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Overview of Lumpsum Investment
Some people invest a huge amount of money at one go in a mutual fund scheme. If you do this, i.e; invest the whole amount of money in one mutual fund scheme, it is called a lump sum investment. As we know, there are 2 types of saving schemes, Lump sum and SIP. In SIP, we invest a smaller amount of money in a mutual fund scheme.
It is a great long-term investment strategy. A high-risk-tolerance investor might think about making a lump-sum investment in a mutual fund plan. If you get a bonus like an inheritance or gift, you may want to think about investing a lump sum. You can make money from the lump-sum investment if you know the market correctly. You’ll still need to make investments based on your time scale, ability to take up risks and investment goals. Short-term investments are not appropriate for lump-sum investing. If managing big sums of money makes you uneasy, you can choose a structured investment plan (SIP) that staggers investments over time.
Lumpsum Calculator
A great tool that displays your long-term wealth is a lump sum calculator. Calculating the return on a lump-sum mutual fund investment is a wise move. The formula box on a lump sum calculator is where you enter the investment amount, the investment period in years, and the anticipated yearly return. You can quickly see the predicted amount and the wealth gain with the lump-sum calculator.
Working of Lumpsum Calculator
It works on the basis of future value. You can use a lump-sum calculator to determine the future worth of your investment at a specific interest rate. You must apply the following calculation,
FV = PV(1+r)^n
Where,
FV = Future Value
PV = Present Value
r = Rate of interest
n = Number of years
Steps to Use Vakilsearch Lumpsum Calculator
First, enter the investment amount in the space provided
Next, enter the investment duration
Rate of returns expected annually
Finally, the Vakilsearch Lump Sum calculator will show the wealth gain and will show the return on the investment.
What Are the Advantages of the Lumpsum Calculator?
The lump sum calculator instantly displays the profit from a lumpsum investment
It assists you in determining whether you can achieve your financial objective at the conclusion of the investment term
It is a great resource for calculating the return on a one-time mutual fund investment
Knowing the worth of your investments at maturity helps in better money management
Calculating the return on investment is simple and straightforward for new investors
To attain long-term investment goals, you can choose investments that might provide returns above inflation.
Why Vakilsearch?
A lumpsum calculator is an efficient tool which will help you plan your finances on the basis of returns. When you use utility tools like a lump sum calculator, numerous doubts might arise. Especially on its accuracy and efficiency. But, we at Vakilsearch assist you by answering all your queries as our legal experts are available round the clock.
Our tool is user-friendly and there are no complex details involved. Always choose less complex and easier procedures when it comes to legal proceedings and Vakilsearch can help you with hassle-free legal proceedings!
We provide accurate guidance and give expert advice on using a lump sum calculator.
FAQs on Lumpsum Calculator
As discussed before, A one-time investment made in a specified plan for a predetermined period is referred to as a lumpsum investment. SIP is a more methodical strategy in which a smaller sum is placed in a plan each month.
Yes! You can use the lump sum calculator for free on the Vakilsearch page.
Both have their own share of benefits. An investor who makes a lump sum investment is relieved of the headaches of tracking the amount to be invested each month and the fluctuating Net Asset Value, but it may initially prove to be a considerable financial burden. SIP demands more input from the investor but does not put a financial strain on them.
As per the lump sum calculator is concerned, investment amount, investment period and returns in percentage are the details required.
