A lumpsum calculator is a tool designed to help investors estimate the potential returns on their mutual fund investment when they invest a single, significant sum of money at once (also known as lump sum). Investments in funds are majorly divided into two types- via Systematic Investment Plan (SIP) or via Lumpsum. Under SIPs, the payment is made at regular intervals for a predetermined time, whereas, in Lumpsum payment, the investor invests a significant amount of money in a particular fund scheme in one go.
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Expected Rate of Return (Yearly)
A Lumpsum Calculator is a hassle-free online tool that gives you an estimate of your future investment returns. One time investment calculator can be a helpful tool for making investment decisions. They can help you see how much your investment could grow over time, and they can help you compare different investment options.
Our Lumpsum Return Calculator helps you figure out how much your investment could be worth in the future. Keep in mind, the actual amount can change depending on how the market is doing.
Let’s understand the working of the Lumpsum Calculator with an example:
Neha has invested a total of Rs. 50,000, with an expected annual return rate of 15% over a span of 5 years.
Calculating such a complex calculation using the formula is quite difficult and time consuming, with a one time investment calculator, you can easily calculate the estimated returns easily.
Interest Earned on you Investment: ₹50.6K
Total Maturity Amount: ₹1.01L
Below mentioned are some of the benefits that one may avail of by using one time investment calculator:
Risk Assessment: By inputting your investment amount and expected rate of return, the calculator helps in assessing the risk associated with your chosen Mutual Fund
Time-Saving: Calculating potential returns manually can be time-consuming and prone to errors. A one time investment calculator automates this process, giving you quick and reliable results.
Goal Customization: Whether you're saving for a specific milestone like retirement or a major purchase, the calculator can tailor projections to match your unique financial goals.
Adjustable Variables: You can experiment with different investment amounts and expected rates of return to find an optimal strategy that aligns with your risk profile.
Types of returns for investment returns:
Point to point return
The formula to calculate the returns on a mutual fund lump sum investment is
A = P (1 + r/n) ^ nt
The variables are mentioned in the table below:
|r||Rate of return|
|t||Duration of investment|
|n||Number of compounded interests in a year|
Follow the below mentioned steps:
Go to Policybazaar's official site.
Find the Lumpsum Calculator tool.
Input the investment amount, annual return rate, and investment duration in years.
Analyze the projected returns.
Click on “View Plans” and check for any additional advice or information provided based on the results.
Consult with a financial advisor for important investment decisions.
Here are the advantages of using the one time investment calculator:
Quick and Convenient: Policybazaar's Lumpsum Calculator provides a swift and hassle-free way to estimate potential returns on your lump sum investments.
Customized Results: It offers personalized projections based on your specific investment amount, tenure, and expected rate of return, helping you make informed decisions.
Comparison Tool: Allows you to compare different investment options, enabling you to choose the one that aligns best with your financial goals and risk tolerance.
Transparency and Clarity: Provides clear insights into the potential outcomes of your investment, allowing for a better understanding of the expected returns.
Empowers Informed Decision-making: Equips you with the information needed to make well-informed decisions about your lump sum investments, promoting financial confidence and security.
SIP is a disciplined investment approach where an individual invests a fixed amount of money at regular intervals (usually monthly) in a chosen financial instrument or mutual fund.
A lump sum investment refers to a single, large amount of money that is invested in a financial instrument, such as mutual funds, stocks, or bonds, all at once.
Lumpsum investments are particularly suitable when you have a substantial amount of capital available upfront. This approach is often favored when you believe that the market conditions are favorable, such as during a period of expected growth or a bull market. Additionally, for long-term financial goals like retirement planning or purchasing a home, a lump sum investment can potentially lead to higher returns over time compared to periodic investments.
Note: You can use the SIP calculator to calculate your returns on investment.
Investing via SIP or Lumpsum solely depends on the investor. However, if you are confident to invest your money via the Lump Sum method, it is beneficial for you to use the one time investment calculator first. Calculate how much amount you need to invest in order to achieve your financial goals.
*All savings are provided by the insurer as per the IRDAI approved insurance
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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