Enter Investment Details
Estimated Future Value
SIP vs Lumpsum
Choose the investment type that suits you:
• Monthly SIP: Invest a fixed amount regularly (e.g., monthly). Ideal for disciplined investing, benefiting from rupee cost averaging and compounding over time.
• Lumpsum: Invest a single, large amount at once. Suitable if you have a large sum available and want to deploy it immediately in the market.
This calculator helps estimate the potential future value for either method based on your inputs.
The Power of Compounding
Compounding means earning returns not just on your initial investment, but also on the returns that accumulate over time. Your money starts working for you.
The longer you stay invested, the more significant the impact of compounding can be, potentially leading to exponential growth, especially visible over long investment horizons.
The doughnut chart visualizes the final estimated breakdown between your total investment and the estimated wealth gained through returns.
Frequently Asked Questions (FAQ)
SIP stands for Systematic Investment Plan. It's a method of investing a fixed amount of money in mutual funds at regular intervals (like monthly or quarterly). It helps build wealth gradually and benefits from rupee cost averaging and compounding.
A Lumpsum investment is when you invest a large sum of money into a mutual fund scheme all at once, instead of investing smaller amounts periodically like in a SIP.
The choice depends on your financial situation and risk appetite. SIPs are generally recommended for most investors, especially salaried individuals, as they encourage discipline and average out costs. Lumpsum can be beneficial if you have a large amount to invest and potentially better market timing insights, but it carries higher timing risk.
Rupee Cost Averaging is an advantage of SIP investing. When the market is down, your fixed investment amount buys more units of the mutual fund. When the market is up, it buys fewer units. Over time, this averages out the purchase price per unit, potentially reducing the impact of market volatility.
The Expected Return Rate is an assumption. It's based on the historical performance of the asset class (like equity or debt) or the specific fund category you plan to invest in. It's important to be realistic – past performance doesn't guarantee future returns. For equity funds, long-term average returns have historically been around 10-15%, but this varies greatly.
No. The results shown are purely estimates based on the inputs you provide (investment amount, rate, period). Actual returns depend on the performance of the chosen mutual fund scheme and overall market conditions, which can fluctuate significantly. Mutual fund investments are subject to market risks.
No, this calculator shows potential growth before any deductions. It does not account for expense ratios (charged by mutual funds), exit loads (if applicable), transaction charges, or taxes (like capital gains tax) which will impact your actual in-hand returns.
This calculator assumes monthly compounding for both SIP and Lumpsum calculations. This means the expected annual return rate is divided by 12, and returns are calculated and added to the principal every month.
Disclaimer
This calculator is provided for illustrative and informational purposes only and does not constitute financial advice. Calculations are estimates based on user inputs and assumed compounding; actual returns are subject to market risks and are not guaranteed. This tool does not account for inflation, taxes, fees (like expense ratio, exit load), or other charges that may affect net returns. Consult with a qualified financial advisor before making investment decisions.