This too is available on the official website of AFINOZ. 10 Best Funds for Lumpsum InvestmentĪdvantages of Using Afinoz Lumpsum Calculatorįree tool: Any investor can use this tool for free. On the other side, if you want to grow your wealth in a short span of time or don’t want to wait for longer, you can invest via SIP investment approach. Short- term investment: Many people want to park their money for 10 to 20 years hence, they can get good returns on investment if they invest through Lumpsum process. However, you will get great returns on your investment, but that will be lower as compared to Lumpsum investment. Contrary, with a SIP investment, you invest a fixed amount every month to get invested. Systematic investment vs one-time investment: Lumpsum investment requires a one-time investment and to get a bigger return, you must invest a handsome amount initially. On the other hand, SIP investment gets lower exposure to the compounding interest rate, hence, it provides lower returns as compared to Lumpsum investment. Higher returns vs lower returns: Lumpsum provides better returns on your investment as the invest gets more exposure to the compounding rate of interest. Suppose, you want to invest Rs 3 lakh for 2 years then you can plan your investment by investing Rs 12,500 each month for 24 months by the help of SIP calculator. SIP Calculator: The Systematic Invest Plan lets you invest a specific amount over a period of time by investing a fixed amount every month. Assume you want to invest Rs 3 lakh for the period of 2 years, you can invest whole amount for 2 years with the help of Lump-sum calculator. Lumpsum Calculator: Lumpsum is a mode of investment which lets you invest a substantial amount for a longer period for maximum returns. There are two methods which you can apply to calculate mutual fund returns: The Formula to Calculate Mutual Fund Returns When a person gets money as a one-time settlement of any dispute. When one receives money from a matured investment.When one gets money from sale of property/assets. When a salaried person gets yearly bonus.Best Time to Choose for A Lumpsum Investment In other words, he will get Rs 3,38,047 as the maturity amount. Suppose, Ramesh wants to invest Rs 3 lakh via lump-sum investment for 2 years at a 12% return, then he will get a return of Rs 38,047 over the investment of Rs 3 lakh. To understand it better, look at this case study: The above method is used to calculate the returns on mutual fund investment. Number of compounded interests in each year Present value or the amount you want to invest today
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