Estimated Future Value
₹ 3,10,585
Invested Amount
₹ 1,00,000
Est. Returns
₹ 2,10,585
What is a Lumpsum Investment?
A Lumpsum investment is a single, one-time payment into a financial instrument like a mutual fund. It is ideal for investors who have a large surplus of cash and a long-term investment horizon to benefit from the power of compounding.
FAQ
When should I choose Lumpsum over SIP?
Lumpsum is typically preferred when the market is low or when you have a large sum of money available (like a bonus or sale of an asset). SIP is better for regular income earners to average out market volatility.
How is the return calculated?
The calculation uses the Compound Interest formula: A = P(1 + r/100)^n, where P is the principal, r is the annual interest rate, and n is the number of years.
Is Lumpsum investment risky?
Investing a large sum at once can be risky if the market falls immediately after. However, over a long period (7-10+ years), the impact of short-term volatility usually decreases.