Lumpsum vs SIP
Same total investment, two routes. Compare a one-time lumpsum against a monthly SIP for the same amount.
Same total split into lumpsum vs equal monthly SIP
Equivalent monthly SIP
₹10,000
₹12,00,000 ÷ (10 × 12 months)
Lumpsum FV
₹37.27 L
₹37,27,018
SIP FV
₹23.23 L
₹23,23,391
Difference
₹14.04 L
Lumpsum wins by ₹14.04 L
Year-by-year value
Which one for you?
Lumpsum if…
- • You have idle cash earning ~4% in savings
- • Market is reasonably valued (not at a clear top)
- • You have a 7+ year horizon to ride out volatility
- • You have other emergency funds in place
SIP if…
- • You earn a monthly salary
- • You want rupee-cost averaging
- • You can't time the market (most of us)
- • You want to build discipline
How this is calculated
In theory:a lumpsum invested today earns returns on the full amount from day one, so at a constant return rate it always finishes ahead of a SIP for the same total — that's what the chart shows.
In practice:markets aren't constant. SIPs hedge timing risk through rupee-cost averaging — you buy more units when prices fall and fewer when they rise. For most investors without ₹10 L+ idle cash, SIPs are the right answer.
Equity SIPs work best over 7+ year horizons through full market cycles.
Want to actually invest this plan?
Talk to a SEBI / AMFI-registered advisor — zero fees from your side.
Frequently asked questions
Is lumpsum or SIP better?
In a steadily rising market a lumpsum invested early can outperform, because more money compounds for longer. In volatile or falling markets a SIP wins through rupee-cost averaging. SIPs also suit those investing from monthly income rather than a windfall.
When should I prefer a lumpsum?
A lumpsum makes sense when you have a windfall (bonus, maturity, sale proceeds), a long horizon, and can tolerate short-term volatility. Many investors deploy a lumpsum gradually via an STP (Systematic Transfer Plan) to reduce timing risk.
Does this account for market timing?
No calculator can predict market paths. This tool assumes a constant annual return for both options to isolate the structural difference; real outcomes depend on the actual return sequence.