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Compare · SIP vs Lumpsum
SIP vs Lumpsum
Drip the same money in monthly, or invest it all at once. See which wins at your expected return.
FV(SIP) vs FV(Lumpsum) · equal total outlayA SIP spreads your investment across many months, so each rupee compounds for a different length of time. A lumpsum puts the entire amount to work on day one, giving it the longest possible runway. When markets rise steadily, the lumpsum usually wins because the money is invested earlier. SIPs win on discipline, rupee-cost averaging, and when you don’t have a large sum sitting idle.
Frequently asked
- Is SIP or lumpsum better?
- If you already have the full amount and the market trend is upward, a lumpsum typically ends with a larger corpus because the money compounds for longer. If you earn and invest monthly, a SIP is the practical choice and reduces timing risk through rupee-cost averaging.
- Why does the lumpsum often show a higher value here?
- This tool assumes a constant annual return. Under a steady return, money invested earlier compounds for more years, so the upfront lumpsum edges ahead. Real markets are volatile, which is exactly why many investors prefer SIPs.
- What return should I assume?
- Equity mutual funds in India have historically delivered roughly 11–13% over long periods, but past performance is not a guarantee. Use a conservative figure and treat the output as an estimate, not a promise.