lumpsum alternative to SIP

POSTED BY anon smith ON August 19, 2012 12:06 am ONE COMMENT


I am in the beginning stages of learning about different types of investments. From whatever I found, I can infer the following advantages of SIP:

1. It’s not necessary to spend any time worrying about things like timing the market, diversifying a portfolio, etc., we can blindly invest, provided it’s a decently popular SIP fund.

2. It’s almost no risk for the long term (10-15 years), but still gives good returns (about 12-15%)

3. Equity SIP is tax free in India

Problem faced:

In my financial planning, there are many times where there’s a big lumpsum for 2-3 year spans at times and the account gets much smaller at all other times. I was wondering if there are other vehicles similar to SIP, which lets you invest a lumpsum and possibly get better gains later(maybe 10-15 years later), with the same advantages outlined above.  

Please correct me if I’m wrong. Thanks in advance for the help.

One reply on this article “lumpsum alternative to SIP”

  1. Dear Anon, an alternative to SIP is VIP – Variable Investment Plan. Regarding your intermittent lump sum amount, you may invest the same in your existing SIP funds if the remaining time frame justifies the lump sum injections.



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