Lumpsum Investment Calculator

Lumpsum Amount (₹)

₹10K ₹1Cr

Enter the one-time investment amount

Expected Annual Return (%)

1% 30%

Equity funds: 12-15%, Debt funds: 7-9%

Investment Period (Years)

1 Year 40 Years

Recommended minimum 5 years for equity funds

Investment Type

Your Lumpsum Investment Results

Investment Amount

₹5,00,000

Total Gains

₹10,51,133

Maturity Value

₹15,51,133

CAGR

12.00%

What is Lumpsum Investment?

Lumpsum investment refers to investing a large amount of money in one go, rather than spreading it over multiple installments. This is opposite to SIP (Systematic Investment Plan) where you invest smaller amounts regularly.

Lumpsum vs SIP - When to Choose What?

Choose Lumpsum When:

You have a large corpus available
Markets are at lower levels
You want to take advantage of market timing
Interest rates are falling
You have investment experience

Choose SIP When:

You have regular monthly income
You want to avoid market timing
You prefer disciplined investing
Markets are volatile
You're a beginner investor

Lumpsum Investment Strategies

Direct Lumpsum: Invest the entire amount at once
Systematic Transfer Plan (STP): Park in liquid fund, transfer gradually to equity
Value Averaging: Invest more when markets fall, less when they rise
Asset Allocation: Divide between equity, debt, and other assets
Staggered Investment: Invest in phases over 3-6 months

Advantages of Lumpsum Investment

Immediate full market exposure
Lower transaction costs
Benefit from compounding on entire amount
Suitable for market timing strategies
One-time decision making

Tax Implications

Equity Funds: LTCG 10% (>1 year), STCG 15% (<1 year)
Debt Funds: LTCG 20% with indexation (>3 years), STCG as per slab (<3 years)
ELSS Funds: 3-year lock-in, LTCG 10% thereafter

Lumpsum Calculator - FAQ

Is lumpsum better than SIP?

It depends on market conditions and your risk tolerance. Lumpsum works better in falling markets, while SIP is better in volatile or rising markets. SIP offers rupee cost averaging benefit.

What is the minimum amount for lumpsum investment?

Most mutual funds allow lumpsum investment from ₹5,000-₹10,000. However, to make it worthwhile, consider investing at least ₹1 lakh as a lumpsum amount.

Can I do lumpsum in ELSS funds?

Yes, you can invest lumpsum in ELSS funds. The 3-year lock-in period will apply from the date of investment. You can claim tax deduction under Section 80C.

Should I invest lumpsum when markets are high?

It's generally not advisable to invest lumpsum when markets are at all-time highs. Consider STP (Systematic Transfer Plan) to gradually deploy your lumpsum over 6-12 months.

How is lumpsum return calculated?

Lumpsum returns are calculated using compound interest formula: A = P(1 + r)^t, where A is maturity amount, P is principal, r is annual return rate, and t is time period.

What is CAGR in lumpsum investment?

CAGR (Compound Annual Growth Rate) shows the annual growth rate of your investment. It's calculated as: CAGR = (Ending Value / Beginning Value)^(1/years) - 1

Lumpsum Calculator - Calculate One-Time Investment Returns

Lumpsum Investment Calculator

SIP vs Lumpsum Comparison

Your Lumpsum Investment Results

Expected Returns by Asset

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