SBI Lumpsum Calculator

SBI Lumpsum Calculator

There are two ways of investing in mutual funds — by making a lumpsum payment and through a Systematic Investment Plan (SIP). While SIPs involve investing small amounts regularly, lumpsum investments mean investing a large sum of money all at once. Though each method has its own set of advantages, many investors go for lumpsum investments for their straightforward nature and the potential for substantial returns, largely in part because of fewer variables affecting the outcome. To gauge the potential returns on a lumpsum investment, you can use an online mutual fund lumpsum calculator.

What is the SBI Lumpsum Calculator?

The SBI lumpsum calculator is an online tool to estimate the potential returns on a lumpsum, or one-time, mutual fund investment. The calculator helps investors estimate the future value of their investment by entering three parameters — the investment amount, expected rate of return and the tenure. By using these parameters, the SBI lump sum calculator provides an estimated return value, giving investors an idea of the potential growth of their investment over time.

How to use the SBI Lumpsum Calculator to estimate your mutual fund returns?

• Begin by entering the amount you plan to invest as a lumpsum.
• Choose the SBI mutual fund scheme where you wish to invest from the ‘Select Scheme’ option in the calculator.
• Specify the investment period, or the tenure.
• The calculator will instantly display the estimated total returns and wealth gained.

SBI Lumpsum Calculator formula

The lumpsum calculator estimates the return using a compound interest formula. This formula accounts for the number of times interest is compounded annually. The formula is — P (1 + r/n) ^ nt

Here:

• P represents the initial investment
• r is the rate of return, or the annual interest rate
• t is the duration of investment
• n stands for the number of times the interest is compounded in a year

For example, if you invest a total of Rs 1 lakh in a mutual fund with a 10% annual return, compounded every 6 months for five years, the numbers would be as follows:

• Invested amount: Rs 1,00,000
• Expected amount: Rs 1,61,051
• Wealth gained: Rs 61,051

What are the benefits of using the SBI Lumpsum Calculator?

• Estimates accurate returns: To assist you in making wise selections, the calculator estimates possible returns accurately depending on your investment amount, tenure and expected rate of return.
• Time-saving: The SBI Lumpsum Calculator saves you time and effort by providing fast results in place of manually calculating the returns.
• Scenario analysis: To evaluate how various scenarios affect your returns, you can easily change the investment amount, tenure and rate of return and compare different scenarios.
• Risk assessment: The calculator allows you to gauge the returns on your investment, enabling you to choose the right strategy that aligns with your investment objectives.