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Benefits of Lump Sum Investing in Mutual Funds

Updated on July 22, 2024 , 12494 views

Lump sum investment refers to Investing a considerable amount in a Mutual Fund scheme. In lump sum investing, the money is deposited as a one-time down payment. Individuals who are having a large amount can deposit a significant proportion in Mutual Fund. Lump sum mode of investing is opposite to Systematic Investment plan or SIP mode. One can invest lump sum amount either in fixed Income or Equity Funds depending on their risk-appetite, investment tenure, and investment objective. Though most of the individuals prefer investing in Mutual Funds via SIP yet, there are some advantages of lump sum investing. So, let us understand the benefits of lump sum investing in Mutual Funds.

Benefits of Lump Sum Investing

Some of the benefits of lump sum investing in Mutual Funds are as follows:

Investment of Big Amount

By option for lump sum mode, individuals can invest a considerable amount in Mutual Funds. As a consequence, when the Market shows a growth period, then the investment value also increases to a large extent as compared to the value of SIP investment.

Ideal for Long-term Tenure

Lump sum investment is suitable for individuals who prefer to invest through long-term. Long-term investment in case of lump sum investment can be considered for an approximate investment tenure of 10 years or more. However, for lump sum investment in Debt fund, individuals can also choose to invest for a medium-term tenure.

Convenience

Lump sum mode is generally convenient for individuals as people who are having a large amount can spread their investments. However, if the investment is done through SIP mode then they have to be careful that the amount is invested at regular intervals.

Invest for the Timing

Whenever investors choose for a long-term investment, they should always look for the market timing. Individuals generally should choose to invest when the markets are already in a slump and is showing growth potentials. In this situation, individuals can earn higher returns through lump sum mode than in comparison to SIP mode. However, if the lump sum investment is done when the markets have already reached a peak, in that case, individuals might end up with a loss.

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Best Performing Lump Sum Funds for 2024

Since the lump sum investment is done for a long-term tenure, as a consequence, we can choose to invest in equity category specially in Large cap funds. So, let us look at some of the best performing large-cap Mutual Fund schemes that can be chosen for long-term investment through lump sum mode.

Fund	NAV	Net Assets (Cr)	Min Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2023 (%)
Nippon India Large Cap Fund Growth	₹87.4928 ↑ 0.19	₹29,534	5,000	10	21.2	36.6	24.9	20.7	32.1
JM Core 11 Fund Growth	₹20.2621 ↑ 0.29	₹132	5,000	10.9	20.1	47.3	24	19.3	32.9
IDBI India Top 100 Equity Fund Growth	₹44.16 ↑ 0.05	₹655	5,000	9.2	12.5	15.4	21.9	12.6
JM Large Cap Fund Growth	₹162.702 ↑ 0.22	₹234	5,000	11.8	20.1	45.1	21.9	19.9	29.6
ICICI Prudential Bluechip Fund Growth	₹105.73 ↑ 0.28	₹59,364	5,000	9.7	18.2	37	21.5	20.5	27.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jul 24

*Above is list of best Lump Sum funds having AUM/Net Assets above 100 Crore. Sorted on Last 3 Year Return.

1. Nippon India Large Cap Fund

(Erstwhile Reliance Top 200 Fund)

The primary investment objective of the scheme is to seek to generate long term capital appreciation by investing in equity and equity related instruments of companies whose market capitalization is within the range of highest & lowest market capitalization of S&P BSE 200 Index. The secondary objective is to generate consistent returns by investing in debt and money market securities.

Nippon India Large Cap Fund is a Equity - Large Cap fund was launched on 8 Aug 07. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 13.6% since its launch. Ranked 20 in Large Cap category. Return for 2023 was 32.1% , 2022 was 11.3% and 2021 was 32.4% .

Below is the key information for Nippon India Large Cap Fund

Nippon India Large Cap Fund Growth
Launch Date	8 Aug 07
NAV (24 Jul 24)	₹87.4928 ↑ 0.19 (0.22 %)
Net Assets (Cr)	₹29,534 on 30 Jun 24
Category	Equity - Large Cap
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.86
Sharpe Ratio	2.55
Information Ratio	2.15
Alpha Ratio	8.02
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 19	₹10,000
30 Jun 20	₹7,754
30 Jun 21	₹12,311
30 Jun 22	₹13,023
30 Jun 23	₹17,169
30 Jun 24	₹23,925

Nippon India Large Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹505,644.
Net Profit of ₹205,644 Invest Now

Returns for Nippon India Large Cap Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24

Duration	Returns
1 Month	3.1%
3 Month	10%
6 Month	21.2%
1 Year	36.6%
3 Year	24.9%
5 Year	20.7%
10 Year
15 Year
Since launch	13.6%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	32.1%
2022	11.3%
2021	32.4%
2020	4.9%
2019	7.3%
2018	-0.2%
2017	38.4%
2016	2.2%
2015	1.1%
2014	54.6%

Fund Manager information for Nippon India Large Cap Fund

Name	Since	Tenure
Sailesh Raj Bhan	8 Aug 07	16.91 Yr.
Ashutosh Bhargava	1 Sep 21	2.83 Yr.
Kinjal Desai	25 May 18	6.11 Yr.

Data below for Nippon India Large Cap Fund as on 30 Jun 24

Equity Sector Allocation

Sector	Value
Financial Services	35.68%
Consumer Cyclical	12.5%
Industrials	10.13%
Consumer Defensive	9.2%
Energy	8.54%
Technology	7.1%
Utility	5.96%
Basic Materials	4.39%
Health Care	3.31%
Communication Services	1.78%

Asset Allocation

Asset Class	Value
Cash	1.4%
Equity	98.6%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Dec 08 \| HDFCBANK	10%	₹2,896 Cr	17,200,529 ↑ 200,000
Reliance Industries Ltd (Energy) Equity, Since 31 Aug 19 \| RELIANCE	8%	₹2,285 Cr	7,300,000
ITC Ltd (Consumer Defensive) Equity, Since 31 Jan 16 \| ITC	5%	₹1,604 Cr	37,750,240 ↑ 1,000,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 09 \| ICICIBANK	5%	₹1,523 Cr	12,700,000 ↓ -2,000,000
State Bank of India (Financial Services) Equity, Since 31 Oct 10 \| SBIN	5%	₹1,443 Cr	17,000,644 ↓ -1,500,000
Axis Bank Ltd (Financial Services) Equity, Since 31 Mar 15 \| AXISBANK	4%	₹1,265 Cr	10,000,080
Infosys Ltd (Technology) Equity, Since 30 Sep 07 \| INFY	4%	₹1,253 Cr	8,000,084 ↑ 1,000,000
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Sep 07 \| LT	3%	₹958 Cr	2,700,529
Tata Power Co Ltd (Utilities) Equity, Since 30 Jun 23 \| TATAPOWER	3%	₹947 Cr	21,500,000 ↑ 2,500,000
Bajaj Finance Ltd (Financial Services) Equity, Since 31 Dec 21 \| BAJFINANCE	3%	₹847 Cr	1,190,326 ↑ 50,000

2. JM Core 11 Fund

The investment objective of the Scheme is to provide long-term growth by investing predominantly in a concentrated portfolio of equity / equity related instruments of companies.

JM Core 11 Fund is a Equity - Large Cap fund was launched on 5 Mar 08. It is a fund with High risk and has given a CAGR/Annualized return of 4.4% since its launch. Ranked 18 in Large Cap category. Return for 2023 was 32.9% , 2022 was 7.1% and 2021 was 16.3% .

Below is the key information for JM Core 11 Fund

JM Core 11 Fund Growth
Launch Date	5 Mar 08
NAV (24 Jul 24)	₹20.2621 ↑ 0.29 (1.47 %)
Net Assets (Cr)	₹132 on 30 Jun 24
Category	Equity - Large Cap
AMC	JM Financial Asset Management Limited
Rating	☆☆☆☆
Risk	High
Expense Ratio	2.48
Sharpe Ratio	2.78
Information Ratio	0.68
Alpha Ratio	10.26
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-60 Days (1%),60 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 19	₹10,000
30 Jun 20	₹8,279
30 Jun 21	₹11,462
30 Jun 22	₹11,418
30 Jun 23	₹14,835
30 Jun 24	₹21,784

JM Core 11 Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520 Invest Now

Returns for JM Core 11 Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24

Duration	Returns
1 Month	2.4%
3 Month	10.9%
6 Month	20.1%
1 Year	47.3%
3 Year	24%
5 Year	19.3%
10 Year
15 Year
Since launch	4.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	32.9%
2022	7.1%
2021	16.3%
2020	6.3%
2019	10.6%
2018	-5%
2017	43.1%
2016	11.1%
2015	-2.4%
2014	51.3%

Fund Manager information for JM Core 11 Fund

Name	Since	Tenure
Asit Bhandarkar	25 Feb 09	15.36 Yr.
Gurvinder Wasan	1 Dec 22	1.58 Yr.
Chaitanya Choksi	18 Jul 14	9.96 Yr.

Data below for JM Core 11 Fund as on 30 Jun 24

Equity Sector Allocation

Sector	Value
Consumer Cyclical	23.06%
Financial Services	20.19%
Industrials	18.65%
Basic Materials	16.32%
Technology	11.74%
Energy	6.37%
Health Care	2.45%

Asset Allocation

Asset Class	Value
Cash	1.22%
Equity	98.78%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Jun 24 \| HDFCBANK	7%	₹9 Cr	55,000 ↑ 55,000
Infosys Ltd (Technology) Equity, Since 28 Feb 21 \| INFY	5%	₹7 Cr	45,610 ↑ 20,000
JK Cement Ltd (Basic Materials) Equity, Since 30 Jun 24 \| JKCEMENT	4%	₹5 Cr	12,000 ↑ 12,000
Vedanta Ltd (Basic Materials) Equity, Since 30 Apr 24 \| 500295	4%	₹5 Cr	110,000 ↑ 10,000
JSW Infrastructure Ltd (Industrials) Equity, Since 31 May 24 \| 543994	4%	₹5 Cr	152,000
Jubilant Foodworks Ltd (Consumer Cyclical) Equity, Since 31 May 24 \| JUBLFOOD	4%	₹5 Cr	88,000 ↑ 6,000
Larsen & Toubro Ltd (Industrials) Equity, Since 31 Oct 11 \| LT	4%	₹5 Cr	13,500 ↑ 1,500
Trent Ltd (Consumer Cyclical) Equity, Since 30 Nov 22 \| TRENT	4%	₹5 Cr	8,609 ↑ 1,250
Tata Motors Ltd Class A (Consumer Cyclical) Equity, Since 31 Jul 23 \| TATAMTRDVR	4%	₹5 Cr	70,000 ↑ 13,000
Hitachi Energy India Ltd Ordinary Shares (Technology) Equity, Since 31 Mar 23 \| POWERINDIA	3%	₹5 Cr	3,550 ↓ -550

3. IDBI India Top 100 Equity Fund

The Investment objective of the Scheme is to provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related Instruments of Large Cap companies. However there can be no assurance that the investment objective under the Scheme will be realized.

IDBI India Top 100 Equity Fund is a Equity - Large Cap fund was launched on 15 May 12. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 14.2% since its launch. Ranked 45 in Large Cap category. .

Below is the key information for IDBI India Top 100 Equity Fund

IDBI India Top 100 Equity Fund Growth
Launch Date	15 May 12
NAV (28 Jul 23)	₹44.16 ↑ 0.05 (0.11 %)
Net Assets (Cr)	₹655 on 30 Jun 23
Category	Equity - Large Cap
AMC	IDBI Asset Management Limited
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	2.47
Sharpe Ratio	1.09
Information Ratio	0.14
Alpha Ratio	2.11
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 19	₹10,000
30 Jun 20	₹9,378
30 Jun 21	₹14,442
30 Jun 22	₹14,499
30 Jun 23	₹17,853

IDBI India Top 100 Equity Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹415,684.
Net Profit of ₹115,684 Invest Now

Returns for IDBI India Top 100 Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24

Duration	Returns
1 Month	3%
3 Month	9.2%
6 Month	12.5%
1 Year	15.4%
3 Year	21.9%
5 Year	12.6%
10 Year
15 Year
Since launch	14.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014

Fund Manager information for IDBI India Top 100 Equity Fund

Name	Since	Tenure

Data below for IDBI India Top 100 Equity Fund as on 30 Jun 23

Equity Sector Allocation

Sector	Value

Asset Allocation

Asset Class	Value

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity

4. JM Large Cap Fund

(Erstwhile JM Equity Fund)

The scheme seeks to provide optimum capital growth and appreciation.

JM Large Cap Fund is a Equity - Large Cap fund was launched on 1 Apr 95. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 10% since its launch. Ranked 73 in Large Cap category. Return for 2023 was 29.6% , 2022 was 3.4% and 2021 was 23.2% .

Below is the key information for JM Large Cap Fund

JM Large Cap Fund Growth
Launch Date	1 Apr 95
NAV (24 Jul 24)	₹162.702 ↑ 0.22 (0.14 %)
Net Assets (Cr)	₹234 on 30 Jun 24
Category	Equity - Large Cap
AMC	JM Financial Asset Management Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	2.51
Sharpe Ratio	2.79
Information Ratio	0.77
Alpha Ratio	12.34
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-60 Days (1%),60 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 19	₹10,000
30 Jun 20	₹9,822
30 Jun 21	₹13,187
30 Jun 22	₹13,289
30 Jun 23	₹16,422
30 Jun 24	₹23,909

JM Large Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520 Invest Now

Returns for JM Large Cap Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24

Duration	Returns
1 Month	3.4%
3 Month	11.8%
6 Month	20.1%
1 Year	45.1%
3 Year	21.9%
5 Year	19.9%
10 Year
15 Year
Since launch	10%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	29.6%
2022	3.4%
2021	23.2%
2020	18.1%
2019	4.9%
2018	0.8%
2017	20.9%
2016	1.8%
2015	-1.3%
2014	45.5%

Fund Manager information for JM Large Cap Fund

Name	Since	Tenure
Satish Ramanathan	20 Aug 21	2.87 Yr.
Asit Bhandarkar	5 Oct 17	6.74 Yr.
Gurvinder Wasan	1 Dec 22	1.58 Yr.

Data below for JM Large Cap Fund as on 30 Jun 24

Equity Sector Allocation

Sector	Value
Financial Services	22.13%
Basic Materials	17.28%
Industrials	12.16%
Technology	12.07%
Consumer Cyclical	11.95%
Utility	7.32%
Energy	6.6%
Communication Services	3.89%
Health Care	2.94%
Consumer Defensive	1.05%

Asset Allocation

Asset Class	Value
Cash	2.61%
Equity	97.39%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Sep 12 \| HDFCBANK	7%	₹16 Cr	97,172 ↑ 38,000
State Bank of India (Financial Services) Equity, Since 31 Oct 11 \| SBIN	5%	₹12 Cr	138,397 ↑ 41,000
Tata Consultancy Services Ltd (Technology) Equity, Since 31 Jan 24 \| TCS	5%	₹11 Cr	29,150 ↑ 23,400
Infosys Ltd (Technology) Equity, Since 30 Apr 15 \| INFY	5%	₹11 Cr	67,898 ↑ 39,000
Larsen & Toubro Ltd (Industrials) Equity, Since 31 Jul 08 \| LT	5%	₹11 Cr	29,807
Grasim Industries Ltd (Basic Materials) Equity, Since 31 Oct 23 \| GRASIM	4%	₹10 Cr	37,000
Reliance Industries Ltd (Energy) Equity, Since 31 Mar 24 \| RELIANCE	4%	₹9 Cr	27,500 ↑ 7,500
Axis Bank Ltd (Financial Services) Equity, Since 31 May 24 \| AXISBANK	4%	₹8 Cr	66,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Jan 11 \| ICICIBANK	3%	₹8 Cr	64,087
Ambuja Cements Ltd (Basic Materials) Equity, Since 31 Mar 24 \| AMBUJACEM	3%	₹7 Cr	110,000 ↑ 47,000

5. ICICI Prudential Bluechip Fund

(Erstwhile ICICI Prudential Focused Bluechip Equity Fund)

To generate long-term capital appreciation and income distribution to unit holders from a portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain and the balance in debt securities and money market instruments. The Fund Manager will always select stocks for investment from among Top 200 stocks in terms of market capitalization on the National Stock Exchange of India Ltd. If the total assets under management under this scheme goes above Rs. 1,000 crores the Fund Manager reserves the right to increase the number of companies to more than 20.

ICICI Prudential Bluechip Fund is a Equity - Large Cap fund was launched on 23 May 08. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15.7% since its launch. Ranked 21 in Large Cap category. Return for 2023 was 27.4% , 2022 was 6.9% and 2021 was 29.2% .

Below is the key information for ICICI Prudential Bluechip Fund

ICICI Prudential Bluechip Fund Growth
Launch Date	23 May 08
NAV (24 Jul 24)	₹105.73 ↑ 0.28 (0.27 %)
Net Assets (Cr)	₹59,364 on 30 Jun 24
Category	Equity - Large Cap
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.69
Sharpe Ratio	2.61
Information Ratio	1.08
Alpha Ratio	8.03
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 19	₹10,000
30 Jun 20	₹8,813
30 Jun 21	₹13,398
30 Jun 22	₹13,995
30 Jun 23	₹17,310
30 Jun 24	₹23,956

ICICI Prudential Bluechip Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹505,644.
Net Profit of ₹205,644 Invest Now

Returns for ICICI Prudential Bluechip Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jul 24

Duration	Returns
1 Month	4%
3 Month	9.7%
6 Month	18.2%
1 Year	37%
3 Year	21.5%
5 Year	20.5%
10 Year
15 Year
Since launch	15.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	27.4%
2022	6.9%
2021	29.2%
2020	13.5%
2019	9.8%
2018	-0.8%
2017	32.7%
2016	7.7%
2015	-0.2%
2014	41.1%

Fund Manager information for ICICI Prudential Bluechip Fund

Name	Since	Tenure
Anish Tawakley	5 Sep 18	5.82 Yr.
Vaibhav Dusad	18 Jan 21	3.45 Yr.
Sharmila D’mello	31 Jul 22	1.92 Yr.

Data below for ICICI Prudential Bluechip Fund as on 30 Jun 24

Equity Sector Allocation

Sector	Value
Financial Services	24.24%
Energy	11.77%
Consumer Cyclical	11.07%
Industrials	9.87%
Technology	7.65%
Basic Materials	7.15%
Consumer Defensive	5.55%
Health Care	5.49%
Communication Services	4.01%
Utility	3.26%
Real Estate	1.15%

Asset Allocation

Asset Class	Value
Cash	8.8%
Equity	91.2%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
ICICI Bank Ltd (Financial Services) Equity, Since 30 Jun 08 \| ICICIBANK	8%	₹4,861 Cr	40,518,440
Reliance Industries Ltd (Energy) Equity, Since 30 Jun 08 \| RELIANCE	8%	₹4,538 Cr	14,495,800 ↑ 100,000
Larsen & Toubro Ltd (Industrials) Equity, Since 31 Jan 12 \| LT	6%	₹3,648 Cr	10,281,834
HDFC Bank Ltd (Financial Services) Equity, Since 31 Dec 10 \| HDFCBANK	5%	₹3,215 Cr	19,092,421 ↑ 1,196,164
Axis Bank Ltd (Financial Services) Equity, Since 31 Mar 14 \| AXISBANK	5%	₹2,829 Cr	22,358,608
Maruti Suzuki India Ltd (Consumer Cyclical) Equity, Since 30 Apr 16 \| MARUTI	5%	₹2,683 Cr	2,229,726 ↑ 85,671
Infosys Ltd (Technology) Equity, Since 30 Nov 10 \| INFY	4%	₹2,604 Cr	16,620,748 ↓ -400,000
UltraTech Cement Ltd (Basic Materials) Equity, Since 30 Sep 17 \| ULTRACEMCO	4%	₹2,509 Cr	2,150,633
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Aug 09 \| BHARTIARTL	4%	₹2,324 Cr	16,091,238
Sun Pharmaceuticals Industries Ltd (Healthcare) Equity, Since 31 Jul 15 \| SUNPHARMA	3%	₹1,530 Cr	10,062,064 ↑ 500,581

Lump Sum Calculator

Lump sum calculator is an instrument that helps individuals to understand how much will be the value of their Lump Sum Investment in Mutual Funds at the end of the investment tenure. The input data that needs to be fed in the calculator include tenure of lump sum investment, amount of lump sum investment, expected the long-term growth rate in the equity markets, expected long-term Inflation rate. So, let us understand the concept of how to use a lump sum calculator.

Lump Sum Investment: INR 35,000

Investment Tenure: 20 Years

Long-term Growth Rate (Approx.): 15%

Long-term Inflation Rate (Approx.): 4%

Expected Returns as per Lump Sum Calculator: INR 2,82,181

Net Profit on the Investment: INR 2,47,181

Thus, the above calculation shows that the net profit on the investment on your investment is INR 2,47,181 while the total value of your investment is INR 2,82,181.

Thus, from the above pointers, it can be said that lump sum mode of investing also has its advantages. However, individuals should be cautious while choosing lump sum mode of investment. They should check whether such mode is suitable for them or not. If individuals are not very comfortable with lump sum mode, then they can choose for STP or Systematic Transfer Plan in which they first invest the lump sum amount in a Liquid Fund and then transfer it systematically to equity fund at regular intervals.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.