Today, everyone wants to invest in mutual funds. In this, the minimum estimated return is 12 to 14 percent. However, this return depends on the fluctuations of the market. Most investors use SIP or a lump sum to invest in mutual funds.

Through this article, we will know which will give more return on investing Rs 5000 every month, SIP or Lumpsum. We will understand with the help of calculations which is going to give more return on investing in mutual funds, SIP, or a lump sum.

Calculation
First of all, let us know how much return will be received by investing Rs 5000 every month through SIP.

SIP
Investment amount- Rs 5000 every month
Return- 12 percent
Investment period- 10 years
If the investor does a SIP of Rs 5000 every month, then he will get Rs 11,62,000 at the rate of 12 percent return. In these 10 years, Rs 6 lakh will be invested by the investor.

Now, let's know how much return you will get from a lump sum.

Lumsum

Investment amount- Lump sum Rs 6 lakh (Rs 5000 per month x 12x 10)

Return- 12%

Investment period- 10 years

If an investor invests Rs 6 lakh in a mutual fund through a lump sum, he will get Rs 18,84,000 at the rate of 12% return. The investment amount will be Rs 6 lakh.

Which one is more beneficial?

If we believe the above calculation, we can get more returns from a lump sum. There is a difference of about Rs 7,22,000 in the returns from lump sum and SIP. However, in SIP, you can prevent more investment from going in when the fund is continuously incurring losses. You cannot do this in a lumpsum.

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