Lump Sum vs. SIP Wealth Comparison 
Analyze if a one-time investment or a systematic plan wins for your capital in .
Maturity
Maturity
Winner: -
Compound Model ()
Annual Wealth Accumulation
| Year | Lump Sum Growth | SIP Growth | Difference |
|---|
How to Use the Lump Sum vs. SIP Tool
- 1 Input Total Capital: Enter the full amount you intend to invest. The tool will use this same total to test both strategies.
- 2 Define Period & Yield: Set your investment duration and expected rate of return. Use standard mutual fund estimates (e.g., 12-15%).
- 3 Analyze the Gap: Review the "Winner" status and the annual ledger to see how the wealth gap widens or narrows over time.
Comparison: Time-Exposure vs. Market Timing
Deciding between a Lump Sum and an SIP depends on your risk appetite. A Lump Sum utilizes the maximum "Time in the Market," which usually leads to higher mathematical returns in a growing economy. An SIP, however, offers "Peace of Mind" by averaging out the cost of purchase during market dips.
Realistic FAQs for Investors in
A: Mathematically, Lump Sum wins because the entire amount is compounding from Year 1. In an SIP, your money is invested slowly, meaning a large part of your capital sits idle for the first few years.
A: Yes. SIP uses "Rupee Cost Averaging." If the market falls, your SIP buys more units at a lower price. Lump Sum does not have this advantage.
A: If you believe the market is at a reasonable valuation, Lump Sum is efficient. Otherwise, many experts suggest a "Systematic Transfer Plan" (STP).
A: Yes, most mutual funds allow you to pause, stop, or "Step-up" your SIP at any time.
A: No. This tool calculates gross wealth. Capital Gains Tax depends on your specific holding period.
A: Generally, you can start an SIP with as little as ₹500. Lump Sum investments usually require a minimum of ₹5,000.
A: The ledger provides a precise mathematical projection based on constant returns. In the real world, returns fluctuate based on market cycles.