A lumpsum calculator is a tool that helps you estimate the future value of your investment if you invest a large amount of money at once. It can be useful for planning your financial goals and comparing different investment options.
Do you have a lump sum of money that you want to invest wisely? Maybe you received a bonus, inheritance, or lottery prize and you are wondering how to make the most of it. Or maybe you have been saving up for a long time and you are ready to put your money to work.
One of the best ways to grow your wealth is to invest in mutual funds, which are professionally managed portfolios of stocks, bonds, and other securities. Mutual funds offer diversification, liquidity, and convenience, as well as the potential to earn higher returns than traditional savings accounts.
But how do you know how much your lump sum investment will be worth in the future? How do you compare different mutual fund schemes and their expected returns? How do you factor in the effects of compounding, inflation, and taxes?
This is where a lumpsum calculator comes in handy. A lumpsum calculator is an online tool that helps you compute an estimated value of your mutual fund investment based on the following inputs:
- The amount you are willing to invest (the lump sum)
- The expected rate of return per annum (the annual interest rate)
- The time period for which you want to stay invested (the tenure)
Calculating Your Investments With The Lumpsum Calculator
The lumpsum calculator uses a simple formula to calculate the future value of your investment:
Future Value = Lump Sum x (1 + Rate of Return) ^ Tenure
For example, let's say you have Rs. 10 lakh that you want to invest in a mutual fund that offers an average annual return of 12%. You plan to stay invested for 10 years. Using the lumpsum calculator, you can find out that your investment will grow to Rs. 31.06 lakh at the end of 10 years.
You can also use the lumpsum calculator to compare different mutual fund schemes and their returns. For instance, if you invest the same amount in a mutual fund that offers a lower return of 10%, your investment will grow to Rs. 25.94 lakh at the end of 10 years. On the other hand, if you invest in a mutual fund that offers a higher return of 15%, your investment will grow to Rs. 40.46 lakh at the end of 10 years.
The lumpsum calculator helps you to get a rough idea of the future value of your lump sum investment, but it is not a substitute for professional financial advice. You should always consider your risk appetite, investment horizon, and financial objectives before investing in any mutual fund scheme. You should also review your investment portfolio periodically and make adjustments as per your changing needs and market conditions.
How to use Samco online Lumpsum calculator?
Access the Samco lumpsum calculator on Samco’s website. Upon reaching the calculator page, carefully input the precise ‘Total Investment’ amount you plan to make. Next, provide the ‘Expected Return Rate’ per annum in percentage, reflecting your anticipated earnings from the investment. Following that, enter the ‘Time Period’ in ‘year’ format, indicating the duration for which you intend to hold the investment.
Upon inputting these parameters, the calculator will generate detailed results, presenting information such as the Invested Amount, providing a clear breakdown of your initial contribution, the Estimated Returns, offering insights into the expected profits, and the Total Value, summarising the overall worth of your investment based on the provided details. This comprehensive tool by Samco aims to offer a thorough analysis of your lumpsum investment, aiding in better decision-making.
Advantages of using Samco Lumpsum calculator
A lumpsum calculator is a tool that helps you estimate the future value of your investment if you invest a large amount of money at once. Some of the benefits of using a Samco lumpsum calculator are:
- It helps you determine how much money you need to invest to achieve your financial goals.
- It shows you the impact of the investment duration and the expected rate of return on your wealth gain.
- It is easy to use and provides a reasonably accurate estimate based on the compound interest formula.
- It enables you to plan your finances better and compare different investment options.
Therefore, a lumpsum calculator is a useful tool to get an approximate idea of your investment returns, but it should not be the sole basis of your investment decisions. You should also consult a financial advisor and do your own research before investing your money.
Other Calculators
Easy & quick