Mutual fund investments are mainly of two types: lump sum and SIP. A lump sum is when an investor puts a large amount of money into a mutual fund at once. On the other hand, SIP (Systematic Investment Plan) is when you invest smaller amounts regularly, usually every month.
Both methods have their benefits. Many investors use mutual fund calculators to estimate returns before choosing where to invest. If you want to check how much your lump sum investment can grow, you can try the INDmoney lumpsum calculator.
What is Lumpsum Calculator?
A lumpsum calculator helps you know how much return you can get if you invest a big amount in one go. You just need to enter the investment amount, the expected rate of return, and the time period. Based on this, the calculator shows how much your investment could grow over time.
It's useful for investors who are planning to invest a large amount at once and want to know the potential returns. Instead of doing complex math, you can get quick results in seconds.
How Do You Get Help from the Lumpsum Calculator?
The lumpsum calculator is made to help mutual fund investors with quick and clear answers:
- It shows how much your one-time mutual fund investment can grow over time
- You can easily try different amounts, time periods, and return rates
- Gives instant results without doing any manual calculation
It’s a handy tool to plan your mutual fund investment better and see what to expect in the future.
What formula is used by the lumpsum calculator?
Lumpsum calculator uses a basic formula to show how much your investment can grow over time.
The formula is:
FV = PV (1 + r)^n
Where:
- FV is the future value (how much your money will become)
- PV is the present value (your investment amount)
- r is the expected annual return (in decimal)
- n is the number of years
This formula helps calculate the estimated value of your lump sum mutual fund investment.