You may or may not know but mutual funds have further types as well. It is further classified into Systematic investment plans and lump sum plans. Most people know about SIP schemes but not much about lump-sum schemes. In a SIP scheme, an investor makes an investment on an EMI basis but in the case of a lump sum, money is invested in one go.
What is a lump sum calculator?
If you are planning to invest your money in a lump sum mutual fund investment scheme, in such a case, a lump sum calculator can be a useful tool for you. This calculator will help you in having an idea of the return that you will be able to earn by putting your money in a lump sum scheme. You will only have to provide the required details such as the amount to be invested, the rate of return, and the maturity period, after providing all these details, you will get an approximate idea of the returns on such schemes.
How lump sum calculator is helpful?
A lump sum calculator is one of the tools that can help the investor to a great extent in choosing the right lump sum investment scheme. Being a lump sum calculator, you will be able to find that whether the investment plan that you have selected will be able to reach the financial goal that you expect or not. If you want to know about the benefits of a lump sum calculator, you can refer to the following points:
- By providing just basic details, you will be able to have an idea of the gains that you will be making. There is no need to make manual calculations, you will get accurate results. With the help of such results, you will be able to identify good investment plans and be able to make profits.
- There are different types of schemes having different maturity periods. In some schemes, even despite having a longer maturity period, you don’t get the expected return. Maybe in other cases, investment plans having a lower maturity period can provide you with the expected results. To grab such investment opportunities, all you are required to do is to identify such schemes. With the help of a lump sum calculator, you can identify such schemes.
- As long as, you will be using a calculator, you won’t be required to do manual calculations. This way, you will save your time and preventing mistakes. Because in manual calculations, you may have to do all the calculations all by yourself and there are also the possibilities of making mistakes. But in the case of the calculator, no such issues are there.
These are the benefits of using a lump sum calculator, however, you will be having an idea only. Because the mutual funds are subject to market risks, any change in market condition can affect the return as well and no one can give accurate predictions of the market. However, to know more about this calculator, you can go to the 5paisa website.
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