What is a lump sum calculator?
If being a mutual funds investor, you are willing to assess your return on a particular mutual fund scheme then a mutual fund Lumpsum calculator can help you. It is a type of online calculator. If you are putting your money in a mutual fund scheme in one go then this calculator will be very helpful for you. You can know the future value of your money along with the interest of the present value of money that you will be putting in. In simple words, you can assess the estimated profit that you will be making on your present investment. This calculator is based on an inbuilt formula. In this calculator, you just need to fill the fields such as the investment amount, maturity period, the rate of interest, after filling all these fields, you will get the relevant results. If you are a rational investor instead of an aggressive investor then this tool is going to be very useful for you. It will allow you to identify the best scheme out of all the available investment schemes. However, you also need to know that this calculator can only provide you with an estimate of future profits. The outcomes of the investment may vary depending upon the market circumstances and the performance of the investment scheme in which you have put your money.
How a lump sum calculator helps you?
- It is one of the best tools that can provide you with the gain in your wealth over a specified period at a fixed rate of interest. Being a prospective buyer, you won’t be putting your money in an investment plan without having an idea of the gains. In such a case, this tool is going to provide you with the relevant results and choosing the best investment plan.
- Investment can be made in two ways, 1. SIPs and 2. Lumpsum.
In a SIP plan, you will be putting your money into an investment in a systematic investment plan and a lump sum scheme, you will be putting your money in one go. A lump sum calculator will be providing you with the relevant results in both cases.
- As already stated above, with the help of this tool, you can choose the best investment scheme. Furthermore, it will help in preventing the errors that are possible in manual calculations. If you are going to make this calculation manually then there is a possibility that you may either make mistake in the formula or the calculation. As a result of this, you may end up choosing the wrong investment scheme. You might put your money in a scheme with poor returns or you may miss a good investment opportunity.
- With the help of this calculator, you may find, more than one, good investment scheme, in such cases, you can make a portfolio of your investments.
These are a few uses of a lump sum calculator. If you want to use this calculator, you can visit the 5paisa website on the web.