A lumpsum investment deploys money in one shot — bonus, property sale, inheritance or FD renewal. Unlike SIP, timing matters more because entire amount enters markets at one NAV.
Lumpsum vs SIP psychology
- Lumpsum — max time in market if you have cash ready
- SIP — spreads entry when investing from monthly salary
- Many use hybrid: lumpsum + ongoing SIP
Formula
Future Value = Present Value × (1 + r)n for annual compounding illustration.
Planning tips
- Keep emergency fund separate before investing bonus
- Consider STP from liquid fund to equity over 3–6 months if nervous
- Match horizon to asset class — equity 5+ years
Master Calc Lumpsum Calculator and Mutual Fund Calculator.
Disclaimer: Market risk applies.