Fully exposed from day one, so the entry date matters far more than it does for a SIP. Its return is a plain CAGR rather than an XIRR.
For the formula and the constants behind this figure, see Methodology.
Guides that use Lumpsum
3 guides put this term to work.
- SIP or lumpsum: when should you put it all in at once?Averaging is a behavioural device before it is a mathematical one. What it buys, what it costs, and why the honest answer depends on a question about you rather than the market.
- Rupee-cost averaging: why market crashes are your best friendThe worked example where a market that went nowhere still returned 30% — and the strict condition, almost never stated, on which the whole effect depends.
- How to invest a windfall: inheritance, bonus, property saleThe first ninety days decide the outcome. Park it, take tax advice before moving anything, clear expensive debt, and stagger only the equity portion.
More on ways of investing
The transaction types the calculators model.
- SIP
- A fixed amount invested on a fixed date, usually monthly.
- Step-up SIP
- A SIP whose instalment rises by a set percentage each year.
- SWP
- A fixed amount redeemed on a schedule — a SIP in reverse.
- STP
- A scheduled move from one scheme to another within the same fund house.