Reviewed by Artha Research·Last updated 13 April 2026
Lumpsum vs SIP
Got a lump sum to invest? See whether deploying it all at once or spreading it via SIP builds more wealth over your horizon.
Your numbers
Same total amount — deployed all at once vs spread monthly.
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Winner's corpus
₹15.5L
Lumpsum wins mathematically
Deploying the full ₹5L today builds ₹5.8L more because compounding starts on the full amount immediately.
Lumpsum wins on math but requires conviction to deploy all at once. If you'd panic-sell during a crash, SIP is safer behaviourally.
Lumpsum vs SIP
Lumpsum
₹15.5L
WinnerSIP
₹9.7L
Lumpsum wins by 60%.
Same total money, different deployment timing.
Lumpsum corpus
₹15.5L
SIP corpus
₹9.7L
Equivalent SIP
₹4,167
Difference
₹5.8L
Math favours lumpsum — but behaviour favours SIP
Markets go up 70% of the time, so deploying early wins. But if a 30% crash makes you sell, lumpsum becomes the worst strategy. Know yourself.
At a glance
- What it compares
- Same total amount deployed as a one-time lumpsum vs monthly SIP over the same period.
- Key insight
- Lumpsum wins mathematically most of the time because compounding starts on the full amount immediately.
- But watch out
- SIP wins behaviourally — if a 30% crash would make you sell, SIP is the safer choice.
- Verdict logic
- FV of lumpsum vs FV of equivalent monthly SIP at same expected return.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Lumpsum FV = P × (1 + r)^n.
- SIP monthly = total / (years × 12). SIP FV = standard SIP formula.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Same expected return for both strategies.
- No tax impact modeled.
- SIP amount = total / total months.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Should I always lumpsum?
Only if you can handle short-term volatility. Markets drop 20%+ regularly. If that would make you sell, SIP is better despite the math.
What about deploying in 3-6 monthly chunks?
A middle ground that captures most of the lumpsum advantage while reducing timing risk. Reasonable for amounts over ₹5L.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
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Will a monthly SIP actually get you to this goal on time? See the required amount, what drives it, and which lever — horizon, return, or scope — moves the needle.