These days many people prefer to invest in mutual funds. Mutual funds investments are classified into two categories, Systematic Investment Plan and Lumpsum Investment. SIPs are becoming quite popular these days, so novice investors are very less aware of the term called lumpsum investment. Unlike SIPs, lumpsum investment means the investment made in a single scheme by paying the total amount in lumpsum i.e. single transaction.
Before investing, we always wonder about the returns. To be on the safer side, calculating the return on the investment is always the right option. So to calculate the return on lumpsum investment, the investors take the help of a lumpsum calculator. Though the calculations include complicated math, the investors can take the help of an automated lumpsum calculator which will do the job in an easy way in less time. To know how the lumpsum calculator works, you just need to mention some details asked by the calculator which includes the quantum of the investment, period of investment and expected rate of return on the investment made that the investor assumes on mutual shares. After entering all the details, the lumpsum calculator will do your task within seconds. If you are interested to spend a large amount, lumpsum investment is the right option for you as it requires a single transaction at a time.
Following are some of the points reflecting how mutual fund lumpsum calculator helps you:
- The right estimated return value- The lumpsum calculator will make sure to provide you with the right estimated returns for the whole investment period. You just need to mention the details like investment amount, time period or tenure and expected returns on the mutual fund. This calculator will help you to get the best-approximated value.
- Saves time- Human calculations are prone to errors plus it will take a lot of time to come to a result. Better is to take the help of a lumpsum calculator to know the estimated returns. The automated results will be beyond approximated results and you can rely on them.
- Best for novice investors- Who is new in the mutual fund world, the lumpsum calculator will act as a helping hand for them. This will help the investors whether to go for that investment or not.
- Long-term investments- If you are looking for long-term investments like 10-15 years, lumpsum investments are ideal for you.
- Easy finance management- Once the investors get to know about the right estimated returns, it gets easy for them to take their financial decisions. This helps them to easily plan and manage their finances.
So above are some reasons how one can make good use of a lumpsum calculator. Make sure to contact an online professional financial services provider before making any investment. You can contact ‘5paisa’ for online investments in stocks, mutual funds, bonds etc. They also provide lumpsum calculators on their website to get the right estimated returns for the overall individual investment.