📊 Compare SIP vs Lumpsum
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Open SIP vs Lumpsum Calculator →Quick Comparison
| Factor | SIP | Lumpsum |
|---|---|---|
| Investment | Monthly, small amounts | One-time large amount |
| Market risk | Lower (rupee cost averaging) | Higher (timing risk) |
| Best for | Salaried investors | Large cash available |
| Returns | Good in volatile markets | Better in bull markets |
| Discipline needed | High (monthly commitment) | Low (one-time decision) |
Rs.5,000/month SIP vs Rs.6 Lakh Lumpsum (10 years, 12%)
- SIP: Rs.6L invested → Rs.11.6 lakh
- Lumpsum: Rs.6L invested → Rs.18.6 lakh
- Winner: Lumpsum by Rs.7 lakh — but only because lumpsum had full Rs.6L growing from day 1!
📌 Fair comparison: When same amount is invested (e.g. both invest Rs.6L total over same period), SIP generally wins in volatile markets due to rupee cost averaging.
When Lumpsum Wins
- You have a large amount ready and markets are at a low point
- You are investing for 15+ years (time reduces timing risk)
- You are investing in debt funds (less volatile)
When SIP Wins
- You invest monthly salary income
- Markets are uncertain / at high valuations
- You need financial discipline
- You want to avoid timing the market
Expert Recommendation
Best strategy for most Indians: Start a SIP for regular income. If you receive a bonus, invest it as lumpsum in an existing good fund. Use Step-Up SIP to increase your SIP amount by 10% each year matching salary growth.
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