Lumpsum Calculator

SIP

One time

Total Investment

₹0

Expected return rate (p.a)

Time period (Y)

Lumpsum Calculator

Understanding mutual fund investments can be a challenge for a novice investor. It takes a bit of effort to understand its various aspects, such as how to invest and when, and how much one should invest based on your risk profile and goals.

It is important to learn what type of investment options are available, and how to calculate the estimated returns on your investment.

You can invest in mutual funds in two ways - a lumpsum investment, or an SIP. When you invest a specific amount in a mutual fund in one go, it is called a lumpsum investment. A Lumpsum investment is different from a SIP (Systematic Investment Plan), the latter involves recurrent payments, which can be made monthly, quarterly, or yearly. A Lumpsum calculator uses a formula to compute the estimated ROI (Return on Investment).

What is Lumpsum Investment?

A Lumpsum investment is a popular method to invest in financial instruments such as equity, life insurance, mutual funds, and fixed deposits, among others. The investment of a large chunk of money in a financial instrument all at once, as opposed to several smaller payments, is known as a Lumpsum investment.

Investing with a Lumpsum is a popular strategy amongst individuals who get a bonus at the end of the financial year. It is a good method of long-term investment. An investor with a high risk appetite may wish to invest a large sum in a mutual fund scheme.

You must still invest in accordance with your financial objectives, risk tolerance, and time horizon. One-time investments are inappropriate for short-term investments. If you lack confidence in your ability to manage significant sums of money, you may choose a systematic investment plan (SIP) that staggers investments over time. It helps you ride the market volatility. The decision to invest a large sum of money depends on the requirement for funds.

Use Kuvera’s Lumpsum Calculator to know the value of your isnvestment at the end of a certain tenure when you make a Lumpsum investment in any mutual fund.

What is a Lumpsum Calculator?

Before investing in a mutual fund, it is imperative to calculate the estimated returns on the total investment for a particular period. A lumpsum calculator helps you determine the maturity value of the net amount invested in a mutual fund.

Kuvera’s Lumpsum calculator is a free online tool that automatically calculates the maturity amount for a given lumpsum investment, expected rate of return and investment period.

The process is quite simple. Enter the investment amount, expected return rate, and investment period. The lumpsum return calculator will show the estimated rate of return based on the total amount invested.

Formula to Calculate Lumpsum Returns

A lumpsum investment calculator uses a formula to compute the estimated return on investment. It is basically a compound interest formula:

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

where 'A' is the estimated return, 'P' is the present value, 'r' is the rate of return, 't' is the duration of investment, and 'n' is the number of compounded interests in a year.

Let's understand this with the help of an example:

If you are investing INR 45 lakhs in a fund assuring you a 12% return for 5 years, compounding every 6 month, then using the above formula:

A = 10,00,000 (1+ 12%) ^ 5

It is a complex equation that is not easy to understand for most investors. A lumpsum calculator solves this equation within seconds and calculates the estimated return on investment, which will be INR 7,62,342 and total value of your investment after 5 years will be INR 17,62,342.

What are the Differences Between Mutual Fund Lumpsum Investments and SIP?

The major difference between lumpsum investments and SIP is the cash flow.

A Lumpsum is an all-at-once large chunk investment, whereas a systematic investment plan (SIP) makes periodic, spaced-out investments. Typically, in a rising market, a Lumpsum investment strategy using mutual funds typically performs well. On the other hand, because a SIP investment averages the cost of the units over time, one should not worry about market conditions. Depending on one's investing goals, one can invest in mutual funds via SIP or Lumpsum. The question is which investment option to choose and what are the benefits and drawbacks of each of these options.

When Should You Opt for a SIP?

Investors in mutual funds can invest a smaller, predetermined amount periodically under the Systematic Investment Plan. One can also begin investing in SIPs with a one-time investment plan and then continuing only with periodic investments.

Being an investor, you must keep the following aspects of a SIP in mind before you choose a recurring payment plan:

1. The average investment cost decreases because the investment is carried out over time. As a result, economic uncertainty has the slightest impact on mutual fund investments made through SIP in the long term.

2. The SIP contribution is routinely withdrawn from your bank account and invested in the mutual fund plan. SIP, therefore, promotes a disciplined investing attitude.

3. SIP reduces the overall cost of investing because you get extra units when the market drops. As a result, the probability of long-term earnings is more substantial.

4. An SIP can be paused or temporarily suspended, or you can withdraw a part or full amount of the investment in SIP. To invest in mutual funds, one can choose a sum as low as INR 500 to invest monthly.

SIP vs Lumpsum

Parameter	lumpsum	SIP
Number of investments	One-time	Periodically which may be fixed or variable
Investment horizon	Depends on your financial goals/investment objectives and the market volatility index	Depends on your financial goals/investment objectives but is somewhat immune to the market volatility in the long run.
Investment cost	Requires high one-time investment	One can invest in SIPs with a nominal amount of INR 500
Average costs	An Investor does not get a chance to avail of any benefit of rupee cost averaging	As no one can accurately time the market, investors pouring their money into SIPs enjoy the advantage of rupee cost averaging by purchasing funds at different market cycles.

Benefits of Lumpsum Calculator

An experienced investor will always check if the particular investment matches their financial goal at the end of the term. The lumpsum calculator is the best option to calculate the estimated returns.

There are many advantages to using a lumpsum calculator:-

It provides the investor with details of the estimated return within seconds.
You can acquire a general notion of an investing strategy using an assessment through an investment calculator. However, because the conclusion depends on market conditions, it won't offer precise findings in the case of mutual funds.
It is a time-saving tool since, as you are aware, technology simplifies everything and spares you the time and labour of performing calculations by hand.
It makes it easy to plan for various investment objectives based on expected returns.
When a person understands their future earnings, they become prudent in managing their overall resources and select an appropriate investment option.
The lumpsum calculator facilitates investors in selecting and comparing mutual fund schemes that help them reap maximum returns beating inflation.

However, it is important to understand that the returns calculated are only an estimation. A mutual fund is subject to market risks, and the actual returns may be different from the calculated return.

What Is CAGR? How Does a CAGR Calculator Help?

The term CAGR (Compound Annual Growth Rate) describes the average yearly growth of an investment over a given time period. A lumpsum CAGR calculator is a helpful tool to calculate the compound annual growth rate of the investment over the years. To calculate CAGR, you must supply the following information:

Initial investment amount
Ending investment amount
Duration of investment

Calculator computes the data and produces the result instantaneously.

Features of Lumpsum Investment

1. Minimum Investment Amount

Although a lumpsum investment is simple and does not have typical terms and conditions, most mutual funds have a minimum requirement of INR 5,000. However, following the first lumpsum investment, you can typically continue to invest in the same scheme in multiples of INR 1,000.

2. Planning Horizon

A lumpsum mutual fund investment can be held for a prolonged period. You can invest money in a debt or a liquid fund if you want to make short-term profits while maintaining liquidity or invest during a major correction after consulting your financial advisor.

3. Stock Market Volatility

A lumpsum investment is affected by stock market volatility. When the stock market falls, your investments could also suffer. Putting all your money into a single stock can also amplify your returns if the market shows bullish sentiments. However, it is not suitable to put all your money in one basket, diversification and long-term financial planning is essential. We, at Kuvera aid you to make a sound decision as per multiple investment goals such as marriage, education, retirement, etc.

Conclusion

The stock market may always remain volatile amid the uncertainty in earning growth and tightening in liquidity. Some investors believe that investing large sums in one go may not be a good idea. However, others believe that making a lumpsum investment in a mutual fund will lead to higher returns.

Only if you understand the concept of risk management, have sound financial expertise, clear financial vision as per your experience, and are willing to stay invested for the long-term, you may consider Lumpsum investments. One of the best and simplest ways to use a lumpsum calculator and calculate the return on investment is by signing up for Kuvera.

Kuvera offers an intuitive lumpsum calculator and helps you find the best SIP and mutual fund plans to yield maximum returns!

FAQs

Direct Scheme	5-Year Return	AUM (INR) (Cr.)
Aditya Birla Sun Life Medium Term Fund	8.37%	1,632.27
SBI Magnum Medium Duration Fund	7.69%	9,320.60
ICICI Prudential Medium Term Bond Fund	7.35%	6,361.68
Axis Strategic Bond Fund	7.34%	1,686.48
HDFC Medium Term Debt Fund	7.14%	3,624.14

Online investing in India simplified - Kuvera

Are you looking to invest in direct mutual funds or stocks?

Welcome to Kuvera — the first 100% free online investment and financial planning platform. Discover the best investment options without subscription fees, hidden charges, or commissions, and give more power to your investments.

At Kuvera, we make investing easy, and the experience awesome. Benefit from our AI-powered technology to super-charge your investments. Set your financial goals, invest in only direct plans, minimize your long term tax impact through tax harvesting, manage family accounts, consolidate your entire investment portfolio, and more.

How to Select and Invest in the Best Mutual Fund Plans in India?

Starting your investment journey with mutual funds can be challenging. At Kuvera, we make it easier with goal planning, selection of funds, tax optimisation, and more. Create your financial goal to know the required investment amount as a lump sum and/or SIP and check out our intelligent recommendations of funds. Or choose your preferred MFs and get started. Kuvera is an online investment platform that offers direct plans with zero commissions and charges zero subscription fees.

Are you searching for the best direct mutual funds to invest in?

The Kuvera app is one of the best mutual fund apps you can use to select investments for your portfolio. Simply follow the given steps:

Step 1: Download the Kuvera app on your smartphone, or sign up on our website with your email id and mobile number. Step 2: Get on board with our quick and simple KYC flow. Step 3: Go to 'Invest' and discover direct mutual funds based on your requirement.

There are several ways to find the best-performing mutual funds on Kuvera. Explore different categories of mutual funds based on your risk appetite, including equity, debt, and hybrid funds. You can also consider investing in global funds and NFOs through Kuvera.

You can also plan your specific financial objectives like owning a home, child’s education, a dream wedding, or building a retirement corpus through goal-based money investment. Enter the amount required for your goal, and the time you have. Viola! Kuvera will tell you how much you need to invest and the best mutual fund schemes that will help you accomplish the goal.

Keep Track of Top Stocks with Kuvera

To maximise your wealth, the key is to find stocks that have the potential to outperform the market. Before buying, you need to do thorough research on the stock's fundamentals. Kuvera makes it easy to find the best shares to invest in with all the necessary details in one place.

Search for any stock and track share prices on the Kuvera app. Keep an eye on stocks that are top gainers/losers for the day, or ones with 52-week highs or 52-week lows, along with total market capitalization.

Click on any stock you want to analyse on the Kuvera, the best investment app, and get all the details you’ll need.

The stock’s real-time price
Day’s high
Day’s low
52 week high
52 week low
1-year return
5-year return
Price-to-earnings (PE) ratio
Price-to-book (PB) ratio
Earnings per share (EPS)
Market cap
Trading volume
Dividend yield

You can also check the company’s detailed history and its financials, including the balance sheet, income statement, and cash flow. What’s more, you can also compare these details of stock with industry peers on the Kuvera app.

Import your stock portfolio on Kuvera and get a single view of all your investments. Track MFs, stocks, FD and insurance - all on one dashboard.

International Money Transfer with the Kuvera App

At Kuvera, we offer a faster and more affordable option for international money transfer through our partner Wise (formerly Transferwise). It is a smarter alternative to traditional international transfers and makes it easy to send money to your loved ones.

In contrast to some providers who sneak a markup into the exchange rate, Wise uses an exchange rate provided by Reuters to ensure fair and low-cost transfers. There are no hidden charges involved, and you can track the status of your transfers.

Transfer your money online using Wise through these few simple steps:

Step 1: Create a free account with Wise on its website or app. Step 2: Enter the transfer amount and your bank details. Step 3: Input account details from the Kuvera app. Step 4: Enter the rest of the required details and click ‘Confirm’. Step 5: Pay for your transfer using your preferred payment method.

In addition to the various benefits of transferring money through Wise, you can win an Amazon Pay Gift Card worth Rs. 1000 on your first international money transfer.

Invest in fixed deposits with the Kuvera App

Fixed deposits are one of the oldest and safest investment options offered by financial institutions. As an individual, you may want to diversify your portfolio by investing in such safe and fixed-income investments. That is why the Kuvera app lets you compare interest rates and invest in FDs.

Fixed Deposit facilities offered by Bajaj Finance Limited (“BFL”), Shriram Finance Limited ("Shriram") and Mahindra Finance Limited ("Mahindra") through commercial arrangements between Vueark Technology Services Private Limited (“VTSPL”), a 100% subsidiary of AASPL, and each such Fixed Deposit issuer.

To invest in FDs through the Kuvera app, follow the given steps:

Step 1: Go to the ‘Invest’ section and click on FD. Step 2: Find the best FDs for your investment based on your preferred tenure. Step 3: Click on the name of the investment to view the details, and then select 'Start FD'. Step 4: Enter the investment amount, tenure, and deposit option (cumulative/non-cumulative), and click on ‘Continue’. Step 5: Add details of your bank account to start investing.

You can compare FDs with similar tenure on the Kuvera app to find which financial institution is offering the best interest rates. Moreover, our app lets you calculate your returns from investments.

Why Choose Kuvera?

Are you looking to invest in direct mutual funds or stocks?

By investing in direct plans on Kuvera, you can earn up to 35% more in 20 years as you do not have to pay any commission ever.

For a longer answer, take a look at some of the benefits you will get by investing through our website/app.

100% free platform: A big reason why people consider Kuvera to be the best investment platform in India is that we impose no charges/fees. Kuvera’s online platform is completely free to use, with no feature locked behind a paywall. There are no fees, hidden commissions, or AUM linked charges
On your side: At Kuvera, we want you to invest at your own pace and comfort. We enable you to become your own wealth manager. And that’s why we created an investing experience that has no place for any #FOMO or pressure. You won’t find “hot tips”. Kuvera is your safe space to invest.
Switch to direct plans with Tradesmart: Regular plans for mutual funds can be cumbersome and expensive. But, what can you do if you already have one? We offer Tradesmart, which lets you switch to direct plans of the same plan. Now, you have no need to continue paying commissions.
Achieve your financial goals: Everyone has a dream, which might involve owning a car, purchasing a new home, sending kids abroad for education, or having ample funds after retirement. With Kuvera’s goal-based investment, you too, can make your dreams a reality.
Better account management: With Kuvera’s automated tracking facility, you can easily track your entire investment portfolio. You can also let your financial advisor guide your investment decisions by adding him/her as a manager to your Kuvera account.
Manage your family’s account: You can add multiple accounts to your login ID, which will allow you to look after your family members’ investments.

Kuvera is the one platform for all your investment needs. We have an experienced team of data-driven ex-money managers and technologists who understand your investment-related requirements.

Frequently Asked Questions

1. Can I start an SIP using the Kuvera app?

Yes, you can start a Systematic Investment Plan (SIP) using the Kuvera platform. Create your goal to get our recommendations, or find an MF of your choice. Select it and enter the amount for SIP and / or the lump sum amount you want to invest. If you do not have a folio, you can create a new one to start investing.

2. What is the use of following goal-based money investment?

It is common to spend money impulsively on things like a fancy gadget or an expensive vacation and end up not having enough funds for the important stuff. A goal-based investment prevents this as you are less likely to take money away from your goal of child’s education or retirement. When the money is tagged against a goal, we get more committed to ensure the financial goal is on track.

3. How do I create my financial goal on Kuvera?

To create your financial goal, follow these steps:

Step 1: Go to Create a Set a Goal Step 2: Enter an estimated cost of that goal. Step 3: Enter your age, investment period, planned loans, and upfront investment (if any). Step 4: Kuvera app will show the required monthly investment for this goal. Step 5: Add this goal to view recommended investments.

4. How does Kuvera’s Tax Harvesting technique work?

Tax Harvesting is a technique that involves benefitting from LTCG tax on equity funds. Long-term capital gains earned from equities and equity-related investments are taxable at a 10% rate on returns above Rs. 1,00,000 in a financial year. If you sell and buy back part of your investments every year, you can save on taxes. This utilises the ₹1 Lakh annual LTCG exemption by selling and buying back part of your investment such that you “realise” gains and not pay taxes on the exempt Rs 1 Lakh of LTCG. At Kuvera, we monitor your portfolio and recommend a transaction when applicable. We use sophisticated modelling to decide when is the right time to harvest taxes. Then we recommend the transactions you need to execute to harvest LTCG.

5. Why would I want to switch from a regular plan to a direct plan for mutual funds?

In regular plans, you pay commissions to the broker or the distributor, which can be as much as 1.5% of the value of your holding, every single year. This 1.5% leakage can make a huge difference, if you look at the compounded value over years. By investing in Direct Mutual funds, you save this commission every year. If you compare an investment of Rs 1 lakh in a Direct Plan and a Regular Plan, your investments will be worth 35% more in just 20 yrs when you invest in Direct Plans.

Direct MF plans are better than regular plans because they generate higher returns, have higher NAV, have no risk of mis-selling and give you full control of your investment.