MARKET TIMING VS RUPEE COST AVERAGING

₹10,57,405

Lumpsum produces ₹6,196 higher wealth due to full-tenure market compounding.

Total Capital to Invest₹6,00,000

Total Investment Horizon5 Years

Systematic Stagger Period (STP)12 Months

Months to systematically transfer lump sum from a liquid fund into equity.

Expected Equity CAGR12%

Market Scenario Simulation

IMMEDIATE LUMPSUM

₹10,57,405

Wealth Gained:+₹4.57 L

Time in Market:100% Capital (Day 1)

STAGGERED SIP / STP

₹10,51,209

Monthly Installment:₹50,000/mo

Wealth Gained:+₹4.51 L

Comparing Day 1 Lumpsum compounding vs Systematic deployment

Over 5+ years, Lumpsum usually achieves slightly higher absolute corpus, but STP/SIP significantly reduces emotional anxiety and drawdown risk.

SHAREABLE RESULT

Lumpsum Final Corpus

₹10,57,405

Staggered STP (12m)

₹10.51 L

With Rupee Cost Averaging

Difference

₹6,196

Lumpsum ahead

Total Capital

₹6.00 L

5 Years @ 12%