Calculate your potential returns from a one-time investment in mutual funds or stocks
| Year | Principal | Interest | Total Value |
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Note: SIP calculation assumes same total investment amount spread over the period.
A lumpsum investment involves investing a significant amount of money in one go, rather than spreading it out over time (as in SIP). This approach is suitable when you have a large amount available for investment and believe the market conditions are favorable.
Lumpsum investments can generate higher returns than SIP if the market rises steadily after investment. However, they carry higher risk as your entire investment is exposed to market volatility at once. SIP reduces timing risk through rupee cost averaging.
Lumpsum investments benefit significantly from compounding, especially over long periods. The longer your money remains invested, the more it can grow through the compounding effect, where you earn returns on your returns.