Lumpsum Calculator

Lumpsum investment plan is an investment strategy that allows you to make a one-time payment into an investment product, instead of making periodic payments. This investment can be made from inheritance, savings, or the proceeds generated from selling an asset. After the completion of the investment, you are generally committed to holding this investment for a certain tenure of time in order to reap potential and optimum returns.

Lumpsum investment plans are a good option for you if you have a large amount of money and wish to invest it for a longer duration. It can provide you with an opportunity to take advantage of market fluctuations and potentially earn higher returns in comparison to investing smaller amounts periodically.

Here are some of the benefits of lumpsum investments:

• Reduced market timing risk: If you have a long-term investment horizon, investing a lumpsum amount can reduce market timing risk. This is so because you do not have to worry about missing out on potential gains if you wait to invest over time.
• Opportunity to take advantage of market fluctuations: By investing a lumpsum amount, you can take advantage of market fluctuations and potentially earn higher returns when the market is performing well.
• Simplicity: Lumpsum investing can be simpler than investing small amounts periodically because you make a one-time investment and do not have to worry about ongoing contributions.

A lumpsum calculator takes input of certain information like your initial investment amount, tenure, and the expected return rate. After you enter these variables, this tool uses a mathematical formula to compute the estimated return rate on your investment. This formula takes into consideration the compound interest formula, which calculates the interest on the initial investment amount and any interest amount earned over time. The formula is as follows:

A = P x (1 + r/n)^(nt)

Where,

A = the future value of the investment

P = the initial investment amount

r = the expected annual rate of return (in decimal format)

n = the number of times interest is compounded per year

t = the number of years the investment is held

This formula allows you to calculate an estimated future value of your investment depending on your input variables. It is also imperative that you ensure that the estimated return provided by the lumpsum calculator is only an approximation and may not be accurate enough. However, this calculator helps you compare several investment options and make informed investment decisions depending on the expected return on your investment.

Follow these steps to invest in mutual funds via a lumpsum investment plan:

Step 1: Download the Bajaj Markets App from the Playstore/App Store or visit the Bajaj Markets  Website

Step 2: Login using your mobile number

Step 3: From the “Investment” section, click on “Mutual Funds”

Step 4: Select the mutual fund you wish to start the Lumpsum Investment Plan in and click on “Invest Now”

Step 5: You will be redirected to a page displaying the fund details. Click on “Lumpsum”

Step 6: Select or type the lumpsum amount and click on “Proceed”

Step 7: Complete the payment through your preferred payment mode