I found out that the amount for capital addition via Lumpsums using “Invest More” option is significantly higher when compared to SIPs. What is the reason for this difference ? Is there a logic to this ?
The invest more option lets you add capital in lots / lump sum where the capital is distributed across the portfolio based on the weights. Also the minimum investment amount is loosely be based on the largest priced stock in the portfolio. SIPs allow you to gradually build capital into the portfolio by investing in limited no.of stocks in the portfolio in each schedule.
This article will throw light on the mechanism of SIPs and the difference between SIPs and Lump sum from the perspective of WeekendInvesting portfolios. Please watch it and let us know in case you have any questions further.
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