Lumpsum Investment Calculator
Calculate returns on one-time investments. See how your lumpsum grows with compound interest over time.
Investment Details
One-time investment amount
Expected annual return percentage
How long you plan to stay invested
How often interest compounds. More frequent = higher returns
Quick Examples:
Future Value
₹0
After 10 years of investment
Investment Breakdown
Growth Composition
What is Lumpsum Investment?
Lumpsum investment means investing a large amount of money in one go, as opposed to investing smaller amounts regularly through SIP (Systematic Investment Plan). The entire principal amount starts earning returns from day one.
Key Features
- One-time investment: Full amount invested at once
- Immediate compounding: Benefits from day one
- Market timing matters: Entry point affects overall returns
- Higher potential returns: If market timing is favorable
- Higher risk: If market crashes after investment
Lumpsum vs SIP: When to Choose Which
Choose Lumpsum When:
- You have a large sum available
- Market is at correction/low levels
- Long investment horizon (10+ years)
- You can tolerate short-term volatility
- You got windfall gains (bonus, inheritance)
Choose SIP When:
- Regular monthly income/salary
- Want to average market volatility
- New to investing
- Don't want to time the market
- Disciplined investing habit
Where to Invest Lumpsum Amount
Equity Mutual Funds (High Risk, High Return)
Best for long-term wealth creation (5+ years). Expected returns: 12-15% p.a.
- Large-cap funds: Lower volatility, stable returns
- Mid/Small-cap funds: Higher volatility, higher potential returns
- Index funds: Track Nifty/Sensex, lowest expense ratio
Debt Mutual Funds (Low to Medium Risk)
For short to medium term (1-3 years). Expected returns: 6-8% p.a.
- Liquid funds: For emergency funds, 1-7 days
- Short duration funds: For 1-2 years goals
- Corporate bond funds: Slightly higher returns
Fixed Deposits (Low Risk)
Guaranteed returns, capital protection. Returns: 5-7% p.a.
- Bank FDs: Insured up to ₹5 lakh per bank
- Post Office FDs: Slightly higher interest rates
- Tax-saving FDs: 5-year lock-in, Section 80C benefit
PPF (Low Risk, Tax-free)
15-year lock-in, tax-free returns. Current rate: 7.1% p.a.
- Maximum ₹1.5 lakh per year
- EEE (Exempt-Exempt-Exempt) status
- Partial withdrawal after 7 years
Tax Implications on Lumpsum Returns
Equity Mutual Funds
- LTCG (held > 1 year): 12.5% on gains above ₹1.25 lakh/year
- STCG (held < 1 year): 20% on all gains
Debt Mutual Funds
- LTCG (held > 3 years): 20% with indexation benefit
- STCG (held < 3 years): As per income tax slab
Fixed Deposits
- Interest taxed as per income tax slab
- TDS deducted if interest > ₹40,000/year (₹50,000 for seniors)
PPF
- Completely tax-free (EEE status)
- No tax on interest, maturity, or withdrawals
Frequently Asked Questions
Is lumpsum better than SIP?
Mathematically, lumpsum gives higher returns if invested at market lows and held for long term. However, timing the market is difficult. SIP averages out volatility and is better for regular investors. Ideally, do both - invest lumpsum when you have it, and continue SIP monthly.
When should I invest lumpsum?
Best time is during market corrections (15-20% fall from peak), but don't try to catch the exact bottom. If you have a 10+ year horizon, even current market levels work. For conservative approach, use Systematic Transfer Plan (STP) - invest in debt fund and transfer to equity monthly.
How much lumpsum for ₹1 crore corpus?
At 12% return: ₹32 lakh for 10 years, ₹10 lakh for 20 years, ₹3.2 lakh for 30 years. The power of compounding means the earlier you start, the less you need to invest. Use the "How much to invest?" calculator mode above for exact calculations.
Can I do both SIP and lumpsum in same fund?
Yes, absolutely! This is actually recommended. Invest lumpsum when you have surplus (bonus, windfall) and continue regular SIP. Both investments will be tracked separately for tax calculation but will be in the same fund, giving you combined benefits.
What is Systematic Transfer Plan (STP)?
STP is a middle ground between lumpsum and SIP. You invest your entire amount in a debt fund, then automatically transfer a fixed amount to an equity fund every month. This gives you debt fund safety initially while gradually moving to equity, reducing market timing risk.
How does compounding frequency affect returns?
Higher frequency = slightly higher returns. For example, on ₹1 lakh at 12% for 10 years: Annual compounding gives ₹3.11 lakh, monthly gives ₹3.30 lakh, daily gives ₹3.32 lakh. The difference is small but adds up over long periods. Most equity funds compound daily.
Should I invest lumpsum in direct or regular plans?
Always choose direct plans if you're investing on your own. Direct plans have no distributor commission, giving 1-1.5% higher returns. Over 20 years, this difference can be 30-40% more wealth. Use fund house websites or direct platforms like Groww, Zerodha, Paytm Money.
What if market crashes after my lumpsum investment?
Don't panic and don't sell. Markets recover over time. In fact, if you have more money, invest more during the crash to average your cost. All major market crashes (2008, 2020) recovered within 1-2 years. If your goal is 10+ years away, temporary crashes don't matter.
Can I withdraw lumpsum investment anytime?
In mutual funds - yes, anytime (except ELSS which has 3-year lock-in). In FDs - yes but with penalty. In PPF - partial withdrawal after 7 years only. However, withdrawing early defeats the purpose of compounding. Try to stay invested for your planned horizon.
How to choose between equity and debt for lumpsum?
Based on your goal timeline: 0-1 year - liquid/debt funds, 1-3 years - short duration debt funds, 3-5 years - balanced/hybrid funds, 5+ years - equity funds. Also consider your risk appetite. If you can't sleep at night seeing 20% loss, choose debt even for long term.