Rs 5,000 SIP Vs Rs 5,00,000 Lump Sum: Which can generate a higher corpus in 30 years?

When it comes to investing, two popular options are 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 can potentially 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.

What is systematic investment plan?

SIP is a process of investing a fixed amount in a mutual fund on a regular basis. It could be daily, weekly, monthly, half-yearly or yearly.

What is lump sum investment?

In a lump sum investment, investors invest the entire amount in one go, allowing their money to begin earning returns immediately. Since the entire amount is invested from the start, it has the potential to generate higher returns over time through compounding.

SIP calculations

Target corpus: ?
Monthly investments: Rs 5,000
Annualised return: 12 per cent

How much can Rs 5,000 SIP build in 10 years?

In 10 years, the invested amount will be Rs 6,00,000, the capital gains will be Rs 5,20,179, and the estimated retirement corpus will be Rs 11,20,179.

How much can Rs 5,000 SIP build in 20 years?

In 20 years, the invested amount will be Rs 12,00,000, the capital gains will be Rs 33,99,287, and the estimated retirement corpus will be Rs 45,99,287.

How much can Rs 5,000 SIP build in 30 years?

In 30 years, the invested amount will be Rs 18,00,000, the capital gains will be Rs 1,36,04,866, and the estimated retirement corpus will be Rs 1,54,04,866.

Lump sum investment calculation conditions

Target corpus: ?
Lump sum investment: Rs 5 lakh
Annualised return: 12 per cent

What can be your corpus in 10 years with Rs 5 lakh lump sum investment?

The investment amount will be 5,00,000, the estimated capital gains in 10 years will be 10,52,924, and the estimated corpus in 10 years will be Rs 15,52,924.

What can be your corpus in 20 years with Rs 5 lakh lump sum investment?

The investment amount will be 5,00,000, the estimated capital gains in 20 years will be 43,23,147, and the estimated retirement corpus in 20 years will be Rs 48,23,147

What will be your corpus in 30 years with Rs 5 lakh lump sum investment?

The investment amount will be 5,00,000, the estimated capital gains in 30 years will be 1,44,79,961, and the estimated retirement corpus in 30 years will be Rs 1,49,79,961.

Also Read: SIP Calculation: Rs 16,000/month investment, how quickly can you generate over Rs 15 crore corpus?