What is a Lumpsum Investment
Lumpsum investment is a style of investment in which you deposit the entire amount at one go.Lumpsum investment is a popular way of investing in MFs.
Have a goal in your mind? You can calculate the lumpsum investment required to achieve that goal with Nuuu Lumpsum Calculator.
What is Lumpsum Calculator?
A lumpsum calculator is a smart online toolthat helps you compute an estimated value of your lumpsum mutual fund investment. This is the fastest and easiest way for you to calculate the returns on your investment. A mutual fund lumpsum calculators will typically ask you to enter an investment amount, investment period in years, and the annual rate of return expected on the investment. By using the lump sum investment calculator, you can find the expected value of your mutual fund investment at the end of the investment period. This will give you an idea if your lumpsum investment will meet your goals.
For example: If you invest 1 lakh rupees for 60 years at 15% rate of interest then according to lumpsum calculator, the future value of your investments will be mindboggling 43.8 cr. after 60 years.
How does a Lumpsum Calculator help you?
- It assists you to plan and manage your finances better once you an estimated idea of the maturity value of your investments.
- It’s available online and you can use it anytime anywhere
- You don’t need to be a subject expert to use the calculator it’s very easy and convenient to use
- It saves your time from manual calculations and aids in avoiding human errors
How to use Lumsum Calculator?
- Enter the desired investment amount
- Select the duration for which you want to invest
- The expected rate of return that the investor assumes MF scheme is predicted to earn
A = P (1 + r/n) ^ nt
A is the estimated return
P is the present value of the invested amount
r is the estimated rate of return(in %)
t = total duration of investment
n is the number of times interest is compounded in a year
Which investment Lumpsum or SIP is more advantageous?
This totally depends on your investment objective, the money in your hand and the market conditions SIPs are recommended for equity-oriented schemes, whereas lump sum investments are better suited for debt funds. But when it comes to market conditions regarding lump sum vs SIP, you can invest with a lump sum if the market has been trending upward and is believed to continue doing so for a long time
When should I prefer a lumpsum investment?
Lumpsum investments can be great during a market downturn. When prices are low, you can purchase more units, which will appreciate and provide good returns in the long run.
Are MF calculators accurate?
Mutual fund lumpsum calculators are as accurate as it can be. It provides accurate estimates of your investment value depending upon the variables you enter. However, they do not factor in charges or market volatility.