In many cases, one-time investments may either require expert counsel, or a thorough knowledge of the market. This is a simple plan, and you do not require to have a thorough knowledge of the market. As such, this investment could be a major loss, if the market crashes. One-time investment is not cushioned against market volatility. SIP can protect your investment from any potential market crash. The investment yields fixed income, which is lower than SIP. Investment yields higher returns because of the power of compounding.Įarns better during market highs. Sudden withdrawal might attract charges, penalties, or might just not be allowed.Įarns better during market lows. If you are confused between one-time investment or SIP, refer to the comparison chart below:Ĭan be withdrawn anytime without any monetary loss. One-time investment vs SIP: Which is better? In other words, a small amount invested for a long time fetches better returns than a one-time investment.īeing an open-ended fund without any tenor, you can withdraw your SIP Investment as a contingent fund. SIP operates on the principle of receiving compound interest on your investments. This can help you beat the inflated costs. Just remember to have a long investment horizon for wealth creation.Īs compared to traditional fixed deposits or recurring deposits, SIP provides double the returns. The amount of investment is also flexible: it can be increased or decreased. You can either withdraw the full or a partial amount from your investment, without incurring any losses. These are open ended funds to be withdrawn as per your choice, meaning they do not have a fixed tenor. Long-term commitments like investing in instruments like Public Provident Fund or Unit Linked Insurance Plans can be avoided with SIP. SIP provides you with tremendous flexibility. This is because of the inherent feature of SIP, where at every market correction, you will buy more, reducing your cost of investment and higher gains. The unique feature of SIP is the Rupee Cost Averaging, where you buy more units when the market is low and buy less when the market is high. A SIP is not only simple and convenient to track, but also makes you save more. With SIP, you can start investing small amounts as small as Rs 500 each month and watch it grow. Here is a look at the advantages of investing in SIP: What is Dematerialization & It's Process.Difference Between Demat and Trading Account.Documents Required to Open a Demat Account.Aims, Objectives and Importance of Demat Account.What is the Sub-broker Program of IIFL?.
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