Mutual fund investments are divided into two categories: lump sum and SIP. An investor makes a lump sum investment in a specific mutual fund scheme when there is a sizeable amount of money. Whereas SIP or Systematic Investment Plan puts smaller amounts each month.
Both of these mutual fund investment strategies have advantages. Most investors use mutual fund calculators before selecting a mutual fund to invest in. To find out the estimated returns on your lumpsum, use the INDmoney lumpsum calculator.
How do you get help from the Lumpsum Calculator?
Investors in mutual funds can use this calculator to calculate the estimated returns on their investments.
- Save your time and effort on manual calculations.
- Show you the estimated returns instantly.
- Change the inputs at your convenience.
- Decide how much money you want to invest.
- Compare estimated returns to choose the best funds.
Before focusing on the advantages of using a lumpsum calculator, investors must understand the types of returns for a lump sum investment.
What formula is used by the lumpsum calculator?
The online mutual fund calculator uses the below formula to calculate your investment returns:
FV: PV(1+r)^n
- FV = Future Value
- PV = Present Value (Net Asset Value)
- r = Rate of interest
- n = Number of years
How to use the INDmoney Lumpsum Calculator?
The INDmoney website/app has an easily navigable lumpsum calculator. To compute your mutual fund returns, take the following actions:
- Give the necessary variables (total investment, expected return, and period).
- Once you input the variables, the estimated value from the calculator will be displayed.
- Plus, you can see the bar graph of your returns for different periods.
Benefits of using INDmoney lumpsum calculator
Since mutual fund returns are influenced by market risks, it is challenging to precisely calculate them. INDmoney lump sum calculator for mutual funds is a useful financial tool that comes with various advantages:
- This calculator helps you plan your finances based on the expected returns.
- Being an online calculator, you can access it anytime and from anywhere.
- It saves time and effort, as these calculations can be time-consuming when done manually.
Lump sum investments are widely chosen for their history of providing high returns. You can start investing with a small sum and increase it as you gain confidence in the process.
Frequently Asked Questions
What is the difference between lumpsum investment and mutual fund investment?
Lumpsum investment is nothing but one of the ways of making an investment in a mutual fund scheme. In lumpsum investment, you invest a large amount of money at once. The other is SIP, in which you can make small periodic investments.
Why should I use INDmoney lumpsum calculator?
INDmoney lumpsum calculator saves you from doing manual calculation to estimate returns from your investments. You just need to give a few inputs like investment amount, time period, and rate of return that you are expecting, and INDmoney online lumpsum calculator will show you the result instantly.
How can the INDmoney Lumpsum Calculator help me achieve my financial goals?
INDmoney lumpsum calculator helps you to estimate returns based on your inputs. You can enter the amount you wish to invest, the time period after which you will withdraw the funds and the rate of return that you are expecting. The estimated return shown based on your investment plan will allow you to determine a financial goal for the future.
How does INDmoney Lumpsum Calculator help you choose best mutual funds?
INDmoney lumpsum calculator allows you to change the rate of return freely and gives the estimated return accordingly. You can thus know which mutual fund (as per their return rate) is providing the best return and is perfectly suited for your financial goals.
What is the minimum and maximum tenure for lumpsum investment in mutual funds?
You are not required to fix any tenure for lumpsum investment in mutual funds. You can easily redeem your investment along with the return anytime you want.
Can I add money later in my lumpsum investment?
Yes, you can add as much money you want and anytime you wish in your existing lumpsum investment. Suppose you have Rs 10,000 investment in a mutual fund scheme, and now you want to add Rs 5,000 more in this, your total investment amount will now become Rs 10,000 + Rs 5,000= Rs 15,000 and returns from hereon will be calculated accordingly.
Is lumpsum better than SIP?
Lumpsum or SIP? This choice depends on your investment plans and goals. If you are willing to invest a large amount of money for a longer period of time, then lumpsum investment is the best option to go for.
Do I need a Demat account for making lumpsum investment in mutual funds?
No, you do need a Demat account for making any type of investment (lumpsum or SIP) in mutual funds. You only need to complete the KYC verification process, after which you can start making lumpsum investments in mutual funds easily.
Will I get the exact return that is shown on lumpsum calculator?
A mutual fund lumpsum calculator only shows you the estimated returns from your investment. This is because mutual funds are subjected to market risks and returns from these schemes are not fixed. They can be higher or lower, depending upon the performance of your mutual fund.
