Key Differences
| Factor | Lumpsum | SIP |
|---|---|---|
| Capital Deployment | Single payment | Monthly installments |
| Market Timing Risk | High (entry-dependent) | Low (averaged cost) |
| Tax Efficiency | 20% LTCG on gains >₹1L | Lower tax via averaging |
| Best For | Wealth multiplication | Disciplined saving |
How We Compare
Using our lumpsum calculator, you can:
- Calculate lumpsum maturity value
- Manually compare with SIP totals
- Analyze tax implications for both
Practical Example
Compare these two scenarios:
Lumpsum
₹12,00,000 invested today @12% for 12Y → ₹46.75L
SIP Equivalent
₹10,000/month for 12Y → ₹31.75L (hypothetical comparison)
Tax Implications
Lumpsum Tax
- 20% LTCG tax on gains >₹1 lakh
- Auto-calculated in results
SIP Tax
- Averaged cost basis benefits
- Lower short-term tax impact
Choosing Your Strategy
Choose Lumpsum If:
- You have capital available
- Market conditions are favorable
- Investment horizon >5 years
Choose SIP If:
- Regular income stream
- Market uncertainty
- Long-term goals (10+ years)
Important Notes
- Our tool calculates lumpsum returns only
- SIP comparisons are for educational purposes
- Consult financial advisors for hybrid strategies