SIP vs. lumpsum: what actually matters more than the debate

Every few months, the SIP-vs-lumpsum debate resurfaces with a fresh set of backtested charts proving one side right. Both sides are usually correct for the wrong reason.

The honest answer: it depends far less on market timing than on cash flow. If you're investing a monthly salary, a SIP isn't a strategy choice — it's the only mechanism that matches how the money arrives. If you've received a bonus or inheritance, the question becomes about volatility comfort, not raw expected return.

What we actually recommend to clients: SIP your regular savings, and stagger a windfall into the market over three to six months rather than either dumping it all in on day one or drip-feeding it over three years. It's a compromise, and compromises rarely make good headlines — but they make good outcomes.