Your Targeted Amount
Number of years to achieve your goal
Lumpsum Investment Amount
A lumpsum calculator is a valuable tool that tells you how much money you've made over time. It's a clever way to figure out the return on a lump-sum mutual fund investment.
A lumpsum calculator has a formula box to input the investment amount, the investment duration in years, and the estimated annual rate of return. In seconds, the lump-sum calculator will show you the predicted amount and wealth gain.
With a lumpsum calculator, you can find out the estimated returns or the future value of your investment made today at a certain rate of interest.
Mutual funds invest in assets like stocks and bonds, money market instruments, government bonds, and other securities. The fund manager's goal is to generate capital gains or profitable returns. The performance of the underlying asset determines the profit.
Before you learn the benefits of using the calculator, you must know about the types of returns for a lumpsum investment.
The lumpsum calculator is simple to use; an investor simply enters the necessary details and calculates the investment return and maturity amount. It enables investors to plan their finances better based on the estimated return they are most likely to receive at the end of their investment period.
The compounding of returns approach is used by the lumpsum MF calculator to calculate the projected return on investment. It is a measure of a mutual fund's yearly growth rate over time with the effect of compounding.
The formula is as follows:
A= P (1+r/n)^nt
The variables are mentioned in the table below
|A= Estimated Return|
|P= Present Value|
|r= rate of return|
|@t= Duration of Investment|
|n= Number of Compounded Interest in a Year|
Let us understand the concept better with the help of an example.
The lumpsum calculator on our website is easily navigable. First, fill in all the required details to calculate the ROI on mutual funds. Then, follow the steps mentioned below.
The MFonline Lumpsum Calculator will show you your investment's return. It also shows the increase in wealth. For your convenience, you may use the slider to adjust all the values.
It is an incredibly easy and convenient financial tool to use.
|Cost of Investment||Less due to rupee cost averaging||High as it is a one-time investment|
|Risk Associated||Low to moderate||Moderate to high|
|Flexibility||High- as the investment is regular||Low- due to one-time investment|
|Investment Horizon||3-5 years||5-7 years|
|Falling NAV||More recommended||Less recommended|
|Impact Of Market Volatility||Impact is Low||Impact is High|
The number of times an amount is invested is what distinguishes SIP from lump sum.In a SIP, a predetermined amount is invested at predetermined intervals, whereas in a lump sum, you invest once and stay invested. The SIP option allows you to adjust the intervals and amount at any time during the investment.
One of the benefits of a lumpsum investment is that it is hassle-free because it is a one-time investment that does not need the investor to consider changing NAV. However, an investor's initial financial burden might be substantial. On the other hand, SIP does not place a strain on the investor's resources, but it does necessitate a greater level of participation on their behalf.
Mutual fund investments can be made online. An investor may do so by using our platform, which allows you to invest in your preferred funds in a matter of seconds.
Yes, it is as precise as possible because mutual fund investments are subject to market risk due to market volatility. As a result, the returns are regarded as estimated returns.
Mutual funds, equity shares, exchange-traded funds, liquid funds, bonds, fixed deposits, and other vehicles are available for lump-sum investments. However, we believe that you should choose these products for lump-sum investing only after carefully analyzing your risk profile, financial goals, and liquidity requirements, among other factors.