Mutual fund investmenthappens to be one of the most effectivemethods to convert your hard-earned savings to investments. We all want to grow our wealth, don’t we? We all want to live a financially secure life in the future, which would allow us to draw benefits while we are no longer working. But, to reap these benefits, one must start investing in mutual fundsfrom an early age, be patient throughout the investment period and if required, take the help from a financial advisor or mutual fund distributor to reach the different life goals. It is an easy process if one follows it diligently and does not lose hope in between or within a short period, if the money does not grow immediately due to flat markets or market volatility. The idea is to give the investments time to grow and benefit from the power of compounding.
There are online financial tools at the investor’s disposal to guide them throughout the process of mutual fund investing such as lumpsum calculator or retirement calculator. New investors often get confused and search for lumpsum SIP calculator but there is no such tool available. Lumpsum and SIP are two ways of making mutual fund investments, but both are starkly different from each other, based on the investors’ needs.
Lumpsum calculator makes an estimate on how much your lumpsum,or one-time investment corpus could be after a certain period. Here is how this tool can help you:-
1. It saves investors from the hassle of manual calculation, thus eliminating the possibility of human errors.
2. It helps you plan finances more efficiently as you seem to get an idea on how much to expect from lumpsum investments after the investment tenure.
3. The tool asks for simple detailslike the one-time amount you wish to invest, investment time period and assumed rate of return. Once the same is provided, the lumpsum calculator gives an estimated maturity value in seconds to the investor.
4. It provides investors with a fairly accurate estimate. It is not possible to give the exact numbers here as mutual fund investments are subject to market risks. But, the tool helps to understand an estimated figure that helps investors to plan ahead.
So, as stated above, lumpsum calculator is a handy and useful tool for investors to navigate their journey when it comes to investing in mutual fund schemes. Another important goal to achieve when one is chalking out their financial plan is retirement planning. A retirement calculator can tell you how much to save from today, to reach your desired retirement corpus when you plan to retire.Suppose you wish to accumulate a corpus of Rs 50 lakhs after 30 years, with Rs. 1 lakh as your current savings and you expect the average inflation to be 5% and the assumed returns as 12% p.a. Once you input these data in the retirement calculator, it would show you the monthly SIP investment amount as Rs 5,739. When invested for a long period of time with the right financial advice and patience, one can surely achieve their desired retirement corpus.
Sound financial planning forms the backbone of a strong portfolio and when pursued with discipline and patience, it can help one reach their future financial goals easily. Investors should use lumpsum calculator before making a one-time investment and retirement calculator when planning for retirement investments through mutual funds.