SIP and Lump Sum are the two popular investment schemes. SIP involves investing a fixed amount at regular intervals, while a Lump Sum involves investing a lump sum amount in one go. Each has its own pros and cons. SIP reduces market volatility and timing risk compared to a Lump sum investment, while a Lump Sum could provide higher returns if invested at the right time. Let's find out which between SIP and Lump Sum can form a larger corpus in 30 years.
SIP is an investment vehicle for investing a fixed sum of money in a mutual fund on a regular basis. It can be daily, weekly, monthly, half-yearly, or yearly.
In a lump sum investment, the entire amount is invested at one time, and the money begins working and accumulating returns immediately. Since the entire amount is being invested right from the start, it can potentially yield greater returns in the long term by way of compounding.
In 10 years, the invested amount will be Rs 8,40,000, the capital gains will be Rs 7,28,251, and the estimated retirement corpus will be Rs 15,68,251.
In 20 years, the invested amount will be Rs 16,80,000, the capital gains will be Rs 47,59,001, and the estimated retirement corpus will be Rs 64,39,001.
In 30 years, the invested amount will be Rs 25,20,000, the capital gains will be Rs 1,90,46,812, and the estimated retirement corpus will be Rs 2,15,66,812.
The investment amount will be 7,00,000, the estimated capital gains in 10 years will be 14,74,094, and the estimated corpus in 10 years will be Rs 21,74,094.
The investment amount will be 7,00,000, the estimated capital gains in 20 years will be 60,52,405, and the estimated retirement corpus in 20 years will be Rs 67,52,405.
The investment amount will be 7,00,000, the estimated capital gains in 30 years will be 2,02,71,945, and the estimated retirement corpus in 30 years will be Rs 2,09,71,945.
