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Lumpsum investment or one-time investment is a style of investment in which you invest once (lumpsum) and allow your invested money to generate compounding returns over a given time frame.
With a Lumpsum calculator, you can calculate the maturity value of your investment. In other words, the Lumpsum Calculator tells the future value of your investment made today at a certain rate of interest.
For example: If you invest ₹1 lakh for 60 years at 15% rate of interest, then according to the Lumpsum calculator, the future value of your investments will be a mindboggling ₹43.8 crore after 60 years.
Our Lumpsum calculator is so convenient to use that even a layman can use it. You just need to enter the required inputs such as:
Value = Investment × (1 + R)N
Ideally, any investment (whether lumpsum or SIP) should be done keeping in mind various things like current income, risk profile, age, tax constraints, liquidity needs, time frame, and other unique constraints.
Lumpsum investment is preferred when one has a large amount of surplus funds and more importantly if they think that the market has majorly corrected or won’t fall just after making the investment. Lumpsum investment done over a longer period helps generate a compounding rate of returns.
In Lumpsum investment, one needs to invest only once. Whereas in SIP (Systematic Investment Plan), one invests a fixed amount periodically.
In the Lumpsum investment style, the market condition plays a huge role. If the market makes a major correction after your investment, it might take a few years to reach your original investment amount.
On the other hand, in SIP or systematic investment style, one need not worry about timing the market as investment is made during both ups and downs. Therefore, the return generated is a weighted average return.
For Lumpsum investment, one can choose various instruments like: