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.