Lumpsum calculator
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Also See – SIP Calculator
Lumpsum Investment
Lumpsum investment, also known as a one-time investment. it is a simple and effective way of growing your money. Lump sum investing involves investing a substantial amount of money in one investment vehicle at one go. Lump sum investment can be a smart financial move if done thoughtfully and strategically. Lump sum investing has the power of compound returns to significant growth opportunities and aligns with long-term financial goals.
Lumpsum vs SIP
| Aspect | Lumpsum Investment | SIP (Systematic Investment Plan) |
|---|---|---|
| Investment Frequency | One-time | Periodic (e.g., monthly) |
| Market Timing | Critical | Less Critical |
| Market Impact on Investment | Significant | Mitigated |
| Return Calculation | Market-dependent | Weighted Average Return |
| Potential for Compounding | Yes | Yes |
| Volatility Management | Challenging | Managed by Averaging |
| Risk Tolerance | High | Moderate |
| Timing Risk | High | Reduced |
| Investment Amount Flexibility | Limited | Flexible |
| Ideal for Long-Term Goals | Yes | Yes |