How does a lumpsum calculator help people?

Apart from the regular earning, people want to invest in something that can provide great returns in the future. This is the reason, there is a rise in the awareness of many of the investment options out of which Mutual fund investments is the most popular one. Nowadays this investment has been divided into two broad terms i.e. SIP (Systematic Investment Plan) and Lumpsum Investments. Though the concept of SIP is quite common among the people Lumpsum investment is not. The investors that are interested in lump sum investment schemes take the help of a calculator that makes the transaction very clear.

Lumpsum calculator that helps in calculating returns of the investor. With taking help of this calculator, the person just needs to fill in all the necessary details that will help in further estimating the amount that the person will get at the maturity date. This is how the investors will have the proper idea about the exact amount that they will get after some time if they invest now in a specific scheme. Here is the list of benefits of using the lumpsum calculator. Let’s have a look at them.

• It will provide the estimated amount, the person will get after the fixed investment period. The expected return may vary according to the tenure that can be either 1-years, 3 years, etc. it will prepare an approximation on the amount.
• The calculator will provide detailed information that will help the investor to plan their finances in such a way that they get the best returns at the time of maturity.
• The use of this calculator will save a lot of time that was earlier used to manually calculate different things and also prevents human errors.
• It is very simple and convenient to use this calculator. Once all the information is entered into the system, it will provide the most reliable results within few seconds.

The lumpsum calculator uses the following formula to estimate the following returns. Let’s have a look at them.

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

Here, A is the estimated returns, P is the present value of the investment, r is the estimated rate of return, t is the tenure of the investment and n is the number of compound interest in a year.

Though very few people are aware of this option of investment that provides many of the benefits which are listed below:

• Investing a significant amount: This is the method that can help in investing a significant amount in the mutual fund scheme. Once the investment is done, the money will start to show growth.
• Ideal for long-term investment: If any of the people are highly interested in the long-term investment, the lumpsum investment will be a great investment opportunity. The longer the tenure of the investments, the person will receive high returns on investment.

The person can easily start investing with the smaller amount in the market and gradually increase with time. For more guidance on this topic, the person needs to have this, 5paisa can play the most important role. It is one of the leading platforms that helps its clients in doing different types of investments.