By Aditya GuptaAccounting & Finance EducatorLast reviewed May 31, 2026Source: AMFI
About this converter
This converter helps you answer a common question: if I have ₹X today, what monthly SIP would produce the same outcome? Or conversely, if I commit to ₹Y monthly SIP, what lumpsum invested today would match it? It uses the SIP future-value formula and compares against lumpsum compounding at the same rate over the same period.
Three real-world Indian use cases. First, windfall planning: an inheritance, ESOP vesting, or bonus you don’t need immediately. The converter shows whether spreading it as SIP over 12-36 months (rupee cost averaging) produces a meaningfully different outcome than deploying it once. Second, retirement gap analysis: figuring out whether the lumpsum corpus you already have is “equivalent” to the SIP commitment you’re considering. Third, NRI funding decisions: NRIs often choose between sending a one-time large remittance or smaller monthly transfers — the math is the same.
At 12% expected returns over 10 years, a ₹10 lakh lumpsum invested today equals roughly ₹14,500/month SIP for the same period. The conversion factor changes with horizon: shorter horizons make lumpsum dominate; longer horizons let SIPs catch up via consistent contributions.
Frequently Asked Questions
How is a lumpsum converted to an equivalent SIP?
The converter finds the monthly SIP amount that produces the same final corpus as a given lumpsum, at the same expected return and time period. Useful when deciding between deploying a windfall once vs spreading it across the timeline.
Which one builds more wealth?
If you can invest a lumpsum at a market low and hold, lumpsum wins because of full-period compounding. In volatile markets or uncertain entry timing, SIP wins via rupee cost averaging. A 50/50 split is a reasonable hedge.
What expected return should I use?
12% is the historical long-run average for Indian large-cap mutual funds. 14-15% for mid-cap (with higher volatility), 10-11% for balanced funds, 7-8% for debt funds. Always use post-expense, pre-tax CAGR.
What about taxes on the corpus?
Equity funds held >1 year: LTCG at 12.5% on gains above ₹1.25 lakh per year (Budget 2024). Debt funds purchased after Apr 2023: taxed at slab rate without indexation.
Can I do a lumpsum AND a SIP?
Yes — many investors deploy 30-50% as lumpsum and SIP the rest over 12-24 months. This balances time-in-market with rupee cost averaging.
For the same corpus, lumpsum and SIP are equivalent when their FV matches. Lumpsum benefits from compounding from day 1; SIP averages cost over time (rupee cost averaging). Lumpsum is better when markets are low; SIP is safer when markets are at highs.
Lumpsum vs SIP — FAQ
Which is better — lumpsum or SIP?
Neither is universally better. Lumpsum works better when you invest at market lows (2020 crash, 2022 dip). SIP works better in volatile/sideways markets through rupee-cost averaging. For most retail investors, SIP is safer since timing the market is difficult.
Can I do both lumpsum and SIP together?
Yes! A common strategy is to park windfalls (bonus, inheritance) as a lumpsum while continuing monthly SIPs for disciplined investing. This converter helps you understand what each contributes to your overall corpus.
What return rate should I use?
For equity mutual funds: 10–14% p.a. (Nifty 50 has delivered ~12–13% CAGR over 20 years). For debt funds: 6–8%. For PPF/EPF: 7–8.25%. For a diversified portfolio: 10–12% is a reasonable assumption.
