# Lumpsum calculator

# Best lumpsum investment calculator online

Precise estimates for one-time payments

Total Value

₹77,646

Total Investment

Expected return rate (p.a.)

Time period

Your returns

0.0%

Total Investment

Estimated Return

*This amount is calculated on 12% p.a. for the span of 10 yrs.

Total Investment

₹25,000

Estimated Return

₹52,646

Total Value

₹77,646

Your returns compared with Univest

Univest PRO

₹344646

Others

₹77646

## What is lumpsum investment?

## Comparing SIPs and lump-Sum investments

**Systematic Investment Plans:**

**Pros:**

- Investment in SIPs helps in inculcating regular and disciplined investing habits among investors.
- The investment amount can be as minimal as Rs. 500, which makes SIPs a great investment approach for everyone, thus reaching a wider population.
- Since the SIPs are based on the concept of Rupee Cost Averaging, market fluctuations can be navigated easily, thus mitigating the risk associated with adverse market conditions.
- SIP mutual funds are managed by experienced finance professionals who are well-versed in dealing with various market conditions. This provides more intellectual decisions, thus eliminating the need for individual investors to devote time and effort.

**Cons**:

- The returns are entirely based on the overall performance of the mutual fund and the investment decisions taken by the mutual fund manager. There is less scope for decisions based on the personal intuitions of the investors with respect to the market trends.

- SIP investors have less control over the NAV at which units are purchased as the date of SIP investment is predetermined.
- Some mutual fund houses might charge transaction costs on every SIP amount paid.
- The entire mutual fund might take a downturn even if some of the stocks are underperforming. This can reduce the potential returns that could be earned otherwise.

**Lump sum Investments :**

**Pros**:

- In the case of lump sum investments, investors have complete control of the timing of investment in accordance with the market situation. They can decide when to make the investment. In simpler terms, lump sum investment allows investors to invest when the market is favourable.
- Some investors might not be comfortable with regular investment requirements. Thus, lump sum investments allow such investors to make huge investments in one go.
- Investors can enjoy comparatively higher autonomy while managing their investments due to negligible dependency on professional mutual fund managers.
- Sometimes, lump sum investments can also provide quicker and higher returns when markets are following a bullish trend.

**Cons:**

- While investing a lump sum amount might have potentially higher returns, it is a one-time investment. Due to this, individuals can not develop a regular saving habit.
- It requires a comparatively huge amount, which is not a feasible option for lower-income individuals.
- Since it is a one-time investment, market timing is a significant factor in determining the returns earned on a lump sum investment.
- A thorough analysis of the market trends must be done in order to ensure high returns. Lack of professional experience among investors might lead to huge losses due to improper decision-making in lump sum investments.

For better clarity, let us take an example:

Investor A invests a lump sum amount of Rs. x and Investor B begins an SIP of Rs. y on 29th December, 2023. The market follows a bullish trend for the next month. On 29th January 2024, Investor A must have earned a significant amount of return. However, investor B might not have had huge returns as he invested a smaller amount in a SIP. In such cases, lump sum investments are beneficial.

On the other hand, if the market had followed a bearish trend, Investor A would have incurred huge losses whereas Investor B’s loss would be significantly lesser, in such cases, SIPs are beneficial as they prevent huge losses in short-term horizons.

## What is lump sum calculator?

## Benefits of using a lump sum calculator

**Estimation of the Future Value:**As the name suggests, the primary advantage of using a lump sum calculator is that it allows the investors to estimate the potential returns and the expected future value of their lump sum investment. Having clarity with respect to future returns will help them make informed investment decisions so they can align their financial goals accordingly.**Convenient:**Since there are no technical terms to be input while using an online lump sum mutual fund calculator, it is easier and more convenient for investors to estimate the returns on their lump sum investments.**Reliable:**Online lump sum SIP calculators are a reliable source to compute the future prospects of a lump sum investment made.**Comparison of different strategies:**Lump Sum calculators provide an advantage of analysing different scenarios considering various strategies like altering the lump sum investment amount or the total tenure of investment. This analysis of multiple scenarios helps investors to make financial plans as per the availability of funds and the time horizon.

## How to use lump sum calculator?

Using an Online Lump Sum Calculator is simple. Here’s a guide for you to make use of it:

- Open a Lump Sum Calculator online, either on your mobile or laptop.
- Input the principal amount, that is, the lump sum investment you want to make.
- Enter an accurate annual rate of interest in percentage terms.
- Set the total number of years you want to invest.
- Once all the required details have been entered, click ‘Calculate/Proceed’.

By following these steps, you can easily calculate the returns using an Online Lump Sum Calculator.

## Conclusion

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FAQs

What is the difference between Lump Sum and SIP?

How accurate is the Lump Sum SIP Calculator?

What is a lump sum mutual fund calculator?

Which is more advantageous - SIP or lump sum investment?

What is the formula to calculate returns on lump sum investment?

### The formula to calculate returns on lump sum investment is as follows:

**A = P(1+r/n)^nt**

Where,

A is the amount of expected return made by the lump sum investment

P is the present value of the invested amount

r is the annual rate of return

t is the total tenure of the investment

n is the frequency of compounding interest