Investment Return Simulator
Compare how your lump-sum investment grows across different risk scenarios. Model conservative, moderate, and aggressive outcomes side by side.
Moderate Scenario (Balanced / Large Cap (~12%))
₹15.53 L
+₹10.53 L profit
Conservative
FD / Debt Funds (~8%)
₹10.79 L
+116%
Moderate
Balanced / Large Cap (~12%)
₹15.53 L
+211%
Aggressive
Small / Mid Cap (~18%)
₹26.17 L
+423%
Frequently Asked Questions
What is a lumpsum investment?
A lumpsum investment means investing a large amount at once (as opposed to SIP). It works best in rising markets or when you have a long horizon (10+ years) to ride out volatility.
What returns can I expect from mutual funds?
Historical Indian market returns: Large-cap 12-14%, Mid-cap 15-18%, Small-cap 18-22%, Debt funds 7-9% CAGR over 10+ years. Past performance doesn't guarantee future results.
Is lumpsum better than SIP?
Lumpsum outperforms in rising markets; SIP wins in volatile/falling markets via rupee cost averaging. For most people, SIP is safer. Use lumpsum when markets are undervalued or you have 10+ year horizon.
How does compounding work?
Compounding = returns on returns. ₹1L at 12% becomes ₹1.76L (5yr), ₹3.1L (10yr), ₹9.6L (20yr). The longer you stay invested, the more powerful compounding gets. Time in market > timing the market.
How to Use This Return Simulator
Enter your lump-sum investment amount and time horizon. The simulator automatically shows three scenarios — conservative (8%), moderate (12%), and aggressive (18%) — so you can visualize the range of possible outcomes for your investment.
Common Use Cases
- Visualizing long-term wealth creation across risk levels
- Deciding how much to invest based on target corpus at retirement
- Understanding the impact of time horizon on compounding returns
- Comparing equity vs debt vs hybrid portfolio outcomes
Choosing the Right Scenario
Conservative (8%) suits debt funds, FDs, and PPF. Moderate (12%) represents large-cap equity or balanced funds over 10+ years. Aggressive (18%) reflects mid/small-cap equity performance over long periods. Your actual returns will vary year to year, but these scenarios help set realistic expectations. For goals under 5 years, use the conservative estimate; for 10+ year goals, moderate is a reasonable baseline.
Investment return simulator
This simulator models how an initial investment grows under different annual return assumptions and time horizons. Useful for goal-setting: education corpus, wedding fund, or down payment target. Adjust return slider to see best-case (15%), base-case (12%), and stress-case (8%) scenarios — critical for realistic planning.
Sequence of returns risk matters: losing 20% in year 1 then gaining 20% does not break even. Simulators show geometric growth; real paths are jagged. For SIP-style contributions use SIP calculator; for one-time deployment use lumpsum calculator.
Inflation adjustment
Nominal ₹1 crore in 20 years may buy what ₹35–40 lakh buys today at 6% inflation. Mentally discount simulated outputs by inflation for real purchasing power. Retirement planning should always use real (inflation-adjusted) return assumptions of 5–7% for equity-heavy portfolios.