Got a bonus, inheritance, or windfall? See exactly how a one-time investment compounds — and compare it head-to-head against SIP to make the smarter choice.
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Quick Presets
Wealth Growth Curve
Your Projection
Amount Invested
₹10,00,000
Wealth Gained
₹2,10,584
Total Corpus 🎯
₹3,10,585
Effective CAGR
12.00%
compounded annually
Wealth multiplier
3.10×
your money grows by
Gains share
68%
of total corpus is pure profit
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Same values above — see which strategy wins
Lumpsum
Invested
₹10,00,000
Final Corpus
₹3,10,585
SIP
Monthly SIP
₹8,333/mo
Final Corpus
₹1,93,924
Relative performance
🏆 Lumpsum wins by ₹1.17L
*Same 12% p.a. for 10 years. SIP splits ₹10L across 120 months.
| Year | Invested | Corpus | Wealth Gained | Total Return % |
|---|
A lumpsum investment means putting a large, single amount of money into a mutual fund all at once — rather than spreading it monthly via SIP. The key advantage: your entire principal starts compounding from day one.
If you invest ₹10 lakh today, that full ₹10L generates returns immediately. In a SIP, you'd only have ₹10K working in month one, ₹20K in month two, and so on — so lumpsum's "full exposure from day one" can be a major advantage in rising markets.
The Lumpsum Formula (AMFI Standard)
A = P × (1 + r)ⁿ
Annual compounding as used by AMFI and all major Indian financial platforms for lumpsum projections.
You received a windfall
Annual bonus, inheritance, property sale, RSU vesting — if you have a large sum sitting idle, a lumpsum starts compounding it immediately instead of losing value to inflation in a savings account.
Markets just had a sharp correction
When markets fall 20–30%, lumpsum buys units at a discount. Every major market crash in India has been followed by recovery to new highs. A lumpsum at market lows can deliver exceptional long-term returns.
You have a very long investment horizon
Over 15–20+ years, the "full principal from day one" advantage of lumpsum compounds massively. A young investor with ₹10L today will likely outperform the equivalent monthly SIP over a 20-year period.
You have a specific future goal
Planning for a child's education in 15 years? ₹20L invested today at 12% CAGR becomes ₹1.09 Cr — a highly predictable wealth creation path for a defined future goal.
Arjun receives a ₹5 lakh annual bonus. Instead of spending it, he invests each bonus as a lumpsum in an index fund at 12% CAGR. After 10 years (total invested: ₹50L):
Total invested
₹50 Lakh
Corpus
₹98.5 Lakh
Returns
₹48.5 Lakh
*Illustrative only. Each year's investment compounds for different durations. Past performance ≠ future returns.
| Factor | Lumpsum 💎 | SIP 📊 |
|---|---|---|
| Investment style | One-time, single payment | Monthly, auto-debit |
| Compounding from day 1 | ✅ Full principal | Builds up gradually |
| Market timing risk | High — entry point matters | Low — averaged out |
| Best for | Windfalls & corrections | Regular monthly income |
| Bull market performance | Higher (full corpus exposed) | Slower to build |
| Bear market impact | Full drawdown felt | Benefit from lower NAV |
| Expert recommendation | Use on market corrections | Default for most investors |
💡 Pro tip: Many experienced investors combine both — annual bonus as lumpsum + monthly SIP from salary. Best of both worlds.
Everything about lumpsum investing and this calculator.