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SIP and Lump Sum are two widely used investment options. SIP entails investing a fixed sum on a recurring basis, whereas Lump Sum involves investing a lump sum amount at one go. Both methods have their advantages and disadvantages. SIP minimises market volatility and timing risk, whereas Lump Sum has the potential to deliver higher returns if invested at the correct moment. Let's identify between SIP and Lump Sum, which can create a larger corpus in 35 years.

SIP is an investment method of investing a predetermined amount in a mutual fund on a regular basis. It may be daily, weekly, monthly, half-yearly, or annually.

In a lump sum investment, the whole amount is invested at once, and the money starts working and earning returns right away. As the whole amount is being invested from the beginning, it has the potential to give higher returns in the long run through compounding.

In 10 years, the invested amount will be Rs 6,00,000, the capital gains will be Rs 5,20,179, and the estimated retirement corpus will be Rs 11,20,179. 

In 20 years, the invested amount will be Rs 12,00,000, the capital gains will be Rs 33,99,287, and the estimated retirement corpus will be Rs 45,99,287.

In 30 years, the invested amount will be Rs 18,00,000, the capital gains will be Rs 1,36,04,866, and the estimated retirement corpus will be Rs 1,54,04,866.

In 35 years, the invested amount will be Rs 21,00,000, the capital gains will be Rs 2,54,54,156, and the estimated retirement corpus will be Rs 2,75,54,156.

The investment amount will be 5,00,000, the estimated capital gains in 10 years will be 10,52,924, and the estimated corpus in 10 years will be Rs 15,52,924. 

The investment amount will be 5,00,000, the estimated capital gains in 20 years will be 43,23,147, and the estimated retirement corpus in 20 years will be Rs 48,23,147 

The investment amount will be 5,00,000, the estimated capital gains in 30 years will be 1,44,79,961, and the estimated retirement corpus in 30 years will be Rs 1,49,79,961. 

The investment amount will be 5,00,000, the estimated capital gains in 35 years will be 2,58,99,810, and the estimated retirement corpus in 35 years will be Rs 2,63,99,810.

Also Read: Post Office FD vs RD: Which will generate higher returns on Rs 5 lakh investment in 5 Years?

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