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Benefits of Lump Sum Investing in Mutual Funds

Updated on January 29, 2025 , 12827 views

Lump sum investment refers to Investing a considerable amount in a Mutual Fund scheme. In lump sum investing, the money is deposited as a one-time down payment. Individuals who are having a large amount can deposit a significant proportion in Mutual Fund. Lump sum mode of investing is opposite to Systematic Investment plan or SIP mode. One can invest lump sum amount either in fixed Income or Equity Funds depending on their risk-appetite, investment tenure, and investment objective. Though most of the individuals prefer investing in Mutual Funds via SIP yet, there are some advantages of lump sum investing. So, let us understand the benefits of lump sum investing in Mutual Funds.

Benefits of Lump Sum Investing

Some of the benefits of lump sum investing in Mutual Funds are as follows:

Investment of Big Amount

By option for lump sum mode, individuals can invest a considerable amount in Mutual Funds. As a consequence, when the Market shows a growth period, then the investment value also increases to a large extent as compared to the value of SIP investment.

Ideal for Long-term Tenure

Lump sum investment is suitable for individuals who prefer to invest through long-term. Long-term investment in case of lump sum investment can be considered for an approximate investment tenure of 10 years or more. However, for lump sum investment in Debt fund, individuals can also choose to invest for a medium-term tenure.

Convenience

Lump sum mode is generally convenient for individuals as people who are having a large amount can spread their investments. However, if the investment is done through SIP mode then they have to be careful that the amount is invested at regular intervals.

Invest for the Timing

Whenever investors choose for a long-term investment, they should always look for the market timing. Individuals generally should choose to invest when the markets are already in a slump and is showing growth potentials. In this situation, individuals can earn higher returns through lump sum mode than in comparison to SIP mode. However, if the lump sum investment is done when the markets have already reached a peak, in that case, individuals might end up with a loss.

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Best Performing Lump Sum Funds for 2025

Since the lump sum investment is done for a long-term tenure, as a consequence, we can choose to invest in equity category specially in Large cap funds. So, let us look at some of the best performing large-cap Mutual Fund schemes that can be chosen for long-term investment through lump sum mode.

Fund	NAV	Net Assets (Cr)	Min Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
IDBI India Top 100 Equity Fund Growth	₹44.16 ↑ 0.05	₹655	5,000	9.2	12.5	15.4	21.9	12.6
Nippon India Large Cap Fund Growth	₹83.5861 ↑ 1.02	₹35,700	5,000	-3.9	-6.6	12.9	18.2	18.8	18.2
JM Core 11 Fund Growth	₹19.0661 ↑ 0.35	₹226	5,000	-6.3	-8.4	10.5	17.7	15	24.3
ICICI Prudential Bluechip Fund Growth	₹102.49 ↑ 1.17	₹63,264	5,000	-3.4	-5.6	12	15.8	18.4	16.9
HDFC Top 100 Fund Growth	₹1,077.31 ↑ 12.03	₹35,975	5,000	-3.9	-7	8.3	15.6	17.2	11.6
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23

*Above is list of best Lump Sum funds having AUM/Net Assets above 100 Crore. Sorted on Last 3 Year Return.

1. IDBI India Top 100 Equity Fund

The Investment objective of the Scheme is to provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related Instruments of Large Cap companies. However there can be no assurance that the investment objective under the Scheme will be realized.

IDBI India Top 100 Equity Fund is a Equity - Large Cap fund was launched on 15 May 12. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.2% since its launch. Ranked 45 in Large Cap category. .

Below is the key information for IDBI India Top 100 Equity Fund

IDBI India Top 100 Equity Fund Growth
Launch Date	15 May 12
NAV (28 Jul 23)	₹44.16 ↑ 0.05 (0.11 %)
Net Assets (Cr)	₹655 on 30 Jun 23
Category	Equity - Large Cap
AMC	IDBI Asset Management Limited
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	2.47
Sharpe Ratio	1.09
Information Ratio	0.14
Alpha Ratio	2.11
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Jan 20	₹10,000
31 Jan 21	₹11,380
31 Jan 22	₹15,236
31 Jan 23	₹15,306

IDBI India Top 100 Equity Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Invest Now

Returns for IDBI India Top 100 Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23

Duration	Returns
1 Month	3%
3 Month	9.2%
6 Month	12.5%
1 Year	15.4%
3 Year	21.9%
5 Year	12.6%
10 Year
15 Year
Since launch	14.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014

Fund Manager information for IDBI India Top 100 Equity Fund

Name	Since	Tenure

Data below for IDBI India Top 100 Equity Fund as on 30 Jun 23

Equity Sector Allocation

Sector	Value

Asset Allocation

Asset Class	Value

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity

2. Nippon India Large Cap Fund

(Erstwhile Reliance Top 200 Fund)

The primary investment objective of the scheme is to seek to generate long term capital appreciation by investing in equity and equity related instruments of companies whose market capitalization is within the range of highest & lowest market capitalization of S&P BSE 200 Index. The secondary objective is to generate consistent returns by investing in debt and money market securities.

Nippon India Large Cap Fund is a Equity - Large Cap fund was launched on 8 Aug 07. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 12.9% since its launch. Ranked 20 in Large Cap category. Return for 2024 was 18.2% , 2023 was 32.1% and 2022 was 11.3% .

Below is the key information for Nippon India Large Cap Fund

Nippon India Large Cap Fund Growth
Launch Date	8 Aug 07
NAV (31 Jan 25)	₹83.5861 ↑ 1.02 (1.24 %)
Net Assets (Cr)	₹35,700 on 31 Dec 24
Category	Equity - Large Cap
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.7
Sharpe Ratio	1.06
Information Ratio	2.04
Alpha Ratio	5.13
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Jan 20	₹10,000
31 Jan 21	₹10,517
31 Jan 22	₹14,304
31 Jan 23	₹15,366
31 Jan 24	₹20,939

Nippon India Large Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹481,656.
Net Profit of ₹181,656 Invest Now

Returns for Nippon India Large Cap Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23

Duration	Returns
1 Month	-3%
3 Month	-3.9%
6 Month	-6.6%
1 Year	12.9%
3 Year	18.2%
5 Year	18.8%
10 Year
15 Year
Since launch	12.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	18.2%
2022	32.1%
2021	11.3%
2020	32.4%
2019	4.9%
2018	7.3%
2017	-0.2%
2016	38.4%
2015	2.2%
2014	1.1%

Fund Manager information for Nippon India Large Cap Fund

Name	Since	Tenure
Sailesh Raj Bhan	8 Aug 07	17.41 Yr.
Kinjal Desai	25 May 18	6.61 Yr.
Bhavik Dave	19 Aug 24	0.37 Yr.

Data below for Nippon India Large Cap Fund as on 31 Dec 24

Equity Sector Allocation

Sector	Value
Financial Services	35.13%
Consumer Cyclical	10.92%
Industrials	10.42%
Technology	10.06%
Consumer Defensive	9.4%
Energy	6.03%
Utility	5.03%
Health Care	4.71%
Basic Materials	4.53%
Communication Services	1.33%

Asset Allocation

Asset Class	Value
Cash	1.23%
Equity	98.77%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Dec 08 \| HDFCBANK	10%	₹3,402 Cr	18,940,367
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 09 \| ICICIBANK	6%	₹2,210 Cr	17,000,000
Reliance Industries Ltd (Energy) Equity, Since 31 Aug 19 \| RELIANCE	5%	₹1,920 Cr	14,862,137 ↑ 262,137
ITC Ltd (Consumer Defensive) Equity, Since 31 Jan 16 \| ITC	5%	₹1,800 Cr	37,750,240
Infosys Ltd (Technology) Equity, Since 30 Sep 07 \| INFY	4%	₹1,579 Cr	8,500,084
State Bank of India (Financial Services) Equity, Since 31 Oct 10 \| SBIN	4%	₹1,443 Cr	17,200,644
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Sep 07 \| LT	4%	₹1,341 Cr	3,600,529
Axis Bank Ltd (Financial Services) Equity, Since 31 Mar 15 \| AXISBANK	4%	₹1,250 Cr	11,000,080
Bajaj Finance Ltd (Financial Services) Equity, Since 31 Dec 21 \| BAJFINANCE	3%	₹1,052 Cr	1,599,612 ↑ 100,000
Tata Consultancy Services Ltd (Technology) Equity, Since 30 Jun 24 \| TCS	3%	₹982 Cr	2,300,000

3. JM Core 11 Fund

The investment objective of the Scheme is to provide long-term growth by investing predominantly in a concentrated portfolio of equity / equity related instruments of companies.

JM Core 11 Fund is a Equity - Large Cap fund was launched on 5 Mar 08. It is a fund with High risk and has given a CAGR/Annualized return of 3.9% since its launch. Ranked 18 in Large Cap category. Return for 2024 was 24.3% , 2023 was 32.9% and 2022 was 7.1% .

Below is the key information for JM Core 11 Fund

JM Core 11 Fund Growth
Launch Date	5 Mar 08
NAV (31 Jan 25)	₹19.0661 ↑ 0.35 (1.86 %)
Net Assets (Cr)	₹226 on 31 Dec 24
Category	Equity - Large Cap
AMC	JM Financial Asset Management Limited
Rating	☆☆☆☆
Risk	High
Expense Ratio	2.45
Sharpe Ratio	1.41
Information Ratio	1
Alpha Ratio	8.61
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-60 Days (1%),60 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Jan 20	₹10,000
31 Jan 21	₹10,048
31 Jan 22	₹12,329
31 Jan 23	₹12,604
31 Jan 24	₹18,198

JM Core 11 Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710 Invest Now

Returns for JM Core 11 Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23

Duration	Returns
1 Month	-6.9%
3 Month	-6.3%
6 Month	-8.4%
1 Year	10.5%
3 Year	17.7%
5 Year	15%
10 Year
15 Year
Since launch	3.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	24.3%
2022	32.9%
2021	7.1%
2020	16.3%
2019	6.3%
2018	10.6%
2017	-5%
2016	43.1%
2015	11.1%
2014	-2.4%

Fund Manager information for JM Core 11 Fund

Name	Since	Tenure
Satish Ramanathan	1 Oct 24	0.25 Yr.
Asit Bhandarkar	25 Feb 09	15.86 Yr.
Chaitanya Choksi	18 Jul 14	10.47 Yr.
Ruchi Fozdar	4 Oct 24	0.24 Yr.

Data below for JM Core 11 Fund as on 31 Dec 24

Equity Sector Allocation

Sector	Value
Financial Services	24.87%
Consumer Cyclical	20.62%
Industrials	17.7%
Technology	9.13%
Health Care	7.87%
Basic Materials	4.96%
Communication Services	3.15%
Consumer Defensive	2.82%
Energy	2.12%

Asset Allocation

Asset Class	Value
Cash	6.75%
Equity	93.25%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Bank Ltd (Financial Services) Equity, Since 30 Sep 23 \| ICICIBANK	7%	₹15 Cr	117,676 ↑ 4,676
HDFC Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| HDFCBANK	6%	₹12 Cr	66,000
Infosys Ltd (Technology) Equity, Since 28 Feb 21 \| INFY	5%	₹10 Cr	56,110 ↓ -7,000
Canara Bank (Financial Services) Equity, Since 30 Sep 24 \| CANBK	5%	₹10 Cr	990,000 ↑ 490,000
REC Ltd (Financial Services) Equity, Since 31 Jan 23 \| RECLTD	4%	₹9 Cr	178,000
ABB India Ltd (Industrials) Equity, Since 31 Oct 24 \| ABB	4%	₹9 Cr	12,700 ↑ 4,000
Amber Enterprises India Ltd Ordinary Shares (Consumer Cyclical) Equity, Since 31 Mar 23 \| AMBER	4%	₹8 Cr	14,000
Bharat Electronics Ltd (Industrials) Equity, Since 31 Aug 24 \| BEL	4%	₹8 Cr	265,683 ↑ 65,683
PB Fintech Ltd (Financial Services) Equity, Since 31 Oct 24 \| 543390	4%	₹8 Cr	42,218
Zomato Ltd (Consumer Cyclical) Equity, Since 30 Nov 23 \| 543320	4%	₹8 Cr	275,000 ↑ 85,000

4. ICICI Prudential Bluechip Fund

(Erstwhile ICICI Prudential Focused Bluechip Equity Fund)

To generate long-term capital appreciation and income distribution to unit holders from a portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain and the balance in debt securities and money market instruments. The Fund Manager will always select stocks for investment from among Top 200 stocks in terms of market capitalization on the National Stock Exchange of India Ltd. If the total assets under management under this scheme goes above Rs. 1,000 crores the Fund Manager reserves the right to increase the number of companies to more than 20.

ICICI Prudential Bluechip Fund is a Equity - Large Cap fund was launched on 23 May 08. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15% since its launch. Ranked 21 in Large Cap category. Return for 2024 was 16.9% , 2023 was 27.4% and 2022 was 6.9% .

Below is the key information for ICICI Prudential Bluechip Fund

ICICI Prudential Bluechip Fund Growth
Launch Date	23 May 08
NAV (31 Jan 25)	₹102.49 ↑ 1.17 (1.15 %)
Net Assets (Cr)	₹63,264 on 31 Dec 24
Category	Equity - Large Cap
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.69
Sharpe Ratio	0.9
Information Ratio	1.14
Alpha Ratio	4.02
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Jan 20	₹10,000
31 Jan 21	₹11,365
31 Jan 22	₹15,001
31 Jan 23	₹15,581
31 Jan 24	₹20,807

ICICI Prudential Bluechip Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹481,656.
Net Profit of ₹181,656 Invest Now

Returns for ICICI Prudential Bluechip Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23

Duration	Returns
1 Month	-1.2%
3 Month	-3.4%
6 Month	-5.6%
1 Year	12%
3 Year	15.8%
5 Year	18.4%
10 Year
15 Year
Since launch	15%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	16.9%
2022	27.4%
2021	6.9%
2020	29.2%
2019	13.5%
2018	9.8%
2017	-0.8%
2016	32.7%
2015	7.7%
2014	-0.2%

Fund Manager information for ICICI Prudential Bluechip Fund

Name	Since	Tenure
Anish Tawakley	5 Sep 18	6.33 Yr.
Vaibhav Dusad	18 Jan 21	3.96 Yr.
Sharmila D’mello	31 Jul 22	2.42 Yr.

Data below for ICICI Prudential Bluechip Fund as on 31 Dec 24

Equity Sector Allocation

Sector	Value
Financial Services	28.45%
Industrials	10.43%
Consumer Cyclical	9.71%
Technology	8.06%
Energy	8%
Basic Materials	7.42%
Consumer Defensive	5.52%
Health Care	4.76%
Communication Services	4.37%
Utility	3.48%
Real Estate	1.25%

Asset Allocation

Asset Class	Value
Cash	8.56%
Equity	91.44%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Dec 10 \| HDFCBANK	9%	₹5,845 Cr	32,542,194 ↑ 1,197,206
ICICI Bank Ltd (Financial Services) Equity, Since 30 Jun 08 \| ICICIBANK	8%	₹5,268 Cr	40,518,440
Larsen & Toubro Ltd (Industrials) Equity, Since 31 Jan 12 \| LT	7%	₹4,248 Cr	11,404,422
Infosys Ltd (Technology) Equity, Since 30 Nov 10 \| INFY	5%	₹3,116 Cr	16,770,859
Reliance Industries Ltd (Energy) Equity, Since 30 Jun 08 \| RELIANCE	4%	₹2,820 Cr	21,819,559 ↑ 485,945
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Aug 09 \| BHARTIARTL	4%	₹2,792 Cr	17,160,857 ↑ 653,740
Axis Bank Ltd (Financial Services) Equity, Since 31 Mar 14 \| AXISBANK	4%	₹2,665 Cr	23,450,184 ↑ 809,470
Maruti Suzuki India Ltd (Consumer Cyclical) Equity, Since 30 Apr 16 \| MARUTI	4%	₹2,625 Cr	2,370,209 ↑ 47,064
UltraTech Cement Ltd (Basic Materials) Equity, Since 30 Sep 17 \| ULTRACEMCO	4%	₹2,565 Cr	2,289,780 ↑ 125,047
Sun Pharmaceuticals Industries Ltd (Healthcare) Equity, Since 31 Jul 15 \| SUNPHARMA	3%	₹1,792 Cr	10,062,064

5. HDFC Top 100 Fund

(Erstwhile HDFC Top 200)

To generate long term capital appreciation from a portfolio of equity and equity linked instruments. The investment portfolio for equity and equity linked instruments will be primarily drawn from the companies in the BSE 200 Index. Further, the Scheme may also invest in listed companies that would qualify to be in the top 200 by market capitalisation on the BSE even though they may not be listed on the BSE. This includes participation in large Ipos where in the market capitalisation of the company based on issue price would make the company a part of the top 200 companies listed on the BSE based on market capitalisation.

HDFC Top 100 Fund is a Equity - Large Cap fund was launched on 11 Oct 96. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 18.8% since its launch. Ranked 43 in Large Cap category. Return for 2024 was 11.6% , 2023 was 30% and 2022 was 10.6% .

Below is the key information for HDFC Top 100 Fund

HDFC Top 100 Fund Growth
Launch Date	11 Oct 96
NAV (31 Jan 25)	₹1,077.31 ↑ 12.03 (1.13 %)
Net Assets (Cr)	₹35,975 on 31 Dec 24
Category	Equity - Large Cap
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.67
Sharpe Ratio	0.45
Information Ratio	1.3
Alpha Ratio	-0.8
Min Investment	5,000
Min SIP Investment	300
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Jan 20	₹10,000
31 Jan 21	₹10,883
31 Jan 22	₹14,334
31 Jan 23	₹15,279
31 Jan 24	₹20,460

HDFC Top 100 Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹470,047.
Net Profit of ₹170,047 Invest Now

Returns for HDFC Top 100 Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23

Duration	Returns
1 Month	-1.5%
3 Month	-3.9%
6 Month	-7%
1 Year	8.3%
3 Year	15.6%
5 Year	17.2%
10 Year
15 Year
Since launch	18.8%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	11.6%
2022	30%
2021	10.6%
2020	28.5%
2019	5.9%
2018	7.7%
2017	0.1%
2016	32%
2015	8.5%
2014	-6.1%

Fund Manager information for HDFC Top 100 Fund

Name	Since	Tenure
Rahul Baijal	29 Jul 22	2.43 Yr.
Dhruv Muchhal	22 Jun 23	1.53 Yr.

Data below for HDFC Top 100 Fund as on 31 Dec 24

Equity Sector Allocation

Sector	Value
Financial Services	33.12%
Consumer Cyclical	11.83%
Technology	9.2%
Consumer Defensive	7.96%
Industrials	7.8%
Energy	7.26%
Health Care	6.19%
Utility	5.43%
Communication Services	5.3%
Basic Materials	3.35%
Real Estate	0.67%

Asset Allocation

Asset Class	Value
Cash	1.88%
Equity	98.12%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jan 10 \| HDFCBANK	10%	₹3,615 Cr	20,126,319
ICICI Bank Ltd (Financial Services) Equity, Since 31 Dec 05 \| ICICIBANK	10%	₹3,600 Cr	27,690,474 ↓ -2,350,000
Larsen & Toubro Ltd (Industrials) Equity, Since 31 Aug 06 \| LT	6%	₹2,169 Cr	5,822,954
NTPC Ltd (Utilities) Equity, Since 30 Jun 15 \| NTPC	5%	₹1,988 Cr	54,669,743
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Apr 20 \| BHARTIARTL	5%	₹1,940 Cr	11,921,785
Infosys Ltd (Technology) Equity, Since 31 Aug 04 \| INFY	5%	₹1,798 Cr	9,679,648 ↑ 700,000
Axis Bank Ltd (Financial Services) Equity, Since 31 Jan 07 \| AXISBANK	5%	₹1,695 Cr	14,918,255 ↑ 1,415,541
ITC Ltd (Consumer Defensive) Equity, Since 31 Jan 03 \| ITC	4%	₹1,511 Cr	31,691,145
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Aug 23 \| KOTAKBANK	4%	₹1,296 Cr	7,341,626 ↑ 350,000
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 06 \| RELIANCE	3%	₹1,241 Cr	9,601,236

Lump Sum Calculator

Lump sum calculator is an instrument that helps individuals to understand how much will be the value of their Lump Sum Investment in Mutual Funds at the end of the investment tenure. The input data that needs to be fed in the calculator include tenure of lump sum investment, amount of lump sum investment, expected the long-term growth rate in the equity markets, expected long-term Inflation rate. So, let us understand the concept of how to use a lump sum calculator.

Lump Sum Investment: INR 35,000

Investment Tenure: 20 Years

Long-term Growth Rate (Approx.): 15%

Long-term Inflation Rate (Approx.): 4%

Expected Returns as per Lump Sum Calculator: INR 2,82,181

Net Profit on the Investment: INR 2,47,181

Thus, the above calculation shows that the net profit on the investment on your investment is INR 2,47,181 while the total value of your investment is INR 2,82,181.

Thus, from the above pointers, it can be said that lump sum mode of investing also has its advantages. However, individuals should be cautious while choosing lump sum mode of investment. They should check whether such mode is suitable for them or not. If individuals are not very comfortable with lump sum mode, then they can choose for STP or Systematic Transfer Plan in which they first invest the lump sum amount in a Liquid Fund and then transfer it systematically to equity fund at regular intervals.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.