SIP vs Lumpsum Calculator
Compare the power of compounding between Systematic Investment Plans and One-time investments.
SIP Outcome
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Inv: ₹0
Lumpsum Outcome
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Inv: ₹0
Growth comparison over years
Analysis
- • SIP works best for salaried individuals to average out market volatility over time (Rupee Cost Averaging).
- • Lumpsum typically yields higher absolute returns if the market is entering a growth phase, as the entire capital compounds for longer.
- Note: Returns are indicative and strictly hypothetical. These calculations are hypothetical and assume fixed annual returns. Actual investment returns may vary based on market conditions.
Frequently Asked Questions
Which is better: SIP or Lumpsum?
SIP is generally better for regular earners who want to build wealth over time and minimize market volatility. Lumpsum is better when you have a large amount of excess cash upfront (like a bonus) and plan to hold your investments for a very long duration (7+ years) where daily volatility won't matter.
Why does lumpsum often show a larger final corpus?
In a lumpsum investment, your entire capital starts compounding from day one. In a SIP, only the first month's installment compounds for the full tenure, and subsequent installments compound for less time.