SIP and Lumpsum investment are two ways to go about investing in Mutual Funds:
SIPs (Systematic Investment Plans) are a feature of Mutual Funds that lets investors schedule their investment in specific amounts and predefined intervals.
For Eg. If an investor wants to invest an amount of ₹60,000 with an AMC scheme over a year; They may wait to amass the required amount or start investing with an SIP of ₹5,000 every month. Investors who tend to have a regular cash flow may consider SIPs as an apt investment avenue.
Lumpsum refers to a method of investing in Mutual Funds where the investor deposits the amount they intend to invest at one go. Unlike SIPs there is no scheduling for monthly/periodic deposits and the minimum investment amounts for Lumpsum deposits also tend to be higher than those for SIPs. Investors with higher funds at their disposal but at irregular intervals, may consider investing in Lumpsum.