How do lumpsum, SIP, and STP mutual fund investments differ?
A lumpsum investment means putting your entire capital into a mutual fund at once, exposing the whole sum to market fluctuations from day one. Meanwhile, a Systematic Investment Plan (SIP) allows you to invest a set amount at regular intervals, which helps lower market risks. Under a Systematic Transfer Plan (STP), investors put money into a source mutual fund and slowly shift it into an equity mutual fund.
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