SIP vs Lumpsum Calculator
Compare SIP and lumpsum returns using actual mutual fund NAV history, not assumed returns.
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Lumpsum
SIP
Portfolio Value Over Time
SIP vs Lumpsum: Which Investment Strategy Is Better?
With the same total amount, lumpsum usually wins in rising markets because all the money is invested from day one, and SIP usually wins in volatile, falling or sideways markets because it buys more units when NAVs are low. Which one wins for you depends on the fund, what the market did during that period, and how long you stayed invested.
This backtester uses actual historical NAV data from AMFI to run both strategies for any mutual fund scheme over 1, 3, 5, or 10 years: lumpsum (full amount invested on day one) and SIP (the same total split into equal monthly instalments, invested on the first NAV date of each month). The fund must have NAV history covering the whole period you pick. The results reflect real market volatility, crashes and rallies rather than an assumed return.
Pick a fund and a period, and the tool shows which strategy actually won for that fund over that period.
How to Use This SIP vs Lumpsum Backtester
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1
Search for a mutual fund
Type any part of the fund name, e.g. "Nifty 50 Index", "HDFC Flexi Cap", "Parag Parikh". The search covers all AMFI-registered schemes and prioritises Direct Growth plans.
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2
Select a time period
Choose 1 year, 3 years, 5 years, or 10 years. The backtester simulates both strategies starting from that many years ago up to the most recent NAV available.
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3
Compare the results
You'll see side-by-side cards showing the final value for both strategies on the amount you enter, the lumpsum CAGR and the SIP XIRR (both annualised, so they are directly comparable), a winner banner, and a line chart plotting both growth trajectories over time.
When Does Lumpsum Beat SIP (and Vice Versa)?
Lumpsum Wins in Bull Markets
When markets are consistently rising, investing the full amount on day one captures more growth. Every rupee is compounding from the start, while a SIP keeps part of the money waiting to be invested. Run this backtester on a few funds and periods to see how often that happens.
SIP Wins in Volatile Markets
In choppy, sideways, or falling markets, SIP's rupee cost averaging buys more units at lower NAVs. When the market recovers, those cheaply bought units gain the most. SIP also removes the emotional risk of investing a large amount right before a crash.
Time in Market > Timing the Market
Whether you invest lumpsum or SIP, the longer you stay invested in equity, the less any single bad entry point matters. Short periods can easily show losses. The worst strategy is keeping money idle in a savings account while waiting for the "right time" to invest.
The Practical Reality
Most salaried investors don't have a large lumpsum to deploy. They earn monthly and invest monthly. SIP is the natural fit for regular income. Lumpsum makes sense for bonuses, inheritance, or matured investments that need redeployment.
What Is Rupee Cost Averaging?
Rupee cost averaging is the core advantage of SIP investing. When you invest a fixed amount every month, you automatically buy more units when the NAV is low and fewer units when the NAV is high. Over time, this brings down your average cost per unit, without you having to predict or time market movements.
Example: If you invest ₹10,000/month in a fund whose NAV fluctuates between ₹40 and ₹50 over 6 months, your average cost per unit will be lower than ₹45, because you bought more units during the months when NAV was ₹40. A lumpsum investor who bought at ₹45 on day one would have a higher average cost.
The effect is strongest in volatile markets. In a steadily rising market it works against you, because you keep buying at higher NAVs, which is why lumpsum tends to win in bull runs.
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