You have a chunk — a bonus, an inheritance, a sale, a savings account that's been sleeping. What does it grow to if you just leave it alone?
Leave an email or a number — either one works — and Archita will follow up with a plain-English read on what these figures mean for you. No spam. No drip campaigns.
A one-time investment, not a recurring one. You drop ₹5 lakh into a fund today, and don't touch it. No monthly drip. The fund compounds whatever returns it makes, on the whole amount, for the whole duration.
Lumpsums are best when you have a sudden chunk — bonus, inheritance, property sale, FD maturity — and a goal that's many years away.
Standard compound interest, compounded annually:
Where P is the lumpsum amount, r is the annual return rate (as a decimal), and n is the number of years. Cleaner formula than SIP — but the timing matters more (one buy at one price), so the path can swing wider.
Honest answer: depends on what you have. If you have a chunk now and the market's at a normal level, lumpsum captures all the future compounding. If you have an income stream and the market's volatile, SIP averages your buy price.
Most real people use both. A monthly SIP for discipline, a lumpsum when an unexpected amount lands. Talk to Archita — she'll help you figure out the split.