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Lumpsum Calculator

Lumpsum Calculator

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Invested amount

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Total wealth generated

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Total surplus

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Lumpsum Calculator

There are two ways to invest in Mutual Fund investments: Lumpsum and SIP. With lumpsum investment, the depositor allocates a substantial amount of money toward a specific mutual fund scheme. In contrast, SIP, which stands for Systematic Investment Plan, involves making regular monthly investments in smaller amounts.

Both types of mutual fund investment strategies offer their own advantages. Lumpsum investments are favored by a significant number of investors due to their simplicity and the potential for higher returns. To determine the approximate returns on your lumpsum mutual fund investment, you can utilize an online lumpsum calculator specifically designed for lumpsum investments in mutual funds.

Why should you use the Lumpsum Calculator?

Investors can utilize this calculator to determine the approximate returns on their investments. Prior to exploring the advantages of using this calculator, it is essential to understand the various types of returns associated with lumpsum investments:

  • Absolute return
  • Total return
  • Annualized return
  • Point-to-point return
  • Trailing return
  • Rolling return

Comprehensive knowledge of these return types is crucial for investors to fully benefit from their mutual fund investments.

Having familiarized yourself with the different return types, let’s delve into the advantages of employing a lumpsum calculator:

The calculator provides estimated returns for the entire investment duration, enabling the calculation of 1-year, 3-year, and 5-year returns.

It is extremely convenient and user-friendly, even for individuals without extensive financial expertise.

The calculator offers a reasonably accurate estimation. However, it is important to note that mutual fund investments inherently carry market risks and cannot be predicted with absolute precision.

A Mutual Fund Lumpsum Calculator empowers investors to plan their finances better based on the projected returns they are likely to receive at the conclusion of their investment tenure.

Formula to Calculate Returns on Investment

Every lumpsum calculator employs a specific approach to calculate the estimated investment return. It primarily utilizes a compound interest formula where one of the variables represents the frequency of interest compounding within a year.

Here is the formula:

A = P (1 + r/n) ^ nt

The variables involved in the formula are detailed in the table provided below.

A – Estimated return

P – Present value

r – Rate of return

t – Duration of investment

n – Number of compounded interests in a year

To accurately calculate your mutual fund returns, you can utilize this formula. Let’s consider an example where you invest Rs. 10 lakh in a fund with a 15% return over a 10-year period, with compounding occurring every 6 months.

The estimated return in this scenario would be:

A = Rs. 10,00,000 (1 + 15%)^10

As you can understand, this equation may appear complex and maybe challenging for many investors to comprehend. However, a lumpsum calculator can instantly compute it. In this particular case, your estimated return at the end of the 10-year period would amount to Rs. 40, 45, 558.

How to use the EduFund Lumpsum Calculator?

The lumpsum calculator available on the EduFund website offers user-friendly navigation. To calculate your Return on Investment (ROI) for mutual funds, simply follow these steps:

Enter the necessary variables in their respective fields or utilize the slider to adjust the values accordingly. Within seconds, the calculator will generate an estimated value for you.

Advantages of using the EduFund lump sum calculator:

A mutual fund lumpsum calculator is a highly convenient financial tool that offers a multitude of advantages.

Calculating returns on mutual fund investments is basically challenging due to market risks. However, a calculator can provide you with the closest possible estimate, allowing you to plan your finances accordingly.

One of the major advantages of using a mutual fund calculator is its online accessibility, enabling you to use it anytime and from anywhere, thus eliminating time and space constraints.

Moreover, using a calculator saves you valuable time and effort, as the calculations can be time-consuming when done manually, especially when dealing with multiple variations, which could take hours to complete.

Lumpsum investments are a popular choice among investors and have a well-established track record of generating significant returns. You have the flexibility to start with a smaller amount and gradually increase your investment as you become more familiar with the process.

Get answers to your questions

Read some of the frequently-asked questions here!

What is the difference between Lumpsum and SIP? Arrow

Which is more beneficial SIP or Lumpsum? Arrow

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