A mode of investment gaining popularity in the recent times is mutual funds – due to its benefits of being user friendly, easy to access, reliable management and much more. Online mutual fund is the primary reason why more and more potential mutual fund investors are choosing this way to start investing their hard earned savings and let it grow. It is convenient for them as with time, patience and the right financial advice, mutual fund investments can help one complete their desired financial goals. There are various methods for starting this form of investment, which one can choose based on their convenience. These two are broadly known as – SIP and lumpsum.
Depending upon the type and need of the investor – risk bearing capacity, mode and frequency of income and financial goals etc. can make them choose the appropriate way of investment.
Example – If it is a student starting his/her investment journey, mutual fund SIP seems to be the ideal choice as he/she can invest a part of monthly pocket money in a chosen mutual fund scheme with as small amount as Rs 500 a month.
On the other hand, if the investor has a substantial amount of savings ready to be invested, he/she can choose to make a lumpsum investment. In this case, the investor has to make a one time or bulk investment in a chosen mutual fund which can be an equity fund or debt fund. Once they have invested, the amount remains there and grows or falls with the market situation.
In order to make it simpler, one can use an online tool called lumpsum calculator, which makes an estimate on how much your lumpsum corpus could be after a certain time period. Here is how this tool can help you:
- Lumpsum calculator saves investors from the hassle of manual calculation, thus eliminating the possibility of human errors.
- It helps investors plan their finances more efficiently once they get an idea on how much they can expect from their lumpsum investments.
- The tool asks for simple details and gives an estimate in seconds to the investor.
- It provides investors with a fairly accurate estimate. It is not possible to give the exact numbers here as mutual fund investments are subject to market risks. But, the tool helps to understand an estimated figure that helps investors to plan ahead.
Let us understand with an example – Suppose, you invest an amount of Rs 5 lakhs in a mutual fund scheme for a period of 20 years. If the rate of return is say 12% p.a., your expected corpus in after 20 years would be Rs. 48,23,147. This calculation was done in seconds using the lumpsum calculator. Once you know your amount to be invested and the tenure, this online tool helps you in making an informed decision.
Investors or people contemplating on entering the world of mutual funds also tend to search for lumpsum sip calculator – although these are two separate tools. SIP Calculator helps one know the estimated corpus from their monthly, daily or quarterly SIP investments, after a certain tenure. And, the concept of lumpsum calculator has been explained above. These are tools which make mutual fund investments simpler and instill confidence in the investor.
Financial calculators are useful tools for better navigation in the world of mutual funds. In this read, we learnt more on lumpsum calculator or sip calculator and how it helps.
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