Lumpsum

Lumpsum Amount: ₹

Investments in Mutual Funds can be broadly classified into two types- lumpsum and SIP. A lumpsum investment is when the depositor invests a significant sum of money on a particular mutual fund scheme. SIP or Systematic Investment Plan, on the other hand, entails the investment of smaller amounts on a monthly basis.

How to calculate Lumpsum?

The Lumpsum formula to calculate the investments is represented by:

FV = P + (P * r * t)

Where:

  • FV- Future Value
  • p- Principal amount (initial investment)
  • r- Interest rate (expressed as a decimal)
  • t- Time period (in years)