Here’s How You Can Use A Lump Sum SIP Calculator To Easily Plan & Manage Your Investments
A Systematic Investment Plan (SIP) is a mutual funds investment which is made at regular intervals. A person can make a SIP investment in mutual funds by paying the amount through weekly, monthly or quarterly installments. A lump sum SIP calculator can be used to calculate future returns on investments. It is a tool that helps an investor to plan his/her investments and get an estimated idea of future returns. A lump sum sip calculator is easily available online and is easy to use as well. You can use a free lump sum sip calculator and estimate the future earnings from your investment.
A lump sum sip calculator is an easy to use tool which helps you to estimate the future earnings from a mutual funds investment.
What Is A lump sum SIP Calculator?
A lump sum SIP calculator is a tool that is designed to calculate the future returns on one’s investments. It simply does the math for you and calculates the estimated earnings from your investments. With an estimated amount in hand, one can easily plan his investments. A lump sum sip calculator helps an investor to do all time taking calculations in a few minutes and through a few simple steps. In a matter of moments, you can evaluate all the possible investment options that are suitable for you.
How Is It Used?
One can use a lump sum SIP calculator that is available online. All you need to do is follow the simple steps given below:
- Open a lump sum sip calculator which is available online.
- Enter the amount that you are willing to invest.
- Enter the period of time of your desired investment(in years).
- Next, enter the amount of return that you are expecting(in percentage).
- Click submit to view results.
As soon as you click submit, results will be displayed on your screen. You will see the total amount of money that you are investing, the estimated amount of returns on your investment and the total expected maturity value of your investment.
For example, suppose that you choose a SIP mutual funds scheme where you invest INR 15,000 every month for a period of 5 years. If the expected interest rate is said to be 15% p.a then, your returns would be:
Total investment : 9,00,000
Wealth gained: 4,45,225
Maturity value: 13,45,225
How Does It Help To Plan Investments?
A lump sum sip calculator helps you to calculate the expected returns on your investment so that an investor gets a rough idea of how his wealth would increase if he invests his money in a certain SIP mutual funds. It does the painful task of manual calculation in a few easy steps! A lump sum sip calculator can help an individual to plan & manage his investments in the following ways:
- It is easy to use and a time-saving tool that gives you the estimated returns on your investment within a few minutes. Any individual who does not have the time and patience to do all the necessary calculations manually, can use this calculator and get the desired results.
- A free lump sum sip calculator can be used as many times as you want to use it. This allows an investor to quickly evaluate all the available SIP schemes and options that are available in the money market and then pick the right one for him/her. All one needs to do is change the variable and click submit. You may also note down the displayed results serially, and then make the comparison to select the best plan.
- If one has already invested in a SIP mutual funds but has no proper information of the returns, he can easily use a lump sum SIP calculator to get an estimated idea of how much wealth he has earned hitherto and may earn in the future. This is how one can manage his existing investments with ease.
- If an investor is willing to expand his/her investment tenure, he can use a lump sum SIP calculator to calculate the extra wealth that would come if the investment is extended by a certain amount. This would help an investor to manage and decide whether increasing the investment tenure would make him gain a good fortune or not.
The proper utilisation of a lump sum SIP calculator can help an investor to calculate and manage his investment plans in a few minutes of time. Any person who is interested to step in the mutual funds market can use it and make an estimation of the probable future earnings. There are various lump sum and SIP investment options in mutual funds and selecting a profitable plan can be a hectic task. With the use of a lump sum SIP calculator, an investor can make most of his savings either weekly, monthly or quarterly choosing the most suitable plan as per his investment ability and risk appetite.