Difference Between SIP and Mutual Fund

SIP in mutual funds enables regular, small investments, harnessing compounding’s power and mitigating market volatility, making it a favored tool for long-term wealth creation.

SIP In Mutual Funds

Mutual funds pool investors' funds for diversified investment in stocks and bonds, aiming to balance risk and returns.

Mutual Funds

SIP is disciplined, periodic investing in funds, while mutual funds allow lump-sum, diversified investments.

SIP Vs Mutual Fund

SIP enables gradual wealth growth over time, while mutual funds offer wealth accumulation through various investment modes, such as SIP or lump sum, depending on investor choice.

Worth Of Investment

SIP involves fixed, regular investments chosen by the investor, while lump sum in mutual funds means investing a large amount at once.

Investment Vehicle

SIPs reduce investment risk via Rupee Cost Averaging, buying more units when markets are low. Mutual funds investing in diversified assets are still subject to market volatility.

Market Fluctuations

SIP and mutual fund fees depend on the chosen plan and provider, including entry/exit fees, expense ratios, and management expenses, which accumulate over time.


SIPs and mutual funds ensure easy withdrawals with fast bank transfers, typically processed in two days for high liquidity.

Withdrawal Process

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