Lump sum investments: An investor is advised to calculate the rate of return for all lump sum investments. The lump sum calculator helps you estimate the amount you will get at the end of your investment tenure.
Lump sum investment: A large number of investors choose to invest in lump sum investment as there are fewer transactions involved. photo: pixabay
Lump sum investment: Lump sum investment is a one time investment for a specific period in a specific scheme. In simple words, it is when a depositor invests a specific amount in a specific mutual fund scheme. A large number of investors choose to invest in lump sum investment as there are fewer transactions involved.
For example, if you get a good bonus or you are left with a lump sum amount after paying off all your pre-planned obligations and expenses and planning to invest, in that case you can invest the entire amount in a specific lump sum investment plan. can invest in.
If an investor is looking to invest for the long term and accepts the potential risk involved, then lump sum investment is recommended as a variable investment strategy.
An investor is advised to calculate the rate of return for all lump sum investments. The lump sum calculator helps you estimate the amount you will get at the end of your investment tenure.
An investment calculator also highlights whether a chosen investment plan will meet the financial goals for the specific investor or not.
It is generally chosen by those who have a large amount of money to invest. When one wants to make a lump sum investment, they can manage the time frame of their investment as per their risk appetite. People who want to invest a large sum of money often find lump sum investment more convenient. The power of compounding can help you leverage the interest earned on your investments for financial instruments such as fixed deposits.
lump sum investment in mutual funds
Jyoti Bhandari, Founder and CEO, Lowac Capital, said that when you invest in a low market environment, lump sum investment is more beneficial.
"Investing a lump sum amount during market highs can result in significant portfolio devaluation in the future. Instead, wait for more suitable market conditions when valuations are low," she said, adding that lump sum mutual fund investments have high risk tolerance and investment For experienced investors with a large sum of money is the way to go.
Lumpsum Investment Plan Calculator- How it helps?
Lump sum investment calculator helps investors to estimate the expected return, i.e. the future value of a lump sum investment after the investment tenure is over. The calculator is user friendly. These calculators give instant results for free and hence, save the investor's time.
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