Frequently Asked Questions – Lumpsum Calculator
What is a Lumpsum Investment?
A lumpsum investment is a one-time, single large investment made in a mutual fund or any financial instrument, as opposed to regular monthly SIP investments. It is ideal when you have a large sum ready to invest.
How is Lumpsum return calculated?
Lumpsum return is calculated using the compound interest formula: M = P × (1 + r)^n, where M = Maturity Value, P = Principal (Investment Amount), r = Annual Rate of Return, n = Number of Years.
SIP vs Lumpsum – which is better?
Both have advantages. SIP is ideal for regular income earners as it averages out market volatility. Lumpsum is better when markets are low or when you have a large idle amount. Our financial advisors at B-Wealth can help you choose the right strategy.