![]() ![]() Based on their investment objective and risk appetite, they can select from a wide range of equity, debt, hybrid, fixed income, index, speciality, or any other type of mutual fund scheme. In other words, the investor invests the total amount in the preferred scheme at one go right at the starting of their investment period. Lumpsum As the name suggests, a lump sum mutual fund investment requires the investor to invest a lump sum amount in any scheme of their choice. Rolling returns are useful for measuring the relative and absolute performance of a scheme across all timeframes.īefore investing a lumpsum amount or starting a SIP, one should clearly understand how these investments work. After that, the returns for all the following dates are calculated. ![]() The rolling period starts with a specific date, and it’s calculated for the investment tenure. 4.Rolling Return Rolling returns refer to the annualised returns of a mutual fund on multiple dates for a specific timeframe. 3.Annual Return Annual returns refer to the percentage of returns earned in a year. 2.Absolute returns Absolute returns are total returns earned from the date of investment. Here are the types of returns- 1.Point to Point Return The return for a specific timeframe, such as one year, two years, etc., is called point to point return. Furthermore, investors must know the types of returns they can earn by making a lumpsum investment. Hence, a lumpsum calculator can help investors select the right investment instrument to meet their financial goals. The mutual fund lumpsum calculator helps an investor find out the maturity value for an investment based on the investment amount, tenure, and rate of returns. 500,000 is the initial investment and Rs. In this case, the expected amount after 10 years would be Rs. By simply entering details, like the investment amount, expected returns, and investment duration, the online tool will instantly generate the output. ![]() This is where the lumpsum calculator gets into the picture. 5 lakhs for 10 years in a scheme that can generate 10% returns every year and compounding twice a year, the estimated returns based on the formula would be as follows- A=500,000 (1+10/2) ^ 2x10 Manually calculating the answer to this complex equation can be very challenging. The calculator works on the following formula- A = P (1 + r/n) ^ nt Here,įor instance, if an investor wants to invest Rs. Based on these inputs, the online tool can instantly provide estimated returns for the investment. The lumpsum calculator requires the investor to enter details, like the total investment amount, expected return rate, and time period. ![]()
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