people usually get their salaries every month. It is a fixed\u00a0cycle. A non-salaried person\u2019s income is irregular. For instance, if\u00a0you own a hotel, your income will not be the same every month. As\u00a0SIPs mandate investments at fixed intervals, salaried persons can\u00a0meet SIP commitments better than non-salaried persons.<\/p>\n

SIP<\/strong>: good<\/strong><\/span><\/a><\/p>\n

Lump sum: <\/strong>not good<\/strong><\/span><\/a><\/p>\n

Starting out<\/strong><\/span><\/p>\n

If you are starting your career, typically you would want to enjoy your financial independence and would spend a lot. But saving is also\u00a0important. And that discipline is often hard to come by. In such cases, SIPs are a good way to start investing. They encourage you to save a\u00a0decent sum of money every month, and see it grow.<\/p>\n

SIP: <\/strong>good<\/strong><\/span><\/a><\/p>\n

Lump sum: <\/strong>not good<\/strong><\/span><\/a><\/p>\n

Windfall gain<\/strong><\/span><\/p>\n

Most salaried individuals get bonuses, apart from their regular salaries. These bonus amounts can bring in a chunk of money. As SIPs are\u00a0relatively smaller installments, your bonus could be lying idle in your bank account for some time till it gets deployed fully. A lump sum gives\u00a0the option to invest the entire amount in one shot.<\/p>\n

SIP: <\/strong>not good<\/strong><\/span><\/a><\/p>\n

Lump sum: <\/strong>good<\/strong><\/span><\/a><\/p>\n

What\u2019s your goal?<\/strong><\/span><\/p>\n

While long-term investing is always recommended, sometimes we have short-term or medium-term goals such as buying a car in 3 years.\u00a0A lump sum investment ensures that your entire corpus gets to work right away. Your SIP will start to work progressively and may be too\u00a0slow for your short- to medium-term goals.<\/p>\n

SIP: <\/strong>not good<\/strong><\/span><\/a><\/p>\n

Lump sum: <\/strong>good<\/strong><\/span><\/a><\/p>\n

 <\/p>\n

Source Livemint<\/p>\n

<\/a><\/a><\/a><\/a><\/div>","protected":false},"excerpt":{"rendered":"

For salaried persons: SIP or lump-sum? Advantages and disadvantages of invest in go (lump sum) or over a number of years, by way of a systematic investment plan (SIP) Once you decide to invest in a mutual fund scheme, decide Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-531","post","type-post","status-publish","format-standard","hentry","category-mutual-fund"],"_links":{"self":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts\/531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/comments?post=531"}],"version-history":[{"count":4,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts\/531\/revisions"}],"predecessor-version":[{"id":537,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/posts\/531\/revisions\/537"}],"wp:attachment":[{"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/media?parent=531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/categories?post=531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myfintree.com\/blog\/wp-json\/wp\/v2\/tags?post=531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}