SIP or lump sum? What the data says
Aeterna Wealth · figures from our fund data, updated 5 Nov 2026
If the money is already in hand, a lump sum usually ends higher because more of it is invested for longer; a SIP, or a lump sum spread in over 6 to 12 months through an STP, lowers the risk of investing everything just before a fall. For money that comes in monthly, a SIP is simply the natural fit.
What happened to SIPs started at the top
Even investors who started at the last market high have mostly recovered: 31 of 32 large cap funds; 29 of 30 mid cap funds; 30 of 31 small cap funds; 38 of 41 flexi cap funds show SIPs started then worth more than the money put in, though the index itself is still below that high. Instalments made while prices were lower bought more units.
Time in the market matters more than timing
Across large cap funds with 10 or more years of history, the middle fund made money in 98% of all 3-year holding periods since 2006, through the 2008 and 2020 crashes. A ₹10,000 monthly SIP over the last 10 years in the middle-ranked flexi cap fund is worth about ₹23.5 lakh today, on ₹12 lakh put in.
A simple rule
- Monthly income: SIP, and step it up each year with your salary.
- A bonus, inheritance or property sale: invest part at once and spread the rest over 6 to 12 months with an STP from a liquid fund.
- Money needed within 3 years: neither; equity is the wrong place for it.
Common questions
Is SIP better than lump sum?
Not always. A lump sum has more time in the market; a SIP spreads the risk of a badly timed start. The right choice depends on whether the money is already in hand.
What is an STP?
A systematic transfer plan moves a fixed amount every week or month from a liquid or debt fund into an equity fund, so a lump sum is invested gradually.
Should I stop my SIP when markets fall?
Usually not. SIP instalments in a fall buy more units, which is what helps a SIP recover before the market does.
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General information, not investment or tax advice for your situation. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.