Investments
Lumpsum Calculator
See how a one-time investment grows with compounding. Compare it against an equivalent SIP to make a smarter investment choice.
Maturity Value
₹15,52,924
Invested
₹5.00 L
Returns
₹10.53 L
Wealth Ratio
3.11x
CAGR
12%
vs equivalent SIP (₹4,167/mo)
Lumpsum
₹15.53 L
SIP
₹9.68 L
Lumpsum wins by ₹5.85 L — investing early benefits from full compounding
Lumpsum vs SIP growth over 10 years
Frequently asked questions
When is lumpsum better than SIP?
Lumpsum investing is better when you invest at a market low — the full amount compounds from day one. SIP is better when you invest regularly over time and want to average out market timing risk. If markets are at a high, SIP is generally safer.
Is LTCG applicable on lumpsum mutual fund gains?
Yes. For equity mutual funds, long-term capital gains (LTCG) above ₹1.25 lakh are taxed at 12.5% (Budget 2024). For debt funds, gains are taxed at your slab rate regardless of holding period.
What is the minimum lumpsum investment in mutual funds?
Most equity mutual funds allow lumpsum investments starting from ₹1,000 to ₹5,000. Some NFOs may require higher minimums. There is no maximum limit.
How does compounding work for lumpsum?
With lumpsum, your entire principal starts compounding from Day 1. Each year, returns are generated on both the original amount and all previously earned returns. This is why starting early makes a huge difference — the graph shows this "hockey stick" curve.
What is lumpsum investing?
A lumpsum investment means deploying a large amount of money into a mutual fund or investment in a single transaction, rather than spreading it over time through a SIP. For example, investing ₹5 lakh at once instead of ₹10,000 per month for 50 months.
Lumpsum investing works best when you have a windfall — an annual bonus, inheritance, proceeds from selling an asset, or a tax refund. Since the entire amount is invested from day one, it benefits from compounding on the full corpus immediately. This gives lumpsum an edge over SIP in rising markets.
The risk with lumpsum is timing. If you invest at a market peak, your returns in the short term may be poor. For this reason, many investors use a Systematic Transfer Plan (STP) — parking the lumpsum in a liquid fund and transferring a fixed amount to equity funds monthly.
Lumpsum vs SIP: which grows more?
For the same amount invested over the same period, lumpsum typically generates higher absolute returns in a consistently rising market because the full capital compounds from day one. However, SIP generates better risk-adjusted returns because it averages out market volatility.
Want a detailed comparison? Read our SIP vs Lumpsum guide or try the SIP Calculator.