Invest smarter with our Lumpsum calculator!
Lumpsum Calculator
Ready to take the leap and invest a lump sum in mutual funds? Our Lump Sum Calculator can help you determine the future value of your wealth.
Investment Summary
Disclaimer: Past performance may or may not be sustained in future and is not a guarantee of any future returns.
Disclaimer: This calculator is meant for investor education purpose only and not aimed at soliciting investments in any particular scheme of Shriram Mutual Fund. This material is created to explain basic financial / investment related concepts to investors. Mutual Fund does not provide guaranteed returns. Investors are advised to seek professional advice from financial, tax and legal advisor before investing.
What is a lumpsum calculator?
A Lump Sum Calculator is a financial tool that can project the future value of your one-time lump sum investment. Enter the investment amount, expected rate of interest and the tenure you wish to stay invested and the calculator will do the rest for you. You can also have choice to change the parameters and estimate the growth of your investment.
How do lumpsum calculators work?
The lumpsum calculator uses the following formula to estimate the future value of an investment. Maturity Amount = Initial Investment x (1 + expected rate of return)time period of the investment
Let’s try to understand this better with an example.
Maya has saved up Rs 50,000 and wants to invest it as a lumpsum for a period of 5 years. She expects a rate of return of 12%.
The lump sum calculator considers the following factors:
Investment amount = Rs. 50,000 (Lump Sum)
Expected rate of return = 12%
Investment tenure = 5 years
Maya’s maturity amount is Rs. 88,117, subject to inflation and market conditions.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Advantages of a lumpsum calculators
Investment Assessment
• Capital Allocation: It helps investors determine the ideal lump sum amount to invest in a mutual fund, ensuring that they maximize their investment potential.• Risk Analysis: Users can assess the level of risk associated with their lump sum investment and make informed decisions about fund selection.
Returns Estimation
• Performance Projections: A lump sum calculator can estimate potential returns based on historical data and expected market conditions, allowing investors to set realistic financial goals.• Comparison: Investors can compare the projected returns of different mutual funds to identify the most suitable option for their financial objectives.
Diversification
Portfolio Diversification: Investors can use the calculator to determine how to diversify their lump sum investment across various mutual funds, reducing overall portfolio risk.
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Frequently Asked Questions
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.
