Lumpsum Calculator

Lumpsum Calculator Inputs
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What is a Lumpsum Investment?

A lumpsum investment is a one-time investment strategy where you invest a large sum of money into a financial instrument, such as mutual funds, instead of spreading it over time. It’s perfect for individuals with surplus cash—like from a bonus or inheritance—who aim to maximize long-term market growth.

How Does Lumpsum Investment Calculation Work?

The lumpsum calculator relies on the compound interest formula to project returns:

M = P × (1 + r)^n
Where:
M = Maturity amount
P = Principal (initial investment)
r = Annual interest rate (in decimal)
n = Investment tenure in years

When Should You Opt for Lumpsum Investments?

  • Receiving a windfall (e.g., inheritance, bonus, or property sale).
  • Market dips offering attractive valuations.
  • Long-term goals like retirement or wealth-building (10+ years).
  • Confidence in market timing for higher returns.

Top Benefits of Lumpsum Investing

Higher Return Potential

Longer market exposure enhances compounding benefits.

Hassle-Free Approach

One-time investment simplifies tracking and management.

Tax Advantages

Enjoy long-term capital gains tax benefits.

Compounding Power

Your entire investment grows exponentially from day one.

Lumpsum Investment FAQs

Most mutual funds start at ₹5,000, though some premium funds may require more.

Lumpsum shines in bullish markets but carries timing risks. SIPs excel in volatility with rupee cost averaging.

Equity funds: 15% STCG (under 1 year), 10% LTCG (over ₹1 lakh after 1 year). Debt funds: Slab rate STCG (under 3 years), 20% LTCG with indexation.

Market timing poses a higher risk—if the market drops post-investment, short-term losses are possible. It’s best for long-term horizons.