Investment Details
Nifty 50: ~11–12% · Mid-cap: ~13–15%
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Future Value
At end of period
₹0
Amount Invested₹0
Wealth Gained₹0
Absolute Return0×
CAGR0%
Year-by-Year Growth
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Lumpsum vs SIP — When to Use What
Lumpsum investment is ideal when you receive a windfall — bonus, inheritance, or accumulated savings. Your entire capital starts compounding from day one, giving it maximum time in the market.
Future Value = P × (1 + r)^n
P = Principal invested
r = Annual return rate / 100
n = Number of years
CAGR = (FV / P)^(1/n) - 1
Frequently Asked Questions
What is a lumpsum investment? ⌄
A lumpsum investment is a one-time investment of a large amount, as opposed to SIP where you invest small amounts periodically. Lumpsum is best when you have a windfall (bonus, inheritance) and markets are at a low.
Is lumpsum better than SIP? ⌄
Lumpsum outperforms SIP when markets are consistently rising, because your entire amount compounds from day one. SIP outperforms lumpsum in volatile or falling markets through rupee cost averaging. Most financial advisors suggest combining both.
What is CAGR? ⌄
CAGR (Compound Annual Growth Rate) is the annualised rate of return that turns your initial investment into the final value. Formula: CAGR = (Final Value / Initial Value)^(1/years) - 1. It smooths out year-to-year volatility.
How much can ₹1 lakh grow in 10 years? ⌄
At 12% CAGR, ₹1 lakh becomes ₹3.11 lakh in 10 years. At 15% CAGR, it becomes ₹4.05 lakh. At 18% CAGR (aggressive equity), it becomes ₹5.23 lakh. This is the power of compounding.
What return should I expect from equity mutual funds? ⌄
Large-cap / Nifty 50 index funds have historically delivered 11–13% CAGR over 15+ year periods. Mid-cap funds 13–16%, small-cap 15–18% but with higher volatility. Use 10–12% for conservative projections.