In your article you have shown how an SIP in a volatile market gave Rs.3,000 (4%) more than a lump sum investment. That is all very fine and logically explainable. And also the easiest scenerio.
But I have my own view which is little beyond the conventional teaching and this is specially for those who have a lumpsum of money to invest in MF (considering they are already aware of their risk factor).
We have already laid out that SIP is benificial only if rhe market is volatile and not if the market is only rising.
My suggestion to those who have lumpsums is to invest at any time and not wait to time the market, but they should book profits when the market get exuberant and reinvest it when there are any dips. The signals when market run ahead are more obvious and when we see dips of 5-10% then reinvest the gains. This will improve your gains although it will also help the taxman too. Such proposition is for those who monitor their investments and have atleast some interest in the markets and keep abreast with the trends.
