Before investing, understand the return game of monthly vs. lump-sum SIPs, or you could face significant losses.

SIPs are invested in two ways: monthly and lump-sum. Many investors wonder which of these two investment options offers the best returns...

Mutual Fund SIP vs. Lumpsum: Mutual fund SIPs are becoming increasingly popular among Indian investors. SIPs allow you to build a large corpus by investing small amounts over a long period of time. SIPs are known as an investment option that offers good returns.

Investing in them can yield annual returns of 12 per cent or more. SIPs are invested in two ways: monthly and lump-sum. Many investors wonder which of these two investment options offers the best returns. Let's explore this topic...

Returns from a Lump Sum SIP of ₹12 Lakh after 10 Years

If you invest ₹12 lakh in a SIP for 10 years, earning a 12% annual return, your investment will grow to approximately ₹37.27 lakh at the end of the term. This means you will earn a total profit of approximately ₹25.27 lakh.

Monthly SIP of ₹10,000

If an investor starts a monthly SIP of ₹10,000 and continues it for 10 years, the total investment over 10 years will be ₹12 lakh. At a 12% annual return, this amount could grow to approximately ₹22.40 lakh, resulting in a profit of approximately ₹10.40 lakh.

Which yielded higher returns?

Investors received higher returns with lump sum investments compared to monthly investments, thanks to compounding. Lump sum investments offer the benefit of compounding from the outset and maximise returns.

Disclaimer: (The information provided here is for informational purposes only. It is important to note that investing in the market is subject to market risks. Always seek expert advice before investing as an investor. India Employment News never recommends investing here.)