SIP vs Lump Sum Calculator

Historically, lump sum investing produces slightly higher returns in rising markets (about 60-65% of the time). However, SIP is better for most people because: (1) you may not have a lump sum, (2) rupee cost averaging reduces risk, (3) it enforces disciplined investing.

When markets drop, your fixed SIP amount buys more units. When markets rise, it buys fewer. Over time, this averages out your purchase price, protecting you from investing everything at a market peak.

Choose lump sum when: you receive a windfall (bonus, inheritance), the market has recently crashed (buying opportunity), or for debt funds where volatility is low. Choose SIP for equity funds and regular investing from salary.