Lumpsum Investment Calculator
See how a one-time investment in a mutual fund, stock portfolio, or any growing asset compounds over a chosen horizon. Plug in any rate and any year count.
Lumpsum inputs
What is a lumpsum investment?
A lumpsum is a single, one-time deposit into a mutual fund, stock, ETF, fixed deposit, or any asset that grows. Common scenarios: an annual bonus, a Diwali gift from family, a maturing FD, a property sale, or inheritance. Unlike a SIP, you deploy the entire amount upfront and let compounding work.
The compound-growth formula
FV = P × (1 + r)t- P = principal amount invested
- r = expected annual return (as decimal)
- t = time in years
Worked example
₹5,00,000 invested in an equity fund earning 12% for 20 years grows to ₹48.23 lakh — almost 10×. The same amount at 8% (a hybrid fund) grows to ₹23.30 lakh. Even a 4-point difference in CAGR doubles your corpus over two decades. That is the cost of being too conservative when your horizon is long.
Lumpsum vs SIP — which to use when?
- Use lumpsum when markets are flat or correcting and you have a long horizon (5+ years).
- Use SIP when you earn monthly and want to invest as you go.
- Use a STP (Systematic Transfer Plan) when you have a large lumpsum but are anxious about timing — park in a liquid fund, transfer ₹50k–₹1L monthly to equity.
Common mistakes
- Investing the full lumpsum at market peak without an STP buffer.
- Picking a single fund — diversify across 2–4 categories.
- Forgetting taxation — equity LTCG is 12.5% with ₹1.25L exemption (FY 2024–25 onwards).
- Withdrawing in panic when markets dip 15% in year one. Stay invested; the math still works.