SIP vs Lumpsum
Compare how the same amount grows when invested monthly (SIP) vs all at once (lumpsum).
₹6,00,000
₹10,000₹1Cr
10 years
1yr30yr
12%
1%30%
SIP: ₹5,000/month × 120 months = ₹6,00,000 | Lumpsum: ₹6,00,000 invested at once
Lumpsum grows ₹7,01,814 more
SIP (₹5,000/month)
Invested₹6,00,000
Returns₹5,61,695
Maturity₹11,61,695
Lumpsum (₹6,00,000)
Invested₹6,00,000
Returns₹12,63,509
Maturity₹18,63,509
| Year | SIP Growth | Lumpsum Growth |
|---|---|---|
| 1 | ₹64,047 | ₹6,72,000 |
| 2 | ₹1,36,216 | ₹7,52,640 |
| 3 | ₹2,17,538 | ₹8,42,957 |
| 4 | ₹3,09,174 | ₹9,44,112 |
| 5 | ₹4,12,432 | ₹10,57,405 |
| 6 | ₹5,28,785 | ₹11,84,294 |
| 7 | ₹6,59,895 | ₹13,26,409 |
| 8 | ₹8,07,633 | ₹14,85,578 |
| 9 | ₹9,74,108 | ₹16,63,847 |
| 10 | ₹11,61,695 | ₹18,63,509 |
Note: Lumpsum typically grows more in a consistently rising market because the entire amount compounds from day one. SIP reduces risk through rupee cost averaging — better for volatile markets. The best choice depends on your risk tolerance and market outlook.
SIP Advantages
- Rupee cost averaging reduces impact of market volatility
- Disciplined investing — no need to time the market
- Better for regular income earners who invest monthly
- Lower risk — spreads investment over time
Lumpsum Advantages
- More time in the market means more compounding
- Better returns in consistently rising markets
- Ideal when you receive a windfall (bonus, inheritance)
- Simpler — one transaction, done