A Study on " Sip Vs Lumpsum Investments in Wealth Creation With the Refference of Sbi Muthual Fund"
Year: 2026
Type: preprint
Abstract: This study examines the relative merits of Systematic Investment Plans (SIPs) and lump sum investments, using SBI Mutual Fund as a case reference. It evaluates how each investment approach performs over the long run across different market conditions. SIPs promote financial discipline, rupee cost averaging, and reduced market-timing risk by spreading investments across multiple market cycles, whereas lump sum investments can generate larger returns during bull markets despite their heightened exposure to volatility. Using historical NAV data, return patterns, and risk-adjusted performance measures of SBI mutual fund schemes, the study finds that SIPs provide more consistent and reliable wealth creation, particularly during volatile periods, while lump sum investments perform better in bullish markets but suffer more in downturns. The findings suggest that investors with steady income and lower risk tolerance are better served by SIPs, whereas investors with surplus capital and higher risk appetite may benefit more from lump sum investments. Keywords: Systematic Investment Plan (SIP), Lump Sum Investment, Wealth Creation, SBI Mutual Fund, Rupee Cost Averaging, Risk-Adjusted Return, Compounding.
Author: Sriramoju, Sai Krishna
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7169657688
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