How does SIP compare with other investment options?

SIP	STP	Lump Sum
Regular investment frequency	Regular investment frequency	One time investment
Entry load of 2.25% or nil if directly invested	Switching charges on the amount transferred	Entry load of 2.25% or nil if directly invested
Useful if you don’t have any investment with the fund house	Helps to switch your existing investments with a fund house to maximize returns	Useful if you are making a first time investment or want to add on to your investment
Allows you exposure to equities	Gives you exposure to both debt and equities.	Allows exposure only to equities
Can be started with amounts as low as Rs 100	Require high amounts as most liquid funds expect an investment of at least Rs. 1 lakh	Minimum amount required is Rs 5000 for the first investment and Rs 1000 for subsequent investment