Lump Sum vs SIP Calculator
When you have a windfall — bonus, inheritance, or savings — should you invest it all at once or spread it as a monthly SIP? This calculator compares the final corpus of both strategies at the same expected return, helping you decide based on your situation and market conditions.
Frequently Asked Questions
Is lump sum or SIP better?+
It depends on market timing. Lump sum wins if you invest just before a bull run (markets go up consistently). SIP wins in volatile or falling markets through rupee-cost averaging — you buy more units when prices are low. For most retail investors who cannot time the market, SIP is safer and more disciplined.
What is rupee-cost averaging?+
With SIP, you invest a fixed amount monthly regardless of market level. When markets fall, your fixed amount buys more units; when markets rise, you buy fewer. Over time, this averages your purchase cost below the arithmetic average price — a benefit called rupee-cost averaging.
When is lump sum better than SIP?+
Lump sum is better when: (1) Markets have just corrected significantly (valuations are low); (2) You have a long time horizon (15+ years) where timing risk diminishes; (3) The money is idle earning low returns (FD at 7%) while equity can earn 12–14%. A hybrid approach — invest 30% immediately and SIP the rest over 6–12 months — balances both.