A lumpsum investment is a one-time deposit into a mutual fund, rather than spreading it out monthly like a SIP. This calculator shows how that single investment grows through compounding over your chosen period, useful when you've received a bonus, matured FD, or other windfall you want to put to work.
Worked Example:
Lumpsum = ₹1,00,000 | Return = 12% p.a. | Period = 10 years
M = 1,00,000 × (1.12)¹⁰
Maturity = ₹3,10,585 (wealth ratio 3.11x)
Is lumpsum investing riskier than SIP?▾
Yes, timing risk is higher, a lumpsum invested right before a market fall takes the full hit at once, while a SIP spreads that risk across many purchase dates (rupee cost averaging). Lumpsum works best when you have conviction about long-term growth and can tolerate short-term volatility, or when investing in a fund with a longer horizon (7+ years) that smooths out timing risk.
When should I choose lumpsum over SIP?▾
Lumpsum makes sense when you receive a one-time amount, a bonus, an FD maturity, an inheritance, or proceeds from selling an asset, and don't want it sitting idle. If you're unsure about market timing, some investors split the amount: invest part as lumpsum and stagger the rest via SIP over 6-12 months (called a "systematic transfer plan" when done from a debt fund).
How is lumpsum return different from SIP return?▾
A lumpsum grows via simple compounding (M = P × (1+r)ⁿ) since the full amount is invested from day one. A SIP grows via a series of smaller investments compounding for different lengths of time, so its effective annualised return (XIRR) can differ from the fund's stated CAGR even at the same expected return rate.