
SIP or lumpsum when switching from one fund to another?
When you decide to switch funds because your scheme is doing poorly, the dominant question in your mind is this: should I do a lumpsum switch or use SIP? What if you reinvest your money at one go, and there’s a correction? Since it’s a new investment in a new fund, shouldn’t you stagger your investments to avoid poor market timing? If you stagger the reinvestment, wouldn’t you be getting an additional rupee cost averaging benefit?