Investing guides

Lumpsums, compounding, and what to do with money that arrives all at once.

• What Is a Lumpsum Investment, and How Does It Work? A lumpsum investment deploys your entire amount in one go, so all of it starts compounding immediately: ₹10 lakh at a 12% assumption grows to about ₹96 lakh over 20 years. The trade-off is entry-timing risk, since your whole capital rides the market from day one, which a staggered entry (STP) can soften. 19 Jul 2026