A guide on the lumpsum investment

by Lalithaa

If you are interested in investing in a lumpsum mutual fund, a lumpsum calculator will be of great help to calculate the exact returns. The calculator will help you to calculate the amount earned from the lumpsum investment made. Usually, an investment can be made in two ways- SIP and lumpsum. When an investor makes a specific amount of money on a particular mutual fund scheme, that is called lumpsum investment.

A lumpsum calculator will help you to calculate the estimated return on the wholesome investment done. With the help of this calculator, you can easily calculate returns of 1 year, 3 years and 5 years. We all have heard about SIP and many of us get confused about both. The only difference is that the lumpsum is a single complete amount of money whereas the SIP is constantly investing a particular amount after regular intervals. If investing in mutual funds in lumpsum, the minimum lumpsum will start from Rs. 1,000 to Rs. 10,000. Also, the amount can be easily withdrawn with the help of a redemption request. A lumpsum calculator is a great tool that will help you to calculate the estimated returns on the whole investment for the whole period. With the help of this calculator, one can easily make his/her mind whether to invest or not.

Following are some of the questions clearly explaining lumpsum investment:

  • Meaning- It is a type of investment done in mutual funds in which you have to pay the whole amount in a single go. You can only invest in single mutual fund investment.
  • Lumpsum calculator- To know the expected returns, you can take the help of this tool. This will help you to know the returns you can expect depending upon the investments made by you.
  • Documents- Lumpsum investment requires some of the paperwork which includes an application form, proof of identity, proof of address, KYC compliance, a cheque for the lumpsum amount and intervention of any third party, in case of any minor.
  • Market risk- The lumpsum investment are prone to market risk, so make sure to read all the terms and conditions of the scheme before investing.
  • Eligibility- All you need to have is a Demat account with KYC compliance. Plus, one should be willing to go for the lumpsum investment.
  • Types of return- The lumpsum investment includes various types of return like absolute return, total return, annualized return, point to point return, rolling return and trailing return.
  • Maximum amount- There is as such no maximum amount i.e. there is no limit to invest in the lumpsum investment.

So above are all the main points covering lumpsum investment. Make good use of the lumpsum calculator to know the expected return. You can use the ‘5paisa’ lumpsum calculator by entering the amount you wish to invest, time period and tell how much return to expect depending upon the scheme and rest leave on the lumpsum calculator. For any queries, you can contact ‘5paisa’ by visiting their website or emailing them.



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