A lumpsum investment puts your entire amount to work on day one, so the full principal compounds for the whole tenure. It suits investors who have a windfall or accumulated savings ready to deploy.
About the Lumpsum Calculator
Lumpsum investing is mathematically superior to SIP when markets rise steadily, because all your money is deployed early. However, it carries timing risk — investing just before a market fall can hurt. Many investors split: invest via SIP regularly and deploy windfalls as lumpsums.
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Frequently Asked Questions
Lumpsum or SIP — which is better?
Mathematically, lumpsum wins if markets rise steadily. SIP reduces timing risk. Most experts recommend SIP for regular income and lumpsum for windfalls.
Is there a lock-in for lumpsum mutual fund investments?
Only for specific schemes like ELSS (3 years). Most open-ended funds can be redeemed anytime, though exit loads may apply within the first year.