Lumpsum Calculator
- Investment type
- Scheme based
Invested Amount
25,000
Estimated Returns
₹19,059
76%
Returns
Future value of your investment
₹44,059
Top performing Mutual Funds to Start Your Lumpsum Investment
| Scheme Name | 5 Y | Value Research | ||||
|---|---|---|---|---|---|---|
 Motilal Oswal Midcap Fund-Dir (G) | 39.45% | Invest Now | ||||
 Nippon India Power & Infra Fund - Direct (G) | 36.51% | Invest Now | ||||
 Invesco India Smallcap Fund - Direct (G) | 35.79% | Invest Now | ||||
 Edelweiss Mid Cap Fund - Direct (G) | 35.36% | Invest Now | ||||
What is Lumpsum Investment?
A lumpsum investment refers to investing a large sum of money in one go rather than spreading it out over time. This is a common strategy for investors who have a substantial amount ready to invest and prefer to take advantage of market opportunities immediately. Lumpsum investments are often used in mutual funds, stocks, and other financial instruments to capitalise on potential market growth.
In contrast, a Systematic Investment Plan (SIP) allows investors to invest a fixed amount at regular intervals, such as monthly or quarterly. While SIPs help mitigate market volatility by averaging out the purchase price over time, lumpsum investments provide the opportunity to benefit from market upswings when invested at the right time. Both SIP and lumpsum approaches have their advantages, and the choice depends on an investor’s financial goals, risk tolerance, and market outlook.
About Lumpsum Calculator
A lumpsum calculator is a valuable tool that helps investors estimate the future value of their lumpsum investments. With m.Stock’s free-to-use lumpsum calculator, you can quickly determine how much your investment may grow over time based on factors like expected return rates and investment duration.
Unlike a mutual fund lumpsum calculator, which focuses solely on mutual funds, the lumpsum return calculator can also be used to assess returns from various investment instruments. Many investors hesitate to make lumpsum investments, fearing market timing risks. However, in a rising market, investing through a lumpsum investment calculator allows you to purchase a larger number of fund units at once, maximising potential returns instead of averaging them out via SIPs. By using the lumpsum investment calculator, investors can make well-informed decisions and optimise their investment strategies.
How can a Lumpsum Calculator Help You?
A lumpsum return calculator helps you save both time and effort in manually calculating the future value of an investment and assists in faster decision making. A lumpsum calculator uses three basic parameters to calculate the future value of an investment:
- Lumpsum investment amount
- Number of years
- Expected returns
Here is an example to help you understand how a lumpsum calculator works. Suppose you have made a one-time investment of ₹1 Lakh in a mutual fund scheme for a period of 5 years, expecting a return of 15% p.a. In this case, the future value of your lumpsum investment will be ₹1,00,000*(1+15%)^5, which is equal to ₹2,01,136.
These inputs are processed using the compound interest formula:
- FV = Future Value of the investment.
- P = Principal amount (initial investment).
- r = Expected rate of return (in decimal).
- n = Number of years.
Steps for Using the m.Stock Lumpsum Calculator
Using the m.Stock lumpsum calculator is a simple and efficient way to estimate the future value of your investment. This tool helps you quickly calculate returns on a lumpsum investment, eliminating the need for complex manual calculations. Follow these steps to use the mutual fund lumpsum calculator effectively:
Visit the m.Stock lumpsum calculator page.
Enter the amount you wish to invest.
Enter the expected return rate of the fund.
Enter your preferred investment horizon.
That's it. The calculator will work out your returns and let you know how much money you can expect to get back at the end of the investment tenure.
Advantages of Using m.Stock Lumpsum Calculator
The m.Stock lumpsum calculator is a powerful tool designed to simplify investment planning and help investors make informed decisions. Here are the key benefits of using this lumpsum calculator:
- Compare Returns Across Mutual Funds
- The lumpsum investment calculator allows you to compare estimated returns across different mutual fund schemes over various investment horizons. This helps you choose the most suitable fund based on your financial goals.
- Better Financial Planning
- With the lumpsum calculator, you can estimate the potential future value of your investment. This helps in structuring your financial plan and setting realistic investment goals while accounting for market risks.
- Accessible Anytime, Anywhere
- The m.Stock lumpsum calculator is an online tool that can be accessed from any device with an internet connection. Whether you are at home or on the go, you can instantly check potential returns on your investment.
- Saves Time and Effort
- Instead of manually calculating returns, the lumpsum return calculator provides instant results, saving you time and effort. It eliminates the need for complex mathematical formulas, making it easy for investors of all levels.
- Ideal for Beginners
- The lumpsum calculator is especially beneficial for new investors who may not be familiar with financial calculations. It provides a simple way to understand how their investment could grow over time, helping them make more confident decisions.
By using the m.Stock lumpsum calculator, you can take control of your investment planning, explore various mutual fund options, and make better-informed financial choices.
FAQs
What is the definition of a lumpsum investment?
What is the difference between a SIP and a lumpsum investment?
While lumpsum investments are made at one go, SIP (Systematic Investment Plan) allows you to invest in smaller amounts every month.
When is a lumpsum investment preferred?
How can I invest a lumpsum amount?
To make a lumpsum investment in mutual funds, you need to open a demat account with m.Stock. This is easily done online, in a matter of a few minutes. After the account is active, you can visit the mutual fund's section on the m.Stock web portal or the m.Stock app to choose the funds to invest in, and click on lumpsum investment as the preferred mode of investment.
What are the benefits of SIP over lumpsum while investing in a mutual fund?
Both SIP and lumpsum investments have their own merits and limitations.
- SIP is a more disciplined way of investing that creates a healthy financial routine.
- You can start a SIP with as little as ₹100 every month.
- SIP purchase is made at monthly intervals with varying market conditions. This helps offset market volatility in the long run and provides the benefit of rupee-cost averaging.