SIP or Lumpsum? What should you go for?

Coronavirus is now the fear of all over the world. Due to it, people are dying and even the markets are seeing the fall downs. Talking about the Indian market, from the past week, it has been falling down too. On 12th March, the downfall of 20% from the peak has been witnessed in Indian markets. Iit is now hefty 16% lower than the time high.

With an interview with Mint by 12th March, CIO equities of Invesco Mutual Fund, Taher Badshah told that the valuations of market were 20% below than the long term average after having the trade at 20% premium for many years. If we talk about it in other words, it is the best time to buy, invest.

But if you are looking to entering in the market as a mutual fund investor. There are two ways for doing it. The one is to invest a lump sum amount and the other one is to set up as a Systematic investment plan, SIP which will ask you to invest a fixed amount in the market every month. On the same, The found of Plan Rupee Investment Services, Amol Joshi said- “Normally I would recommend an SIP due to averaging and cashflow reasons,”

“However given a correction of such magnitude (15-20%), an aggressive investor should do a lumpsum investment. A moderate investor can put in money at 2-3 tranches. If you have existing SIPs, continue them,” he added.

So if you have money to invest and if you are thinking to invest, it is the right time to invest in SIP through equity mutual fund.