Should you invest all at once (lumpsum) or a fixed amount every month (SIP)? The answer depends on whether you already have the money and how you handle market ups and downs. Try both with the calculators below.
Same ₹12 lakh, two ways, at 12% a year
| Lumpsum: ₹12 lakh today | SIP: ₹10,000 a month for 10 years | |
|---|---|---|
| Total invested | ₹12 lakh | ₹12 lakh |
| Value after 10 years | ₹37.27 lakh | ₹23.23 lakh |
The lump sum ends far higher because all of it is invested for the full 10 years, while most SIP instalments are invested for much less time. This comparison only makes sense if you already have the ₹12 lakh.
When a SIP is the better choice
- You invest from salary. Most people do not have a large sum, so a SIP is the natural way to invest.
- You worry about timing. Investing a lump sum just before a fall hurts; a SIP spreads purchases across good and bad months.
- You want discipline. An automatic SIP keeps you investing without decisions.
A middle path for a large sum: put it in a low-risk fund and move it into equity monthly over 6–12 months (an STP).
Frequently asked questions
Do SIPs give better returns?
Not automatically. In a rising market a lump sum usually wins; in a falling or choppy market a SIP can buy more units cheaply. Over long periods, time in the market matters most.
How do I calculate SIP returns?
Use the SIP calculator. Returns are not guaranteed; the figures assume a steady average.
Related: Step-up SIP · CAGR calculator