Money basics3 min read · Updated 21 October 2026
SIP vs lumpsum: which grows more, with real numbers
Compare a monthly SIP and a lump sum with the same total, at 12% for 10 years, and learn when each makes sense.
Same money, different timing
A lump sum of ₹12,00,000 compounds for the full 10 years. A SIP puts in ₹10,000 each month, so most of the money is invested for less time. At the same return, the lump sum ends higher: ₹39,60,464 against ₹23,23,391.
Why people still choose SIP
Most of us earn monthly, not in lumps. A SIP builds a habit, and spreads buying across market highs and lows. Returns are not guaranteed, and equity can fall for years.
When a lump sum fits
When you receive a bonus, maturity or sale proceeds, and you will not need the money for years. If you are nervous, split it into a few instalments over several months.
Think in today’s money
At 6% inflation, ₹23,23,391 in 10 years buys about ₹12,97,369 worth today. Plan with the real figure.
Common questions
Is SIP better than lumpsum?
Not always. A lump sum invested earlier compounds longer. A SIP suits steady income and reduces timing risk.
What return should I assume?
Use a cautious rate. 12% is an example, not a promise.
Is tax included?
No. Tax on gains depends on the fund type and how long you hold it.