Lumpsum Calculator

Project how a one time mutual fund investment could grow over time.

Inputs

₹1.00 Lakh

%
years

Maturity value

₹0
Invested
₹0
Estimated returns
₹0
Wealth multiplier
3.11x

Projected growth

A lumpsum investment in a mutual fund means putting in your entire amount at once, rather than spreading it over months as you would with a SIP. The corpus grows through compounding, where earnings from earlier years themselves earn returns in later years.

When a lumpsum makes sense

Lumpsum investing suits situations where you receive a one time inflow such as a bonus, an inheritance, the sale of an asset, or an arrears payment. It also suits investors who already have a large emergency fund, low debt, and a long time horizon for the money to grow undisturbed.

Formula used

Future value equals P times (1 plus r) raised to n. Here, P is the lumpsum invested, r is the expected annual rate of return, and n is the number of years. The result assumes returns are compounded yearly.

Worked example

Investing ₹1,00,000 in an equity mutual fund at an assumed 12 percent annual return for 10 years grows to roughly ₹3,10,585. Stretch that to 20 years at the same assumed return and the same ₹1 Lakh becomes about ₹9.65 Lakh.

Frequently asked questions

It depends on market conditions and your situation. Lumpsum tends to outperform when invested at a market low, while SIP averages your cost across cycles. If you are new to equity, splitting a lumpsum across a few months through a STP can soften timing risk.

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