There are two ways to invest funds – lumpsum investments and SIPs (Systematic Investment Plan). Investing your money at one time itself by depositing it as a chunk in an investment tool is called lump sum investment. While staggering your investment amount in smaller fixed instalments and paying them over a while at set intervals is SIPs. Both these manners of investing funds are expected in Mutual funds, and each of them has its share of benefits and downfalls.
It is a good idea to go with Lumpsum payments when you have a chunk of surplus money lying with you. This can be the case when you get a significant portion of money by either selling your big-ticket assets or receiving an inheritance, etc. Lumpsum investments give great returns if invested at the right time, over a long period due to the combo's power; however, it can be tricky for you to understand how much you will gain on the maturity of your investment. Here, a Mutual Fund Lumpsum calculator can be your saviour. It can easily calculate how much you will earn if you invest 'x' money at 'y’% annual return rate for 'z' number of years. You simply need to enter these details in a Lumpsum Investment Calculator, and within a click of a button, you will know exactly how much your corpus returns will be down the line.
The Mutual Fund Lump Calculator helps you to find out what your estimated future returns will be on your investment now. This lumpsum investment calculator assists you in assessing your investment decision well in advance so that you can take an informed call of proceeding with the investment or not. It uses a mathematical formula to find this estimated return information accurately. Here is the formula,
Estimated Total Return = Current Investment Amount * [1 + (Annual Return Rate / Investment Duration in years)] ^ (Annual number of compounded interests * Investment Duration in years)
You can find the future value of your investment using this formula too. But this formula may seem complex to many, and if you try this manually, you cannot rule out the possibility of errors. That is precisely why an automatic calculation is helpful – it provides error-free results.
How does the Lumpsum calculator help you?
How to use the ICICI Direct Lumpsum calculator?
Having a fair idea of the returns your Mutual Fund investment will reap is necessary. It helps you determine the value the financial instrument offers and aids in better financial planning. The good news you do not need to sit down with paper sheets and spend endless hours calculating your investment returns. The ICICI Direct Lumpsum calculator allows you to determine your Mutual Fund returns in no time.
Here's how you can use the calculator:
Each investment has a financial goal that it is set to achieve in terms of returns. Since a Lumpsum Calculator reveals the final numeric output of your investment at the time of investment itself, you can accurately evaluate how well that investment will align with your financial goals. This pre-evaluation helps you to decide if you should or shouldn't proceed with the said investment.
Mutual funds come with market-linked risks that tend to vary their returns. That makes it difficult to estimate the size of your corpus on maturity. Here, the lumpsum future value calculator steps in to provide the closest possible estimates of your future corpus after considering years of compounding.
You don't have to be a mathematician or a subject matter expert to use this tool. This web-based calculator can be used conveniently from anywhere, by anyone. Simply enter the key data points, and the tool will automatically give you the results in seconds.
The lumpsum calculator is a free online tool provided by several mutual fund providers and other investment houses as a complimentary service on their websites.
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A Lumpsum Investment is when you invest your entire amount at once in a particular financial instrument for some time.
A Systematic Investment Plan (SIP) is an organized way to spread your investment amount over time through regular fixed instalments. On the other hand, a lumpsum investment means depositing the entire chunk of money one time for some time.
Lumpsum investments should be preferred when you have a large chunk of money at hand that needs to be invested. The source of this chunk could be years of accumulated saving, inheritance, a gift, sale proceeds from an asset/s, etc. A big-ticket investment combined with the right market timing can prove to be very profitable for a lumpsum investment.
Typically, Mutual Funds that have provided a high-yielding profit history are popular for Mutual Fund Lumpsum payments. You can take maximum advantage of the Mutual Fund scheme by investing your chunk at the right timing in the market.
You can gather an amount significant enough to be a Lumpsum payment and deposit it as the principal amount in a Mutual Fund scheme of your choice.
SIP as well as Lumpsum payment both have their fair share of benefits. A lumpsum investment does not require you to keep track of the NAV, instalment amount, and the time when the investment is to be done. SIPs inculcate financial disciple and make use of every market scenario throughout the investment.
A Mutual Fund Lumpsum Investment is when you invest your entire amount in a particular mutual fund scheme for some time (1 year, 3 years, etc.).
Anyone can invest a bulk amount in Mutual funds. Since lumpsum means one-time payment, the eligibility criterion is the minimum amount that can be invested in Mutual Funds. This varies from fund to fund, but generally, Rs. 5000 is the eligibility to invest a lumpsum amount
There is no upper limit on the amount that can be invested in a lumpsum Mutual Fund.
Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose.
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