A lumpsum investment means investing a large amount of money at once. Unlike SIP, where you invest monthly, lumpsum is a one-time investment.
Where: P = Principal (initial investment), r = Annual rate of return, n = Number of years.
Suppose you receive a bonus of ₹1,00,000 and decide to invest it in a lump sum for 10 years at an expected return of 12% per year. Without doing anything else, your one-time investment will grow to roughly ₹3,10,585 after 10 years.