What is compound interest?

Compound interest is interest earned on both the principal and on the interest accumulated from previous periods. Over long horizons this creates exponential growth, which is why early investing matters so much.

Compound Annual Growth Rate — the constant yearly rate at which an investment would have grown to reach its final value from its starting value. It smooths out volatile year-to-year returns.

What happens if markets crash right after I invest?

Short-term drawdowns are painful but historically recover. Over 15+ year horizons, Indian equity indices have never delivered negative real returns. The risk is only real if your horizon is short (< 5 years).

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Lumpsum Calculator — one-time mutual fund investment

Calculate the future value of a one-time lumpsum investment. Enter principal, expected return, and duration. Instant wealth projection.

Inputs

Lumpsum amount₹1.00 L

₹1,000₹10.00 Cr

Expected return (p.a.)12%

130

Investment period10 yrs

140

Result

Future value

₹3.11 L

Invested

₹1.00 L

Wealth gained

₹2.11 L

Composition

Invested

Returns

Year-by-year growth

About the Lumpsum Calculator

A lumpsum investment is a one-time deposit into a mutual fund, stock, or any instrument that grows at a compound rate. It's the simplest form of long-term investing.

Formula: FV = P × (1+r)^n. ₹1 lakh invested at 12% for 20 years grows to ₹9.65 lakh — nearly 10x without adding a single rupee.

Lumpsum investing works best when you have surplus capital (bonus, inheritance, windfall) and a long horizon. For regular income investment, combine with a SIP.

Lumpsum — Frequently asked questions

If you have the money right now and markets aren't at a peak, lumpsum usually wins over long horizons because your capital works for longer. SIP wins in volatile or declining markets by averaging your cost. Most investors should do a mix.

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