Lumpsum Calculator forOne-Time Investments
Calculate returns for one-time investments. See how your money grows with compound interest over time.
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What is Lumpsum Investment?
Lumpsum investment means investing a large amount of money in one go, rather than spreading it over time. Your money grows through the power of compound interest.
Compound growth: Earn returns on your returns
Higher potential: May give better returns in bull markets
One-time effort: Invest once and let it grow
Lumpsum vs SIP
Lumpsum: Best when you have a large amount and markets are low
SIP: Best for regular investors and volatile markets
Many investors combine both strategies for optimal results
Understanding Lumpsum Investment
Lumpsum investment involves investing a significant amount of money in one go. This strategy can be highly effective when timed correctly, especially during market corrections or when you have a windfall.
Benefits of Lumpsum Investment
- Power of Compounding: Your entire investment starts growing immediately
- Lower Transaction Costs: One-time investment means fewer transaction fees
- Market Timing: Can capitalize on market lows
- Simplicity: Invest once and forget
When to Choose Lumpsum?
- When you receive a windfall (bonus, inheritance, sale proceeds)
- During market corrections or bear markets
- When you have high conviction about market direction
- For long-term goals (10+ years)
Risk Considerations
Lumpsum investment carries higher risk compared to SIP, as you invest everything at one price point. If markets fall after your investment, your portfolio value will decline in the short term. However, for long-term investors, this risk is mitigated by time in the market.