💰 Lumpsum Calculator

Calculate returns on your one-time mutual fund investment

₹
₹5K₹1 Cr
%
1%30%
Years
1 Yr40 Yrs
Future Value
₹3,10,585
After 10 years

Investment Summary

Initial Investment ₹1,00,000
Estimated Returns ₹2,10,585
Total Value ₹3,10,585

About Lumpsum Investment

A lumpsum investment is a one-time investment of a significant amount in mutual funds. It's ideal when you have a large amount available, like bonus, inheritance, or sale proceeds.

When to Choose Lumpsum

  • You have a large sum available (bonus, maturity, inheritance)
  • Market valuations are reasonable or corrected
  • Long investment horizon (5+ years)
  • You understand and can handle market volatility
  • Asset allocation strategy requires rebalancing

Lumpsum vs SIP

  • Lumpsum: Higher returns in rising markets, timing matters
  • SIP: Rupee cost averaging, no timing needed
  • Best Approach: Combine both based on cash flow
  • Deploy lumpsum gradually through STP (Systematic Transfer Plan)

Investment Strategies

  • Direct Lumpsum: Invest entire amount immediately
  • STP Method: Park in liquid fund, transfer systematically
  • Value Averaging: Invest more when markets fall
  • Split Strategy: 50% lumpsum + 50% via SIP

Best Funds for Lumpsum

  • Large Cap Funds: Lower risk, stable returns
  • Index Funds: Diversified, low cost
  • Balanced Funds: Moderate risk-return
  • Debt Funds: For short-term goals (1-3 years)
  • Avoid sectoral/thematic funds for lumpsum

Risk Management

  • Don't invest everything in one fund
  • Diversify across market caps and fund houses
  • Keep 6-12 months expenses in emergency fund
  • Consider your risk appetite and age
  • Review portfolio quarterly but don't panic sell

Tax Implications

  • Equity Funds: LTCG above ₹1L at 10%, STCG at 15%
  • Debt Funds: Gains taxed as per income slab
  • Holding Period: 1 year for equity, 3 years for debt
  • Indexation benefit on debt funds (LTCG)

Common Mistakes to Avoid

  • Investing entire amount at market peaks
  • Not considering your risk profile
  • Ignoring expense ratios and exit loads
  • Expecting unrealistic returns (>20% annually)
  • Withdrawing in panic during market corrections
  • Not reviewing portfolio annually

Historical Returns

  • Large Cap Funds: 11-13% (10-year avg)
  • Mid Cap Funds: 13-16% (10-year avg)
  • Small Cap Funds: 14-18% (10-year avg, higher risk)
  • Index Funds: 10-12% (10-year avg)
  • Debt Funds: 7-9% (3-year avg)