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Calculate Returns on Lumpsum Investment Online

There are two primary ways in which you can invest in mutual funds and portfolio management services - Lumpsum and SIP. When you opt to invest via lumpsum, you invest a specific amount in a particular MF or PMS scheme. This is a one-time investment, unlike a Systematic Investment Plan (SIP) where you invest a specific sum periodically.

You can calculate your returns from SIP investments using the online SIP calculator.

Both lumpsum and SIP have their own set of benefits. Lumpsum investment is generally beneficial if you have a deep understanding of the financial markets. However, SIP investments have the benefit of rupee-cost averaging. Various studies show that lumpsum investment is highly rewarding compared to SIP. You can calculate returns on your lumpsum investments using online lumpsum investment calculators.

What is Lumpsum Investment?

A lumpsum investment is a way of investing in mutual funds and portfolio management services,where you invest the entire amount in one go. This is in contrast to SIP where you would invest a small amount periodically.

For example, say your goal is to accumulate ₹10 crores in 15 years, assuming a rate of return of 15%. So, to achieve this you either need to invest ₹1.2 crores today as a lumpsum investment or ₹1.6 lakh per month for 15 years via SIP.

What is a Lumpsum Calculator?

A lumpsum calculator is a tool that helps you calculate the maturity or future value of your investment. It also helps you calculate the wealth created over the specified period. Using the online lumpsum calculator you can determine the expected value at the end of the investment period. The lumpsum calculator helps you understand whether or not you can achieve your financial goals.

How do Lumpsum Calculators Work?

The lumpsum calculator calculates the maturity or future value of your investments based on the input provided by you. Generally, they require the lumpsum investment amount, investment period, and expected rate of return to calculate the future value. Below is the formula used by the lumpsum calculator to calculate the future value of your lumpsum investments.

FV = PV(1+r)^n

Where

• FV = Future Value
• PV = Present Value
• r = Expected Rate of Return
• n = Investment Period

Example

Say your lumpsum investment, expected rate of returns, and investment period are ₹1 crore, 15%, and 10 years, respectively. This translates to the maturity or future value of ₹4 crores.

How to use the Purnartha Lumpsum Calculator?

Purnartha Lumpsum Calculator helps you determine the future value of your lumpsum investments in seconds. Follow the below steps to calculate the wealth created on maturity using Purnartha Lumpsum Calculator:

• Enter your desired investment amount.
• Enter the expected rate of return (p.a.).
• Enter your desired investment duration (years).

This will instantly give you:

• Total lumpsum amount invested.
• Wealth created over the specified investment period.

How Can a Lumpsum Calculator Help You?

The lumpsum investment calculator helps you to calculate how much wealth you create on your one-time investment. The output that it generates, clearly helps you understand whether or not you can achieve your financial goals.

The following are the reasons why you should use lumpsum calculator:

• The lumpusm calculator helps you to calculate the estimated maturity or future value of your investment.
• Calculating the lumpsum investment returns manually might result in human error. But a lumpsum calculator helps you avoid those errors.
• You can quickly calculate the wealth your investment created using a lumpsum calculator as it is easy to use.

Frequently Asked Questions (FAQs)

What is the value of 1 lakh after 20 years?

The value of a lumpsum investment of ₹1 lakh after 20 years depends on the expected rate of returns. Say, if the expected rate of returns is 20%, then investing ₹1 lakh as lumpsum today would be worth around ₹38.3 lakh in 20 years. Moreover, if we assume inflation to be 6%, your inflation-adjusted amount post-20 years would be ₹25.2 lakh.

Is lump sum a good option?

Lump sum and SIPs are the ways of investing in mutual funds and portfolio management services. So, a lump sum investment is a good option if you have a significant amount available to invest in one go. Moreover, it is also suitable for those who can stomach the market volatility.So, before opting for lumpsum investments do check your financial goals and risk profile.

How to save 1 cr in 10 years?

If you wish to accumulate ₹1 crore in 10 years, you need to invest ₹16.2 lakh as a lumpsum investment today. This is assuming that your investment earns a Compounded Annual Growth Rate (CAGR) of 20%.