Mutual Funds: Introduction
Mutual funds comprises resources pooled by numerous investors, which are invested in various financial instruments to generate quality returns. These financial instruments include equities, debt, derivatives, and other capital market securities. There are numerous Asset Management Companies in India that offer investors a myriad of mutual fund schemes to choose from, and earn high returns.
The returns generated from the mutual fund investment are distributed proportionally among the investors. A professional and competent manager who has a sound knowledge of the financial market manages the fund, thus bridging the gap of layman’s knowledge of the financial world and that of an expert.
Investors who have little to no knowledge of the financial market can take advantage of the expertise of the fund manager and earn higher returns on their investment. For an investor, an MF offers an opportunity to invest in a diversified portfolio of stocks, bonds and various other market securities.
What is Lumpsum Investment for Mutual Funds?
Lumpsum investment refers to one-time investment than an individual makes in a mutual fund scheme. Investors with a large sum of disposable income in hand, coupled with a good risk appetite, go for lump sum investment.
What is Lumpsum Calculator?
Lumpsum calculator tells us the maturity amount of present-day investment, given the number of years for which the investment has been made. It takes into consideration an expected rate of return at which the investment will grow over the years.
With Paisabazaar’s Lumpsum Calculator, it is a child’s play to calculate the final amount you will receive at maturity after investing a corpus in a mutual fund. You just need to enter the one-time investment amount, number of years for which the amount remains invested and the expected rate of return. This will give you the final maturity amount.
Also, you can key in the final amount you want to generate, with your investment horizon and expected rate of return to know the value of present-day investment. This comes in handy when you’re making a financial plan for your retirement, children’s education, etc.