Should you invest a fixed amount every month (a SIP) or put a lump sum in all at once? Both can work — the better choice depends on how much cash you have ready and how comfortable you are with market timing. Here is how the same ₹6,00,000 plays out over 10 years at 12%.
Scenario: ₹6,00,000 invested over 10 years at 12% — as a SIP of ₹5,000/month versus a one-time lump sum of ₹6,00,000.
Side-by-side comparison
| Metric | SIP (₹5,000/mo) | Lump sum (₹6,00,000) |
|---|---|---|
| Maturity value | ₹11,61,695 | ₹18,63,509 |
| Total invested | ₹6,00,000 | ₹6,00,000 |
| Estimated returns | ₹5,61,695 | ₹12,63,509 |
SIP (₹5,000/mo) vs Lump sum (₹6,00,000) at a glance
| SIP (₹5,000/mo) | Lump sum (₹6,00,000) | |
|---|---|---|
| Cash needed upfront | Low — just ₹5,000 a month | High — the full ₹6,00,000 at once |
| Market-timing risk | Low — purchases are averaged over time | Higher — everything goes in at one price |
| Discipline | Automatic, builds a savings habit | One decision, then nothing to do |
| Best for | Salaried investors saving monthly | A windfall, bonus or maturing deposit |
The verdict
When markets rise steadily, a lump sum usually ends up ahead because the whole amount compounds for the full period — as the numbers above show. In the real world, though, few people have a large sum sitting idle, and a SIP removes the risk of investing everything just before a dip. If you have money ready now and can stomach the volatility, lump sum wins on maths; for most people investing from monthly income, a SIP is the practical, lower-stress choice.
Model your own numbers with the SIP Calculator and the Lumpsum Calculator.