Lumpsum Calculator

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Invested amount
Est. returns

A Surprising Story: The "Forgotten" Investment

A decade ago, after receiving a small inheritance, a young woman named Priya decided to invest 1 Lakh in an equity mutual fund. She didn't know much about the market, so after investing, she mostly forgot about it. Life went on, and she focused on her career and family. Recently, while organizing old documents, she found the investment statement.

Curious, she checked its current value. To her amazement, the 1 Lakh had grown to nearly 4 Lakhs. She used a lumpsum calculator to see what would happen if she left it untouched for another 10 years. The projection showed it could grow to over 12 Lakhs. It was a powerful lesson: a single, smart investment, when given enough time, can grow into a significant amount through the magic of compounding, even without any further action. The "forgotten" money was now on track to fund her child's future education, a goal she thought was much further away.

Investments in Mutual Funds can be broadly classified into two types- lumpsum and SIP. A lumpsum investment is when the depositor invests a significant sum of money on a particular mutual fund scheme.

How can a Lumpsum Calculator Help You?

  • It provides you with the estimated returns for the whole investment period.
  • It’s incredibly convenient and easy to use.
  • It enables an investor to plan his/her finances better based on the estimated return.

Formula to Calculate MF returns

The calculator uses the standard compound interest formula:

A = P (1 + r) ^ t

FAQs

What is the difference between lumpsum and SIP?

A lumpsum investment is a one-time investment. A SIP (Systematic Investment Plan) involves investing a fixed amount at regular intervals.

Which is more advantageous- lumpsum or SIP?

Both have advantages. Lumpsum can yield higher returns if timed correctly, but it's riskier. SIP averages out the purchase cost and is better for disciplined, long-term investing.

Are mutual fund calculators accurate?

They provide an estimate based on your expected return rate. Actual returns depend on market performance and can vary.

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