02 Lumpsum Calculator
Deploy once. Let it compound.
Project how a single one-time investment could grow at an assumed annual rate of return. One decision, years of compounding.
| Horizon | Projected value |
|---|---|
| — | |
How to read this tool What each input changes
A lumpsum projects a single one-time investment left to grow untouched. Every rupee is working from day one, so it gets the longest possible runway to compound.
- Investment amount
- The one-time sum you deploy. The final value scales directly with it.
- Expected annual return
- The assumed yearly growth rate. Because it compounds on the full amount from the very start, a small change here moves the result sharply.
- Investment period
- How long you leave it invested. Compounding accelerates over time, so doubling the years far more than doubles the gain.
Should I deploy the whole lumpsum at once?
Not always. If markets are at record highs, staging the deployment (via an STP) reduces timing risk. If valuations are reasonable and your horizon is long, lumpsum often outperforms because every rupee compounds from day one. A TRW partner can map this trade-off to your specific situation.
What return rate is realistic for lumpsum equity?
Same as SIP — 10–13% per year for diversified Indian equity over a long horizon. Lumpsum doesn't change the return rate; it changes how much capital is exposed to it from the start.
Are lumpsum returns taxed?
Yes. Equity mutual funds held over a year attract Long-Term Capital Gains tax at 12.5% on gains above ₹1.25 L/year (current rates, subject to change). Debt funds are taxed at slab rates. This calculator shows pre-tax returns.
What if markets crash right after I invest?
It's the most common fear and the most common mistake. If you stay invested through the downturn, the eventual recovery plus ongoing compounding usually outpaces the initial drawdown — provided your horizon is genuinely long. The lumpsum's compounding advantage only works if you don't pull out at the bottom.
For illustrative purposes only. Mutual fund investments are subject to market risks. Past returns do not guarantee future performance. This tool does not constitute investment advice.