Lump Sum Calculator

You can invest in mutual funds either as a lump sum or via systematic investment plan (SIP). The former allows you to invest a particular amount in one or more mutual fund schemes. The latter is when you invest a fixed amount in your chosen scheme at regular intervals.

Both these options have specific benefits. Several investors with a large investible surplus opt for lump sum investments as the returns could potentially be on the higher side. To determine the estimated returns, you can use an online lump sum calculator before making your decision.

What is a lumpsum calculator?

A lumpsum calculator is an online tool that helps you calculate estimated future value of your mutual fund investments for the expected rate of return. After you input, the initial investment amount, expected rate of return and the duration of investment, the calculator will show the estimated mutual fund returns.

How can Lump Sum Calculator Help you?

Before understanding how an online calculator is beneficial, it is important to know the different types of returns on your lump sum investments. These can be absolute, annualized, point to point, rolling, total, and trailing returns. Knowing about these different types of returns ensures you can maximize the potential benefits on your investments.

Here are some ways in which a mutual fund lump sum calculator can help you:

• • Determine potential returns over one-year, three-years, and five-year investment tenures

• • Accurately plan your financial goals based on the potential returns on your investments

• • Simple and convenient to use, you don’t need to be highly educated or tech-savvy to use the calculator

How to use ABSLMF Lump Sum Calculator?

The ABSLMF lump sum return calculator is very easy to use. Here are the steps to use our calculator:

• • Input the investment amount

• • Enter the number of years you want to stay invested

• • Choose the expected rate of return

Once these variables are input, you can determine the estimated returns on your investments. You can also adjust the variables to compare the potential returns in different scenarios.

Advantages of using Lump Sum Calculator

An online lump sum return in mutual fund calculator has several advantages like:

• • Provides a close estimate on the potential returns (mutual fund investments are subject to market risks and accurate returns cannot be calculated)

• • Manual calculations are confusing and cumbersome; online calculators calculate the returns in seconds, which reduces your efforts and saves time

• • The online tool can be easily accessed from any location at any time without any limitations

• • You can efficiently plan your finances based on the potential returns on your investments

What are the benefits of Lump Sum Mutual Fund Investments?

Lump sum investments have certain benefits as listed below:

• • Straightforward wherein you invest your money once and allow it to grow over the investment tenure

• • Minimal monitoring as you do not have to regularly track market conditions to make your investment decisions

• • Potential to deliver higher returns especially if the lump sum capital is invested during market corrections

• • An efficient way to accumulate wealth with the power of compounding if you have a fairly large investible surplus

Frequently Asked Questions

What is a lumpsum investment?

A lumpsum investment is when an investor makes a one-time investment of large sum of money rather than investing on regular intervals. This investment strategy can be more suitable to individuals that have received a significant amount of money and want to invest in the market.

How to calculate lump sum returns?

You can calculate the returns on your lump sum investment using an online calculator. To determine the potential returns, you simply need to enter the amount, investment tenure, and expected rate of return.

Is the lump sum calculator accurate?

The lump sum calculator is fairly accurate. However, it cannot provide the exact returns because mutual fund investments are subject to market risks, which means actual returns may vary.

How should I invest my lump sum in mutual funds?

You can invest online via the asset management company’s website. You may also invest with a mutual fund distributor or by visiting the AMC’s office.

When should one prefer lump sum investment?

Below are some instances when lump sum investments can be beneficial:

• • Lower Net Asset Value (NAV) during market lows

• • In case of unexpected surplus like a bonus, gift, or sale of an asset

• • Increase your investments in mutual fund schemes

• • ELSS funds to save taxes at the end of financial year if you have not already planned for tax savings

Can I convert lump sum to SIP?

Yes, you can convert your lump sum into a SIP. This requires setting up a SIP on a particular date for a predetermined amount.

What is the minimum amount needed for lump sum investment?

Most mutual fund schemes allow you to invest a minimum of INR 5000 as a lump sum. However, some schemes may allow a minimum investment of INR 1000.

Can I make a lump sum investment every month?

A lump sum is a one-time investment where the amount is used to purchase a fixed number of units at the prevailing NAV. A SIP is an efficient option if you want to invest a particular amount every month.