Mutual Funds are professionally managed wherein fund managers pool money from different investors and invest in securities. They may invest in Stocks, Fixed-Income Instruments, or both based on the fund’s investment goal. A Mutual Fund Investment is generally towards Equity and Equity-Oriented Instruments, Government and Corporate Bonds, Money Market Instruments, and Gold and Real Estate.
The fund manager handles it, and the Asset Management Company has a team of researchers who find suitable securities. Always invest in schemes based on your financial objectives and risks. For instance, you may be a conservative investor who wants regular income and capital safety. To do so, you need to opt for a proper investment mode. You could either opt for the Systematic Investment Plan or the Lumpsum method.
SIPs let you invest the funds at regular intervals for a fixed duration, while Lumpsum Investments require you to invest all the funds in one go. Thanks to online investments, you have calculators for SIP and Lumpsum Investments to determine the returns you would earn. Let us understand Lumpsum Calculator better in this blog.
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Overview
This tool lets the investor estimate the returns made through Lumpsum Mutual Fund Investment. It calculates the maturity amount for Lumpsum Investments made today. It also shows the probable wealth gain during the investment tenure for the amount invested at the start of the duration. Enter the amount you wish to invest, the expected return rate per year, and the horizon within which you want to remain invested.
Let us say you decide to invest Rs. 1 lakh for 30 years and expect a return of 12% yearly. The Mutual Fund Lumpsum Calculator computes the generated returns, i.e., Rs. 28,95,992 lakh, and the maturity amount would be Rs. 29,95,992 lakh. Learn about the calculator better through these FAQs.
How are SIPs and Lumpsum Different?
Lumpsums are one-time investments, while SIPs are done periodically. Lumpsum Investments do well in a rising market, and the current market conditions play an essential role here. Meanwhile, SIPs do not worry about the market conditions as it averages the cost of the units over time. You could opt for either of them based on your objectives.
Is it Possible to Convert Lumpsum to SIPs?
You can easily convert Lumpsum Investment to SIPs. This gets done through the platform you use. Set up your SIP on the platform and start investing at regular intervals.
Which is Better: SIP or Lumpsum?
Lumpsum Investments are ideal when the market conditions show an upward trend. However, with SIPs, you can enter during various market cycles. Investors here need not watch the market closely as they need to do for Lumpsum. Choosing either of the investment modes should depend on your requirements. Factors like income, financial stability, investment goals, and risk appetite decide the investment route.
What Is The Minimum Lumpsum Investment Amount?
Most Mutual Funds enable investments starting from Rs. 5,000. However, some schemes allow Lumpsum Investment starting from Rs. 1,000.
How does Lumpsum Investment Work?
Lumpsum allows investors to buy substantial units in one go. Market timing is crucial here. However, Lumpsum Investments generate compounding returns due to a longer time frame.
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