Lumpsum Calculator

The lump sum mutual fund investment is calculated using a simple formula to calculate the future value of an investment. It takes into account the initial investment amount, expected rate of return, and time period of the investment. The formula for calculating the future value of an investment is FV = PV x (1 + r)^n, where FV is the future value, PV is the initial investment amount, r is the expected rate of return, and n is the number of compounding periods or period of the investment.

The choice between a lump sum investment and a Systematic Investment Plan (SIP) depends on individual financial goals, risk tolerance, and circumstances. Lump sum investments are ideal when you have a significant amount of capital upfront and want potential immediate returns. However, they carry higher risks due to market volatility. SIP, on the other hand, involves investing a fixed amount at regular intervals – reducing the impact of market fluctuations and allowing for better risk management. It suits investors looking to accumulate wealth gradually and benefit from rupee cost averaging. The decision should align with your financial objectives and ability to navigate market fluctuations.

Use our Lump Sum Calculator to determine the potential return on your Rs. 1 lakh investment and then choose a mutual fund or other investment option that aligns best with your investment goals and risk tolerance.

There is no limit to the maximum amount you can invest in a lumpsum in mutual funds.

The minimum amount required for a lump sum investment in mutual funds can vary depending on the specific scheme. In some cases, the minimum investment amount can be as low as Rs. 500, while in other cases it may be as high as Rs. 5,000 or more. It's always a good to understand the minimum amount of that respective mutual fund. Please read the scheme document for more details regarding minimum investment amount, associated fees, expense ratio, exit load, entry load, etc.