Mutual fund investments are a popular mode of investments through which you may achieve your long and short-term goals. While planning for your goals, you would need to determine the monetary value for realizing your goals which are going to occur in future. For example, you may need to find out how much you need to save for your child’s education, or how much your invested amount will grow in say, ‘X’ years, etc. For this purpose, we have several calculators available online like an SIP calculator, Systematic Withdrawal Plan calculator, or a Lumpsum calculator etc. Some investors search for Lump Sum SIP calculator, which is a contradictory concept as you will understand in this article. Let us look at some of the calculators available online to investors in India.
Types of online calculators
- SIP Calculator: The SIP calculator or a Systematic Investment Plan Calculator is an online tool that is available in two versions. It can either calculate how much your SIP investments will grow to in the number of years specified by you. Or it may calculate the amount of SIP you will need to invest per period to grow a target amount. SIP is a systematic way of investing an amount of money in a mutual fund. The main feature of this type of investment is that you invest small amounts at regular intervals. This is opposed to a lumpsum investment where a sum of money is invested for once. Therefore, a Lump sum SIP calculator is not what you search for on a search engine. You either search for a SIP calculator or a Lumpsum calculator.
- Lumpsum Calculator: As mentioned earlier, a lumpsum is an amount of money that you invest in a mutual fund in one go and let it earn returns. A lumpsum calculator will tell you how much your money will be worth after a specified period with a specified rate of expected return. You may think that if you invest a lumpsum amount at irregular intervals as and when you get some windfalls, you may be able to find out the future value of your investments using a Lump Sum SIP calculator, as repeated lumpsum investments may work like an SIP. Nothing could be further from the truth. For each lumpsum amount that you invest you should do a separate calculation on a Lumpsum Calculator.
- Systematic Withdrawal Plan Calculator: This calculator helps you plan your systematic withdrawals from a pre-existing mutual fund where you already have some money accumulated. With the help of this calculator, you can find out the amount you can withdraw from your SWP account without depleting the funds in it. Or you may want to find out how much you can withdraw each month if your SWP is earning an expected rate of return. This calculator can help you to plan your regular income needs without any hitches.
- Retirement Calculator: This calculator helps you to calculate the corpus you would need at the time of your retirement for living a financially independent life. In fact, you can use this calculator in conjunction with your SIP calculator to find out how much you need to invest to arrive at the target corpus, and then use the Systematic Withdrawal Plan Calculator to plan the regular income you can withdraw from your retirement corpus once you reach that phase of your life.
Search for an online free calculator as per your needs and get your investments on track in consultation with a financial planner or mutual fund distributor.
