Which mutual funds investment route is better SIP or regular direct investment.?

hi,
I am able to invest 5k in any particular mutual fund quarterly for 3 yrs and same thing i can do through SIP route also.. so I wud like to know which route is better.??

SIP is beneficial if the markets are volatile and you have a different kind of oppurtunity every month to enter into the fund.

But if u can purchase with a regular direct investment on a day when the markets have crashed, then it would be the best oppurtunity to gain from the funds.

SIP (systematical investment plan) is better in the long run as by saving little regularly you collect a huge sum later on

if you go for equity linked saving schemes(elss) types of mutual funds,or sip, as far as your taxes are concern,will be same,
and as far as averaging the market goes,,,it depends on your luck, maybe now you invest in low and get high or vice versa, but as the investment is 5k,so i suggest,go for a monthly sip,that was you can atleast reduce volatility and have a good average price, this way,you won't get a windfall but rather you won't go broke either.

I would recommend using ETF's or DRIP Plans instead of mutual funds.

About 75% of all mutual funds under perform the market. All of them have management fees, and some have sales loads.

There are some good funds to invest in, but you have to know what you are doing.

ETF's are basically the same as mutual funds, except they have an overall lower fee rate. They are also more liquid.

Another option you might consider, is a DRIP Plan.

They are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

The best part is you get solid annual returns from well-known, safe Blue Chip companies like: McDonalds, General Electric, Pfizer, Walmart, US Bancorp.......etc........

They are inexpensive to start and maintain, and your dividends are reinvested for free.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down.

These are just suggestions. Please look at all of you options and do your research.

Good Luck