📐 Formula Used
Future Value = P × (1 + r)^t where P = Principal, r = Annual Return Rate, t = Years
Frequently Asked Questions
What is a lumpsum investment?
A lumpsum investment is a one-time, single payment invested all at once (as opposed to SIP which spreads investment over time).
Lumpsum vs SIP – which is better?
If markets are at a low point and you have a large idle corpus, lumpsum can outperform SIP. During volatile markets, SIP's rupee-cost averaging benefits kick in.
What return should I expect from equity mutual funds?
Historically, Indian equity mutual funds have delivered 12–15% CAGR over 10+ years. Use 10–12% as a conservative estimate.
Does lumpsum investment get NAV benefit?
In mutual funds, your lumpsum investment gets units at the current NAV (Net Asset Value). Lower NAV = more units. Growth depends on NAV appreciation.