Which is better, investing in mutual funds through SIP or lump sum?

Both SIP and lump sum have their own advantages and disadvantages. Investing through SIP is suitable for those who want to invest a small amount of money regularly and build a corpus over a longer period of time. It also helps in averaging out the cost of investment over a period of time, thereby reducing the impact of market volatility. On the other hand, investing through a lump sum is suitable for those who have a large sum of money to invest and want to gain from the market movement over a shorter period of time.