LUMPSUM · ONE-TIME MF INVESTMENT · FV

Lumpsum calculator — one-shot into a fund, then wait.

Complement to the SIP calculator. When you have a bonus, inheritance, or property windfall to deploy at once, this shows the clean future value at a chosen CAGR over your tenure — plus the inflation-adjusted real value so you don't over-estimate purchasing power.

Your lump-sum

₹5.00 L
12%
10 yr

12% = long-term equity average. 9% = balanced fund. 7% = debt fund. Factor in your risk tolerance + tenure.

FUTURE VALUE
₹15.53 L
₹5.00 L invested for 10 years at 12% CAGR
Principal
₹5.00 L
Wealth gained
₹10.53 L
In today's ₹ (6% inflation)
₹8.67 L

Lump-sum vs SIP — which is better?

Mathematically, a lump-sum invested at day zero always outperforms the same rupees spread as a SIP over the same period — because every rupee gets maximum compounding time. But that ignores the real-world risk of investing a large sum at a market peak.

Heuristic: if you have ₹10 L now, don't lump-sum into pure equity. Split it into a 6-12 month STP (Systematic Transfer Plan) from a liquid fund into your target equity fund. You capture most of the lump-sum benefit while averaging out the entry price.

Tax

  • Equity MF held ≥ 12 mo: LTCG 12.5% on gains above ₹1.25L annual exemption
  • Equity MF held < 12 mo: STCG 20% (Budget 2024 raised from 15%)
  • Debt MF: taxed at slab rate, no indexation after April 2023
  • ELSS lump-sum: 3-year lock-in, otherwise same as equity MF tax

Lumpsum vs SIP

On paper a lump-sum at day zero always beats the same amount spread as a SIP — more time in market = more compounding. But lump-sum carries a big behavioural tail: if the market corrects 20% the month after you deploy ₹20L, you stare at ₹4L of red for 6+ months. Most retail investors panic-exit.

The STP compromise: Park the lumpsum in a liquid fund. Set up a Systematic Transfer Plan that auto-moves ~1/12 of it into your target equity fund each month for a year. You capture ~90% of the lumpsum advantage while smoothing out the entry price.

CAGR benchmarks (long-term)

  • Large-cap index (NIFTY 50) — 12% over 20 years
  • Flexi-cap / multi-cap active — 13-14% top quartile, 10-11% median
  • Mid/small-cap — 15-17% with significant drawdown risk
  • Balanced / hybrid — 9-11% with ~70% equity
  • Debt (medium-duration) — 7-8% pre-tax
  • Liquid / overnight — 6-7% (parking only)

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Research tool · not investment advice.

Axel Markets is an information + analytics product. We are not a SEBI-registered Research Analyst (RA) or Investment Adviser (IA). Nothing on this page is a buy, sell, or hold recommendation. Past performance is not indicative of future returns. Verify all data against the authoritative source (NSE, BSE, AMFI, SEBI, company RHP / factsheet) before acting. CAGR benchmarks are historical 15-20 year averages. Single-decade returns can deviate meaningfully. Past performance is not indicative of future returns.