Lumpsum Calculator

Lumpsum Calculator

Investments in Mutual Funds can be broadly classified into two types- lumpsum and SIP. A lumpsum investment is when the depositor invests a significant sum of money on a particular mutual fund scheme in one go instead of monthly investments / SIPs. SIP or Systematic Investment Plan, on the other hand, entails the investment of smaller amounts on a monthly basis.

How to use NISM’s Lumpsum calculator?

The Lumpsum Calculator ask the user to enter following three inputs: –

1. Annual Investment – The amount one wish to deposit every year in a desired MF scheme for a stated tenure.
2. Expected rate of return (per annum) – The interest rate one can expected on invested amount during the tenure of the investment.
3. Time Period / Tenure ( In Yrs) – The number of years for which user money will stay invested with MF AMCs.

The Lumpsum Calculator generates the following output for the user: –

• Total Invested– It let the user knows how much money s/he invested as principal amount during the investment period.
• Interest earned – It generates how much interest income added to investor portfolio on account of invested money.
• Total Value of Investment – It shows how much is the value of investor portfolio after the tenure of the investment. It includes the principal invested and interest earned thereon.

It calculates the interest amount based on compound interest. All the interest payments are considered as received at the end of the period. It ignores any exit load charge by AMCs in case of early withdrawal.