09 SIP vs Lumpsum
Two ways in. One finish line.
Drip a monthly SIP, or deploy a lump sum once. On the same return and the same horizon, which one crosses ahead?
SIP · monthly drip
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Invested —
Leads the race
Lumpsum · one-time
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Invested —
Leads the raceHow to read this tool What each input changes
Two ways to deploy the same money: drip it in monthly, or commit it all at once. On identical assumptions, this races the two side by side.
- Monthly SIP amount
- What the SIP lane invests each month. Its money goes in gradually, so the average rupee compounds for only part of the horizon.
- Lumpsum amount
- What the lumpsum lane invests on day one. Every rupee gets the full horizon to compound, which is its structural advantage.
- Expected annual return
- The yearly growth, applied equally to both lanes so the comparison stays fair.
- Investment period
- The shared horizon. The longer it runs, the more a lumpsum's early head start tends to tell.
Disclaimer
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.