Lumpsum Return Calculator
Estimate the lumpsum return on your mutual fund investment in just a few clicks.
Total investment
₹
Time Period
years
Expected Return Rate (p.a)
%
Invested amount
₹ 25,000
Estimated returns
₹ 76,139
Total value
₹ 1,01,139
Disclaimer: Past performance is not an indicator of future returns
| Fund Name | 1Y Gains | 3Y Gains | 5Y Gains | Min invt. |
|---|---|---|---|---|
53.28% | 44.02% | 33.52% | ₹5000 | |
38.44% | 32.5% | 27.41% | ₹5000 | |
33.45% | 26.36% | 19.27% | ₹100 | |
35.39% | 23.49% | 17.33% | ₹100 |
What is Lumpsum Return Calculator?
A mutual fund Lumpsum Return Calculator offers a simple way to estimate your investments/corpus. Just enter your investment amount, duration, and expected annual return to quickly approximate your investment's value in seconds. Adjust the settings to see how your returns might vary.
How does a Lumpsum Return Calculator work?
Lumpsum return calculators for mutual funds work on the principle of future value. They tell you your investment's future value at a certain interest rate.
All lumpsum return calculators for mutual funds use a specific method to compute the estimated return on investment. It is essentially a compound interest formula, with one of the variables being the number of times the interest is compounded in a year.
F = P (1 + r/n) ^ nt
where
F = future value
P = present value of the invested amount
r = estimated rate of return (in %)
t = total duration of investment
n = number of times interest is compounded in a year
For instance, suppose you invest ₹10,00,000 in a mutual fund for 10 years, expecting an average return of 12% per annum. The interest is assumed to be compounded annually.
The formula for lumpsum investment return calculations can be used as follows:
F = ₹10,00,000 {(1+00.12/1)^10}
F = ₹31,05,848
Instead of manually calculating lumpsum investment return using this formula, an online Lumpsum calculator by Kotak Securities is a much simpler way of computing your investment value.
How to use Kotak Securities Lumpsum Return Calculator?
The Kotak Securities Lumpsum Return Calculator will show you the estimated returns on your investment along with the total value of the investment after your investment period in seconds. To use the Kotak Securities Lumpsum calculator-
- Enter your investment amount.
- Enter the duration of the investment.
- Then, enter the annual expected rate of return.
After all the input values, the calculator will show you the estimated amount you can avail after completing your investment tenure.
How can a Lumpsum Return Calculator help you?
-
Estimates Returns: It enables you to calculate the potential returns you can get from your investment using this formula:
F = P (1 + r/n) ^ nt
where F = future value
P = present value of the invested amount
r = estimated rate of return (in %)
t = total duration of investment
n = number of times interest is compounded in a year -
Saves Manual Effort: You can do immediate calculations for free, which saves you time and effort.
-
Decision Support: It can help you plan your investment based on the estimated returns you will get after the conclusion of the investment duration. However, it is essential to note that the results provided by the lumpsum return calculator are only estimates because mutual fund investments do not provide fixed returns.
FAQs on Lumpsum Return Calculator
What is the difference between Lumpsum and Mutual Fund investment?
Lumpsum investment involves investing a large amount upfront, while mutual fund investment, including SIP, allows regular investments in smaller amounts. Both invest in funds, but the approach differs in how the money is invested.
Why use the Kotak Securities lumpsum Calculator?
Kotak Securities Lumpsum Calculator assists in estimating potential returns from a one-time investment in mutual funds, providing insights into how the investment might grow over time.
How can the Kotak Securities Lumpsum Calculator help achieve financial goals?
It helps plan and set realistic financial goals by projecting potential returns from lumpsum investments, helping in informed decision-making aligned with individual financial objectives.
How does the Kotak Securities Lumpsum Calculator help choose the best mutual funds?
The calculator considers factors like investment amount, duration, and expected rate of return to estimate potential returns, helping users gauge the growth potential of different mutual fund schemes.
What is the minimum and maximum tenure for Lumpsum investment in Mutual Funds?
The tenure for Lumpsum investments in mutual funds is flexible, ranging from short-term (a few months) to long-term (several years), depending on the investors’ goals and the type of mutual fund chosen.
How to add money later in Lumpsum investment?
In a Lumpsum investment, additional contributions can be made separately from the initial investment, allowing investors to add more funds whenever they want.
What is better, Lumpsum or SIP?
Both approaches have their merits:
| Factors | SIP | Lumpsum |
|---|---|---|
Investment amount | Fixed amounts at regular intervals | Large single investment |
Investment goal | Aimed towards long term goals | Often aligned with short term objectives |
Risk appetite | Typically lower risk | Usually involves higher risk |
Market conditions | Effective in volatile markets | Better suited to bullish market conditions |
Cost averaging | Utilises rupee cost averaging | No cost averaging |
Timing the market | Doesn't attempt to time the market | Might involve market timing |
Flexibility | Offers more flexibility in investments | Less flexibility in investment schedules |
Returns | Moderately higher over the long term | Moderately higher over the short term |
Overall risk | Generally lower risk | Tends to involve higher risk |
Investment horizon | Focuses on longer term investments | Primarily aimed at shorter term investments |
Is demat account needed for Lumpsum investment?
For Mutual Fund investments, a demat account is not mandatory. Investors can choose direct plans without a demat account or regular plans through distributors or online platforms.
Does the Lumpsum Calculator provide an exact value?
The Lumpsum Calculator provides estimated returns based on inputs such as investment amount, duration, and expected rate of return. Actual returns might vary due to market fluctuations. The calculator offers projections, not guarantees.
