Lumpsum calculator

Lumpsum Calculator | Best Lumpsum Investment Calculator

A lumpsum calculator is a financial tool that allows investors to calculate their potential lumpsum investment returns on their one-time mutual fund investment. Here, lumpsum investment refers to a one-time investment of a large sum in a mutual fund (MF) scheme.

What is a Lumpsum calculator?

An MF lumpsum calculator is a financial tool that estimates the returns for investors on a lumpsum investment scheme. The lumpsum return calculator is a helpful tool in analysing the estimated return that investors can expect to earn through a lumpsum mutual fund (MF) investment over a given investment tenure.

How Lumpsum Investment Returns Are Calculated?

The lumpsum calculator uses different inputs as per the investor’s requirement to calculate estimated returns. These inputs include three components: Lumpsum investment amount, expected lumpsum investment returns, and investment tenure.

Using the above inputs in a mutual fund (MF) lumpsum calculator, investors can project their returns for their desired investment tenure. The important thing to note is that the lumpsum return calculator shows estimated returns. Hence, investors must know that the actual return on their lumpsum mutual fund can vary from the projected returns.

Formula For Calculating Lumpsum Investment Return

The lump sum calculator works on the concept of future value calculations of your investment using a required rate of return. The calculation of a lumpsum MF calculator can be summarised in the following formula:

FV = PV(1+r)^n

Where, 

FV = Future value

PV = Present value  

R = Rate of return

N = Number of years

Example For Return Calculation of Lumpsum Calculator

Ajay is a working professional in an MNC. He has a savings of ₹ 1,00,000 in his bank account and is considering investing it in a lumpsum investment scheme. Ajay is expecting a return rate of 14%, and he is looking to invest the capital for 10 years. Let us calculate the returns on Ajay’s lumpsum investment using the information given:

Inputs for the Lumpsum Calculator

Lumpsum Investment Amount - ₹ 1,00,000

Investment Tenure - 10 years 

Rate of Return - 14% per annum

Calculation

FV = PV(1+r)^n

FV = 1,00,000(1+.14)^10

Outputs from the Lumpsum Calculator

Total Investment - ₹ 1,00,000

Total Returns - ₹ 2,70,722 (270.7%)

Portfolio value - ₹ 3,70,722

We can infer from the above example that Ajay was able to estimate his returns using the mutual fund (MF) lumpsum calculator. As per the outputs given by the lumpsum return calculator, Ajay could yield a return of 270.70 % on a one-time investment of ₹ 1,00,000 over a 10-year investment period.

How Can A Lumpsum Calculator Help You?

A lumpsum mutual fund calculator can help you in various ways, which can be summarised in the following points:

• Compounding return
  A lump-sum investment calculator can assist you in estimating compounding returns on your investments. The output shown by a lumpsum calculator is derived through the compounding return method, leading to an accurate estimation of your investment’s future value.
• Inflation Hedging
  For long-term investors, earning returns higher than the inflation rate is the primary goal to enhance their purchasing power. Thus, you can use a mutual fund lumpsum calculator to project returns, which can offer a cushion against the inflation rate in the economy.
• Strategy building
  Using a lumpsum mutual fund calculator can assist you in creating a solid strategy for long-term mutual fund investing. You can do so by changing the inputs in the calculator and choosing the best results that best suit your investment goals.

How to Access the Univest Lumpsum Calculator?

The process of using the Univest lumpsum calculator is simple and straightforward. Read the points below to learn how to use the lumpsum return calculator

Step 1 - Open a search engine and search for Univest in it.

Step 2 - On the top ribbon of the webpage, click on the explore tab. 

Step 3 - From the resultant dropdown list, choose the calculator option. 

Step 4 - Now, choose the lump sum calculator from the available calculators.

How to Use the Univest Lumpsum Calculator?

Steps to use the Univest Lumpsum calculator:

Step 1 - On the lumpsum calculator webpage, enter the lumpsum amount,  return rate, and investment tenure to derive the estimated future value of your invested amount. 

Step 2 - Analyse your projected lumpsum investment plan and returns through the given pie chart and bar graphs for better understanding.

Step 3 - You can also change the inputs in the mutual fund lumpsum calculator as per your requirements to derive estimated returns for your investments.\

Benefits of Using The Univest Lumpsum Calculator?

Using the lumpsum investment calculator by Univest provides various benefits. Scroll through the points below to discover the lump sum calculator's advantages:

• Easy-To-Use Interface
  The lumpsum mutual fund calculator by Univest has been designed with a user-friendly interface. It makes the lumpsum return calculator easy for investors to navigate and use.
• Graphical Representation
  The Lumpsum MF calculator by Univest provides a graphical representation of your return projections. It results in improved investment analysis and portfolio building.
• Detailed Analysis
  By using the lumpsum return calculator, you can access detailed information about mutual fund (MF) lumpsum returns. You can access crucial data such as total investment, total returns (in per cent and absolute terms), and total portfolio value.
• Return projection for the long-term
  Mutual fund lumpsum calculator by Univest offers you the advantage of calculating your lumpsum investment returns for up to 40 years. It assists in creating a plan for long-term mutual fund investments.

Note - “Build a strong portfolio using the Univest lumpsum calculator”

Who Should Use the Lumpsum Calculator?

A lumpsum calculator has unique features that best suit the needs of a specific segment of investors. To learn more about such investors, read below:

• Sufficient Capital Availability
  Investors who possess a significant sum of capital, which can form a good base for compounding, can use a lumpsum return calculator. Using an MF lumpsum calculator enables them to analyse the potential lumpsum investment returns.
• Uncertain Income Stream
  Contrary to SIP schemes, which require a steady flow of funds, lumpsum investment, on the other hand, can be executed with a non-steady income too. Therefore, investors who do not have a regular income stream can use a lumpsum investment calculator to build investment plans.
• Lack of Financial Discipline
  Investors who lack financial discipline can choose to use the lumpsum calculator. It can help them avoid the stress of regular investing in SIP investments and results in building robust strategies for lumpsum investments of surplus funds.

What are Lumpsum Investments?

Lumpsum investment refers to a type of mutual fund investment method. Under this method, investors deploy a significant sum of capital in one go in a mutual fund scheme. Lumpsum investment is a helpful method for investors with surplus capital who wish to earn market-linked returns on this capital.

Under lumpsum investment, you tend to invest a fixed amount of capital once in a mutual fund scheme to earn lumpsum investment returns over the long term. However, the investment duration in the lumpsum method is not fixed, but a general trend suggests that a long holding period yields better returns.

Lumpsum Calculator Vs SIP: What are the Key Differences?

Now that we have a grasp of the lumpsum MF calculator, let us look at the difference between the lumpsum calculator vs SIP. These calculators are used to calculate the estimated return on a mutual fund investment; however, they differ based on their return calculation methods. Know more about the SIP and lumpsum calculator below:

Lumpsum Calculator

• Mutual fund lumpsum calculator, estimate returns for lumpsum investments.
• It calculates returns on investments for the entire capital invested in one go.
• It is suitable for investors with surplus capital who are not disciplined with their investment habits.

SIP Calculator

• The SIP calculator estimates returns for mutual fund SIPs.
• It calculates potential returns on funds invested at regular intervals, i.e., monthly or quarterly.
• SIP calculators are suitable for investors with a disciplined approach to investing with low capital.

Note - "If you're confused between SIP and lumpsum investment, check out our SIP Calculator to compare the returns."

Mistakes to Avoid While Using the Lumpsum Calculator

Avoid the following mistakes while using the online lumpsum MF calculator:

• Misinterpretation of projected returns
  Assuming that projected returns by the lumpsum calculator are guaranteed in the future is one of the biggest mistakes investors make. You must remember that the returns of a lumpsum mutual fund calculator are only estimations, and actual returns can deviate from these projections.
• Ignoring the inflation rate
  The returns projected by a lumpsum calculator do not factor in the inflation rate. Hence, the returns shown are not net of inflation, and you might get a lower yield on your investment at maturity.
• Not sticking to an investment plan
  Before using a mutual fund lumpsum calculator, you must ensure that you have a fixed investment plan. It helps you avoid getting lured by high return projections because of varying rates of return and investment amounts.

Conclusion On Lumpsum Calculator

• A Lumpsum calculator is an online tool to project the future value of your lumpsum investment. 
• Lumpsum investment refers to a one-time investment in a mutual fund scheme. 
• Lumpsum return calculators operate on the principle of future value calculations of your investments. 
• The Univest lumpsum calculator is available for free on the Univest website. You can access the lumpsum mutual fund calculator to estimate your return on your investment.
• The mutual fund (MF) lump sum calculator differs from the SIP calculators. The lumpsum MF calculator shows returns based on a single investment amount, whereas the SIP calculator shows returns for regular SIP investments. 
• Ensure that you avoid mistakes like misinterpreting returns or not factoring in inflation while using the lumpsum calculator.