What Is MF Lumpsum Calculator?

HOW TO USE LUMPSUM CALCULATOR?

The lumpsum calculator permits investors to plan and manage their finances better more efficiently and also more effectively. The advantage with using a lumpsum calculator is that it saves the time spent in doing manual calculations and reduces the chances of errors.

Additionally, the lumpsum calculator is very simple so anyone with some basic computer skills can use it effectively. However, there is a risk factor about lumpsum calculators you must be familiar with. At the end of the day, mutual fund investments are subject to market risks and no prediction can be done with absolute accuracy and remains an approximation.

Key inputs required in a lumpsum calculator

A typical mutual fund lumpsum calculator will give output online based on some key inputs given. Here are the key inputs that you need to provide to help the lumpsum calculator to do its job in a jiffy.

• You must clearly define the amount of initial investment in rupee terms. This will be the starting point for your lumpsum calculator


• The period for which you are willing and in a position to stay invested in that particular mutual fund. You can mention that in number of years.


• The expected rate of return in terms of compounded annual returns that the investor expects. You can use last 5 year returns as reference point.


• In the case of non-mutual fund assets like bonds, you can also input the frequency of compounding. It makes a difference as we shall see.

How the lumpsum calculator actually calculates the final corpus?

FREQUENTLY ASKED QUESTIONS

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