Monthly Mutual Fund SIP of Rs 10,000 versus a one-time investment of Rs 10 lakhs: Which generates a larger total sum?

Investing in mutual funds can be done through two different strategies: lump sum investment and Systematic Investment Plan (SIP).

A lump sum investment refers to investing a large amount of money at one time. For instance, a Rs 10 lakh lump sum investment is made over a 10-year period. However, the article does not provide information on how this investment would perform over this period. The calculation of the total amount accumulated through lump sum investment depends on the lump sum investment amount, annualised return, and investment period. In this case, the assumed annualised return is 12 per cent.

On the other hand, a Systematic Investment Plan (SIP) is a disciplined method of investing a fixed sum regularly (monthly or quarterly) in mutual funds. This method allows investors to benefit from compounding and rupee cost averaging. Given a monthly investment of Rs 10,000, an annualised return of 12%, and an investment period of 10 years, the total amount accumulated through SIP can be calculated. However, the exact amount that Rs 10,000 monthly MF SIP can build in 10 years is subject to the specifics of the investment and cannot be determined without further calculations.

It's important to note that lump sum investment and SIP are two different investment strategies. While lump sum investments are one-time investments, SIP involves regular, periodic investments.

The article also provides information on the potential growth of a Rs 10000 monthly SIP over 10 years, given an annualised return of 12%. Similarly, it mentions that a Rs 10 lakh lump sum investment, with the same annualised return and investment period, can build a significant amount over time.

However, the article does not compare the performance of SIP and lump sum investment directly. Additionally, it does not provide any advice on investing in mutual funds, SIP, or SIP calculator, nor does it provide any specific information about the stock market today or any other market-related news.

In conclusion, both lump sum investment and SIP are valuable strategies for mutual fund investment, each with its own benefits and drawbacks. It's essential for investors to understand these strategies and choose the one that best suits their financial goals and risk appetite.

Monthly Mutual Fund SIP of Rs 10,000 versus a one-time investment of Rs 10 lakhs: Which generates a larger total sum?