Mentioned here are two popular investment options, Systematic Investment Plan (SIP) and Lump Sum investment. SIP involves investing a fixed amount regularly, while Lump Sum involves investing a large sum at once. Both approaches have their pros and cons. SIP helps reduce market volatility and timing risks, while a lump sum may generate higher returns if invested at the right time. Let’s find out between SIP and Lump Sum, which can generate a higher corpus in 30 years.
Understanding Systematic Investment Plan (SIP)
SIP is a disciplined investment approach where a fixed amount is invested in a mutual fund at regular intervals, which can be daily, weekly, monthly, half-yearly, or yearly.
Lump Sum Investment
In a lump sum investment, an investor puts in the entire amount at once, allowing their money to start generating returns immediately.
SIP calculation conditions
Target corpus: ?
Monthly investments: Rs 6,000
Annualised return: 12 per cent
How much can Rs 6,000 SIP build in 10 years?
In 10 years, the invested amount will be Rs 7,20,000, the capital gains will be Rs 6,24,215, and the estimated retirement corpus will be Rs 13,44,215.
How much can Rs 6,000 SIP build in 20 years?
In 20 years, the invested amount will be Rs 14,40,000, the capital gains will be Rs 40,79,144, and the estimated retirement corpus will be Rs 55,19,144.
How much can Rs 6,000 SIP build in 30 years?
In 30 years, the invested amount will be Rs 21,60,000, the capital gains will be Rs 1,63,25,839, and the estimated retirement corpus will be Rs 1,84,85,839.
Lump sum calculation conditions
Target corpus: ?
Lump sum investment: Rs 6 lakh
Annualised return: 12 per cent
What can be your corpus in 10 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 10 years will be 12,63,509, and the estimated corpus in 10 years will be Rs 18,63,509.
What can be your corpus in 20 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 20 years will be 51,87,776, and the estimated retirement corpus in 20 years will be Rs 57,87,776.
What will be your corpus in 30 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 30 years will be 1,73,75,953, and the estimated retirement corpus in 30 years will be Rs 1,79,75,953.