Lump Sum Calculator
Got a bonus, inheritance, or a large surplus? A lump sum investment in a mutual fund can be a powerful wealth-creation tool when given enough time. See how your one-time investment grows over the years.
💰 Rule of 72
Divide 72 by your expected annual return to find how long it takes to double your money. At 12% CAGR, your money doubles every 6 years. At 8%, every 9 years.
- Invested Amount
- ₹1,00,000
- Maturity Value
- ₹3,10,585
- Total Gains
- ₹2,10,585
- Absolute Return
- 210.58%
- CAGR
- 12.00%
- Wealth Multiplier
- 3.11x
Frequently Asked Questions
What is a lump sum investment?
A lump sum investment is a one-time investment of a large amount in a mutual fund or other instrument, as opposed to the staggered monthly approach of SIP. It is suitable when you have a windfall or surplus funds.
Lump sum vs SIP — which is better?
If markets are at a low point, lump sum can outperform SIP. But if markets fall after a lump sum investment, SIP would have been better. For most investors without market timing ability, SIP reduces risk through averaging.
What returns can I expect from a lump sum in equity mutual funds?
Historically, diversified equity mutual funds in India have given 12–15% CAGR over 10+ year periods. However, returns are not guaranteed and depend on market conditions.
What is the tax on lump sum mutual fund gains?
For equity funds: LTCG (held > 1 year) is taxed at 12.5% above ₹1.25 lakh per year. STCG (held < 1 year) is taxed at 20%. For debt funds: gains are added to income and taxed at your slab rate.
How do I reduce risk in lump sum investments?
You can use Systematic Transfer Plans (STP) — park the lump sum in a liquid/debt fund, then transfer a fixed amount to equity funds each month. This combines the benefits of a lump sum parking with SIP-like averaging.