Which is better, one time investment or recurring investment?

 There isn't a single answer to which is better, a one-time investment or recurring investment. It depends on your circumstances and financial goals. Here's a breakdown of both methods:

One-time investment (lump sum)

• Pros: Potentially higher returns: If you invest a larger sum upfront, you have more money working for you in the market, which could lead to greater returns over time. May take advantage of a good opportunity: If you see a good investment opportunity, a lump sum allows you to act on it immediately.
• Cons: Market timing: It's difficult to predict the market perfectly. Investing a large sum at the wrong time could mean lower returns. Requires a larger amount of capital upfront: Not everyone has a significant amount of money readily available for investing.

Recurring investment (SIP or Rupee-cost averaging)

• Pros: Lower risk: By spreading out your investment over time, you benefit from dollar-cost averaging. This means you buy more shares when the price is low and fewer shares when the price is high, potentially lowering your overall investment cost. Discipline and consistency: Regular contributions help build a savings habit and investment discipline. Easier to manage: Smaller, regular investments are often more manageable for your budget.
• Cons: Less money working for you: Since you're investing smaller amounts, you have less money in the market that could be generating returns.

Here are some things to consider when deciding which method is right for you:

• Investment horizon: Are you saving for a short-term goal (like a down payment on a car) or a long-term goal (like retirement)? For long-term goals, recurring investments can be beneficial.
• Risk tolerance: How comfortable are you with market fluctuations? Recurring investments can help reduce risk by averaging out costs.
• Financial situation: Do you have a large sum available for a lump sum investment, or are you on a tighter budget that would be better suited for recurring contributions?

Ultimately, the best approach might be a combination of both. You could invest a lump sum if you have the funds and then continue with recurring investments to benefit from rupee-cost averaging.