There are different investment modes available for mutual funds. Let's find out each investment mode and its uses and applicability.

1. Lumpsum: This mode is used when investors want to invest ad hoc amounts in the market as and when they want. Recommended when market valuations are attractive.
2. SIP: Systematic Investment Plan or SIP is a process of doing periodic investments and generally used by people who invest from their salary. salary. monthly Helps in averaging out the market ups and downs.

3. STP: Systematic Transfer Plan or STP allows periodic transfer of investments from one fund to another. Generally used when investors don't want to invest huge sums as lumpsum into equity. Investors 'park' money in debt funds and then do an STP into equity funds.

4. Switch: Switch is an ad hoc transfer of investment from one mutual fund to another. Generally used to take advantage of market's extreme movements and maintain asset allocation.

DISCLAIMER: This blog is solely for educational purposes and not to offer any investment advice. Please do your own research or consult a financial advisor before making any investment decisions.