Rs 3,000 SIP Vs Rs 3,00,000 Lump Sum: Which can generate a higher corpus in 30 years?

SIP is a method of investing in which investors invest a fixed amount of money in a mutual fund or stock at regular intervals, such as daily, weekly, monthly, fortnightly, quarterly, or annually.

In a lump sum (one-time) investment, a large amount of money is invested all at once. The returns from a lump sum investment depend largely on the amount and how markets are performing. 

Target corpus: ? Monthly investments: Rs 3,000 Annualised return: 12 per cent 

In 10 years, the invested amount will be Rs 3,60,000, the capital gains will be Rs 3,12,108, and the estimated retirement corpus will be Rs 6,72,108. 

In 20 years, the invested amount will be Rs 7,20,000, the capital gains will be Rs 20,39,572, and the estimated retirement corpus will be Rs 27,59,572.

In 30 years, the invested amount will be Rs 10,80,000, the capital gains will be Rs 81,62,920, and the estimated retirement corpus will be Rs 92,42,920.

Target corpus: ? Lump sum investment: Rs 3 lakh Annualised return: 12 per cent

The investment amount will be 3,00,000, the estimated capital gains in 10 years will be 6,31,754, and the estimated corpus in 10 years will be Rs 9,31,754. 

The investment amount will be 3,00,000, the estimated capital gains in 20 years will be 25,93,888, and the estimated retirement corpus in 20 years will be Rs 28,93,888. 

The investment amount will be 3,00,000, the estimated capital gains in 30 years will be 86,87,977, and the estimated retirement corpus in 30 years will be Rs 89,87,977.