What is Lumpsum?
A lumpsum investment is when you invest a large amount all at once in a mutual fund, as opposed to SIP where you invest monthly. Lumpsum works best when markets are low and you have a large corpus to deploy.
The power of compounding makes lumpsum investments extremely effective over long periods. A ₹5,00,000 investment at 12% CAGR becomes ₹15.5 Lakhs in 10 years and ₹48.2 Lakhs in 20 years.
Formula
Future Value = P × (1 + r)^t
Where: - P = Principal amount invested - r = Annual rate of return (as decimal) - t = Time in years
For ₹5,00,000 at 12% for 10 years: FV = 5,00,000 × (1.12)^10 = ₹15,52,924
How to use this Lumpsum Calculator?
1. Enter the one-time investment amount. 2. Set your expected annual return rate. 3. Choose the investment horizon in years. 4. Compare lumpsum vs SIP returns for the same period.