If you already have the money and a long horizon, lumpsum has a higher expected value because it is invested earlier. SIP reduces timing risk. A common compromise is to invest a lumpsum over 3–6 months via STP.
Lumpsum Calculator
Project what a one-time investment becomes over 1–30 years at any expected return, see its inflation-adjusted value, and compare it with investing the same money as a SIP over the same period.
Invested amount
₹1,00,000
Estimated returns
₹2,10,585
Total value
₹3,10,585
Value in today's rupees
₹1,73,429
Same money as ₹833/month SIP
₹1,93,616
Year-by-year growth
| Year | Value | Returns | In today's ₹ |
|---|---|---|---|
| 1 | ₹1,12,000 | ₹12,000 | ₹1,05,660 |
| 2 | ₹1,25,440 | ₹25,440 | ₹1,11,641 |
| 3 | ₹1,40,493 | ₹40,493 | ₹1,17,961 |
| 4 | ₹1,57,352 | ₹57,352 | ₹1,24,638 |
| 5 | ₹1,76,234 | ₹76,234 | ₹1,31,692 |
| 6 | ₹1,97,382 | ₹97,382 | ₹1,39,147 |
| 7 | ₹2,21,068 | ₹1,21,068 | ₹1,47,023 |
| 8 | ₹2,47,596 | ₹1,47,596 | ₹1,55,345 |
| 9 | ₹2,77,308 | ₹1,77,308 | ₹1,64,138 |
| 10 | ₹3,10,585 | ₹2,10,585 | ₹1,73,429 |
- Lumpsum compounds annually. The SIP comparison spreads the same amount evenly across every month of the tenure.
Check against real mutual fund returns
The projection above assumes a constant return. Below is what popular schemes actually delivered using their NAV history — and you can run the same calculation on any fund.
Choose a fund
Parag Parikh Flexi Cap Fund Direct-Growth
How the Lumpsum Calculator works
A lumpsum investment is a single deposit left to compound. Its future value depends only on the amount, the rate and the time — the classic compound-interest formula.
The SIP comparison answers "should I invest it all now or stagger it?" Mathematically a lumpsum wins whenever returns are positive, because every rupee is invested from day one. SIPs win psychologically and when markets fall after you invest.
FV = P × (1 + r)^n
- P
- one-time investment
- r
- annual return
- n
- years
Worked example
- One-time investment: ₹1,00,000
- Expected return (p.a.): 12%
- Time period: 10 Yr
- Expected inflation (p.a.): 6%
₹1 lakh at 12% for 10 years becomes about ₹3.1 lakh — ₹2.1 lakh of it return. In today's money (6% inflation) that is worth about ₹1.73 lakh. The same ₹1 lakh drip-fed as an ₹833 monthly SIP would end near ₹1.94 lakh.