Rs 5,000 SIP Vs Rs 5,00,000 Lump Sum: Which can generate a higher corpus in 35 years?

SIP and Lump Sum are two widely used investment options. SIP entails investing a fixed sum on a recurring basis, whereas Lump Sum involves investing a lump sum amount at one go. Both methods have their advantages and disadvantages. SIP minimises market volatility and timing risk, whereas Lump Sum has the potential to deliver higher returns if invested at the correct moment. Let's identify between SIP and Lump Sum, which can create a larger corpus in 35 years.

What is systematic investment plan?

SIP is an investment method of investing a predetermined amount in a mutual fund on a regular basis. It may be daily, weekly, monthly, half-yearly, or annually.

What is lump sum investment?

In a lump sum investment, the whole amount is invested at once, and the money starts working and earning returns right away. As the whole amount is being invested from the beginning, it has the potential to give higher returns in the long run through compounding.

SIP calculations

• Target corpus: ?
• Monthly investments: Rs 5,000
• Annualised return: 12 per cent
• Investment period: 35 years

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.

How much can Rs 5,000 SIP build in 35 years?

In 35 years, the invested amount will be Rs 21,00,000, the capital gains will be Rs 2,54,54,156, and the estimated retirement corpus will be Rs 2,75,54,156.

Lump sum investment calculation conditions

• Target corpus: ?
• Lump sum investment: Rs 5 lakh
• Annualised return: 12 per cent
• Investment period: 35 years

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.

What will be your corpus in 35 years with Rs 5 lakh lump sum investment?

The investment amount will be 5,00,000, the estimated capital gains in 35 years will be 2,58,99,810, and the estimated retirement corpus in 35 years will be Rs 2,63,99,810.

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