Investors looking to invest their money in mutual fund investments are offered with two options in regard to the way in which they wish to invest in mutual funds. They can either make a one-time lumpsum investment or through regular investing plan offered by SIP (systematic investment plan). Though, the internet is filled with articles about SIP investment, not much is covered about the lumpsum mode of investment. What’s more, even less information is covered on mf lumpsum calculators. Well, this article will serve as your investment guide on lumpsum calculators. Read on to know more.

What is a lumpsum calculator?

A lumpsum return calculator utility tool that helps investors understand the value of their investments after a period. In simple terms, a mf lumpsum calculator does all the complex and complicated maths for you, and help you estimate expected returns on your mutual fund investments at the end of your investment tenure.

Benefits of lumpsum calculator

Here are some of the benefits of lumpsum calculator enjoyed by an investor when making a lumpsum investment:

  1. It can help you evaluate true value of your investments at the end of the investment tenure.
  2. It may help you manage your finances in a better way and also help you understand if you can achieve your financial goal in the stipulated investment duration.
  3. A lumpsum return calculator is quite easy and convenient to use, making it simple for even novice investors to enjoy its benefits.
  4. You can also adjust your investments against the apt inflation rate using the lumpsum calculator.

How to use a lumpsum calculator?

As mentioned above, lumpsum return calculators are quite easy to use. Usually, all lumpsum calculators have three input boxes, namely:

  1. Monthly investment amount
  2. Investment duration of the scheme
  3. Expected annual returns earned on the mutual fund scheme

Once, you enter the apt data against each input box, all you have to do is press on the calculate button. Once you do that, the lumpsum calculator will do its magic and offer you with the expected value of your investments within a matter of few seconds. Let’s understand the working of the mf lumpsum return calculator with the help of an example. Shilpa wishes to invest a lumpsum amount of Rs 5,00,000 in ABC mutual funds offering average returns at 12% per annum. She wishes to stay invested for a duration of 10 years. Shilpa does not want to get into the complex calculations involved in determining the estimated future value of your investment corpus. So, she instead uses a mf lumpsum calculator to help her derive the expected future value on her investments. Using the mf lumpsum calculator, she’d find that her corpus is likely to grow around Rs 15,52,924. However, she must be wary of the fact that this value is not adjusted against inflation. What this means is that this might not be true value of her investments after the end of the tenure. To get a clear picture of the value of her investments, she must click on the button ‘Adjust for inflation’. Happy investing!


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