ArthSangrah

Lumpsum Investment Calculator

📈 Calculate the future value of your one-time investment with ease
Total Investment (₹)
Expected return rate (% p.a.)
Time Period (in years)
Note: To see the chart, please view this in a larger screen
Estimated Returns
Invested Amount
₹ 2,50,000
Estimated Returns
₹ 5,26,462
Total Value
₹ 7,76,462
What is a Lumpsum Calculator?
A Lumpsum Calculator is a financial tool designed to estimate the potential returns on a one-time investment made in mutual funds, fixed deposits, or other investment options. It helps investors plan their investments efficiently by providing insights into expected returns based on factors such as investment amount, duration, and expected rate of return.
Features
  • One-Time Investment - Unlike SIPs (Systematic Investment Plans), lumpsum investments require a single payment, making them ideal for those with surplus funds
  • Compounding Benefits - Since the entire amount is invested at once, it enjoys the full effect of compounding over time
  • Long-Term Growth Potential - Lumpsum investments in equity mutual funds and other growth-oriented assets can generate significant returns over the long term
  • Market Timing Advantage - Investors can enter the market at an opportune time, potentially maximizing their gains if invested during a dip
  • Diversification Opportunities - Allows investors to spread their investment across various asset classes, reducing risk
  • Lower Transaction Costs - Since the investment is made in one go, there are fewer transaction charges compared to multiple small investments
Benefits
  • 🚀 Higher Returns Compared to Traditional Savings - Investing in mutual funds, stocks, or bonds through a lumpsum approach can yield better returns than a regular savings account or fixed deposits
  • 🎯 Simplified Investment Approach - Suitable for investors who prefer a hands-off approach rather than making multiple investments over time
  • 📈 Capitalizing on Market Growth - If invested in the right asset at the right time, lumpsum investments can generate higher returns due to market appreciation
  • ⏳ No Regular Commitment Needed - Unlike SIPs, lumpsum investments do not require recurring contributions, making them convenient for those who receive windfalls or bonuses
  • 💰 Ideal for Long-Term Wealth Creation - By leveraging the power of compounding, lumpsum investments can significantly grow wealth over the years
  • 🔄 Flexibility in Investment Choices - Investors can choose from various options such as mutual funds, stocks, real estate, or fixed deposits based on their risk appetite
Eligibility & Requirements
  • Who can invest?
    • Individuals – Residents and Non-Resident Indians (NRIs) can invest in lumpsum options like mutual funds, fixed deposits, and bonds
    • Minors – Can invest with a guardian’s supervision and approval
    • Senior Citizens – Eligible for lumpsum investments, with some fixed deposit schemes offering higher interest rates
    • HUFs & Trusts – Hindu Undivided Families (HUFs) and registered trusts can also invest in lumpsum instruments
  • Minimum Investment Amount
    • Varies based on the investment type and provider
    • Mutual Funds – Starts from ₹1,000 to ₹5,000, depending on the scheme
    • Fixed Deposits – Typically ₹5,000 or more, depending on the bank or institution
    • Bonds & Other Instruments – Minimum investment depends on the issuing body
  • Documents Required (KYC Compliance)
    • Identity Proof – Aadhaar, PAN card, Passport, or Voter ID
    • Address Proof – Aadhaar, Utility Bill, or Driving License
    • Bank Account Details – Canceled cheque or bank statement for linking investments
    • Recent Passport-Sized Photograph (if required by financial institutions)
How to Calculate Recurring Deposit Returns?
The formula for compount interest is:
A=P×(1+rn)ntA = P \times (1 + \frac{r}{n})^{nt}
where,

  • A=Final AmountA = Final \space Amount
  • P=Monthly InvestmentP = Monthly \space Investment
  • r=Rate of Interestr = Rate \space of \space Interest
  • n=Number of times interest is compounded per yearn = Number \space of \space times \space interest \space is \space compounded \space per \space year
  • t=Time in Yearst = Time \space in \space Years


For a Lumpsum investment, the number of times of compounding is 1 each year, i.e., compounded annually.

The total return is calculated using the following formula

A=P × (1+r)tA = P \space \times \space (1 + r)^{t}


where,

  • A=Final AmountA = Final \space Amount
  • P=Principal AmountP = Principal \space Amount
  • r=Rate of Interestr = Rate \space of \space Interest
  • t=Time in Yearst = Time \space in \space Years


By using the Lumpsum Calculator, investors can estimate their potential earnings and make informed financial decisions.