SIP vs Lump Sum: Which gives better returns for a 5-year horizon?

Historical data from Nifty 50 shows that lump sum has outperformed SIP in most 5-year periods in India due to equity market tendency to grow over long periods. However, SIP reduces volatility impact and emotion-based decisions. For 5 years, lump sum in a diversified equity fund may give better returns if you can handle short-term volatility.

Historical data from Nifty 50 shows that lump sum has outperformed SIP in most 5-year periods in India due to equity market tendency to grow over long periods. However, SIP reduces volatility impact and emotion-based decisions. For 5 years, lump sum in a diversified equity fund may give better returns if you can handle short-term volatility.

Historical data from Nifty 50 shows that lump sum has outperformed SIP in most 5-year periods in India due to equity market tendency to grow over long periods. However, SIP reduces volatility impact and emotion-based decisions. For 5 years, lump sum in a diversified equity fund may give better returns if you can handle short-term volatility.

A hybrid approach works well: invest 50% as lump sum and the remaining 50% over 6-12 months via SIP. This gives you market exposure while allowing some rupee cost averaging. For a 5-year horizon, a large-cap or multi-cap fund would be appropriate.

A hybrid approach works well: invest 50% as lump sum and the remaining 50% over 6-12 months via SIP. This gives you market exposure while allowing some rupee cost averaging. For a 5-year horizon, a large-cap or multi-cap fund would be appropriate.

A hybrid approach works well: invest 50% as lump sum and the remaining 50% over 6-12 months via SIP. This gives you market exposure while allowing some rupee cost averaging. For a 5-year horizon, a large-cap or multi-cap fund would be appropriate.