What is Lumpsum Investment?

Understanding Lumpsum Investments

A lumpsum investment involves deploying a single large amount (₹500 - ₹10 crore) in financial instruments like:

  • Mutual funds
  • Fixed deposits (SBI, HDFC)
  • Stock markets
  • Government schemes

Real-World Example

₹5,00,000 invested today in SBI Bluechip Fund @12% for 10 years:

Maturity Value: ₹15,52,924

5 Key Advantages

₹10L+ Corpus

Typical 15-year growth

30% Higher

Than recurring deposits

24/7 Access

With our lumpsum calculator

Lumpsum vs SIP

Lumpsum

  • Ideal for market lows
  • Full capital works immediately
  • Use our lumpsum sip calculator

SIP

  • Disciplined investing
  • Rupee-cost averaging
  • Compare using sip and lumpsum calculator

Tax Rules Explained

Equity Funds

  • 20% LTCG tax on >₹1 lakh gains
  • 15% STCG tax for <365 days

Debt Instruments

  • TDS on FD interest >₹40,000
  • 10% LTCG without indexation

Step-by-Step Calculation

Step 1

Invest ₹12,00,000 in SBI Magnum Fund

Step 2

12% annual returns over 8 years

Step 3

Calculate using our mutual fund lumpsum calculator

Result

₹26,42,411 corpus

Important Considerations

  • Market risk disclaimer
  • No guaranteed returns
  • Consult financial advisors
*Examples use historical averages. Actual returns may vary.