Investments
SIP vs lump sum
A SIP spreads contributions across time, while a lump sum puts the full amount to work immediately; neither method guarantees a better market outcome.
Cash-flow difference
SIPs can suit a regular monthly surplus. A lump sum requires investable money upfront and is exposed to market movement from the investment date.
Return comparisons need care
A SIP has many cash-flow dates, so XIRR is often more informative for realised SIP performance than a simple CAGR comparison. Projections use assumptions, not actual fund results.
Step-up SIP
Increasing a SIP periodically changes the cash flows and can increase the amount invested. It should be affordable rather than automatic.
How to check a SIP projection
Multiply the monthly contribution by the number of months to find total invested. Then compare that with the projection. For ₹10,000 a month over 10 years, total invested is ₹12,00,000; at a 12% annual assumption, WealthAura's start-of-month method projects about ₹23.23 lakh. That difference is a projection, not a return you can rely on.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculatorFrequently asked questions
Does a SIP projection guarantee a return?
No. It uses the selected constant return assumption; market-linked investments can rise or fall.
Which calculator should I use with this guide?
Use the SIP calculator for a fixed monthly contribution and treat the output as an illustration.