Slightly, if it goes in at the start of the year, because the money is invested earlier. But monthly SIPs reduce the risk of investing the whole year's amount at a market peak.
Yearly SIP Calculator
Investing once a year from a bonus or incentive? Project how annual instalments grow and compare with spreading the same amount across twelve monthly SIPs.
Yearly SIP value
₹19,65,458
Invested amount
₹10,00,000
Estimated returns
₹9,65,458
Monthly SIP of ₹8,333 would give
₹19,36,159
Difference
₹29,299
Yearly vs monthly SIP at the same yearly outlay
| Year | Yearly: value | Monthly: value | Difference |
|---|---|---|---|
| 1 | ₹1,12,000 | ₹1,06,744 | ₹5,256 |
| 2 | ₹2,37,440 | ₹2,27,027 | ₹10,413 |
| 3 | ₹3,77,933 | ₹3,62,564 | ₹15,369 |
| 4 | ₹5,35,285 | ₹5,15,290 | ₹19,995 |
| 5 | ₹7,11,519 | ₹6,87,386 | ₹24,133 |
| 6 | ₹9,08,901 | ₹8,81,309 | ₹27,592 |
| 7 | ₹11,29,969 | ₹10,99,825 | ₹30,144 |
| 8 | ₹13,77,566 | ₹13,46,055 | ₹31,511 |
| 9 | ₹16,54,874 | ₹16,23,513 | ₹31,361 |
| 10 | ₹19,65,458 | ₹19,36,159 | ₹29,299 |
- 1 instalments a year, compounding at the instalment frequency; monthly comparison uses the same total money per year.
How the Yearly SIP Calculator works
An annual SIP invests a lump sum once every year — typical for bonus payouts or PPF-style discipline applied to mutual funds. Each instalment is invested at the start of the year and compounds annually here.
The comparison shows the same yearly money spread as a monthly SIP. Investing at the start of the year is slightly ahead because all the money starts working from month one.
FV = A × [ ((1+i)^N − 1) / i ] × (1+i)
- A
- yearly instalment
- i
- annual return ÷ 1
- N
- years × 1
Worked example
- Yearly investment: ₹1,00,000
- Expected return (p.a.): 12%
- Time period: 10 Yr
₹1 lakh invested at the start of each year for 10 years at 12% grows to about ₹19.65 lakh on ₹10 lakh invested. The same money as a ₹8,333 monthly SIP reaches about ₹19.4 lakh.