PocketLumpsum Calculator
Check the growth of your one-time mutual fund investments. Simply input your lumpsum amount, tenure, and expected returns to estimate your maturity value.
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Lumpsum Compound Growth Projections
Lumpsum Compound Growth Formula
Lumpsum mutual fund growth is calculated using the standard future value compound interest formula:
FV = PV × (1 + r)t
Where PV is present lumpsum value, r is annual expected return rate, and t is tenure in years.
Worked Example
If you invest a lumpsum amount of ₹1,00,000 for 10 years at an expected return of 12% p.a.:
- Principal Invested: ₹1,00,000
- Interest / Return Rate: 12%
- Tenure: 10 years
- Estimated Maturity Value: ₹3,10,585
- Wealth Gained: ₹2,10,585
Frequently Asked Questions
What is a lumpsum investment?
A lumpsum investment is a one-time deposit of a lump sum of money into a financial scheme or mutual fund, rather than spreading payments over time (which is a SIP).
How is lumpsum return calculated?
Returns are computed using CAGR compound interest. The rate of return is compounded annually over the tenure of the investment.
Is lumpsum mutual fund return taxable?
Yes. Equity fund gains held for over 1 year are Long Term Capital Gains (LTCG), taxed at 12.5% beyond ₹1.25 Lakh exemption. Debt fund gains are taxed at your normal tax slab rate.
What is a safe expected return rate for equity funds?
For long term equity investments (above 7-10 years) in India, an expected return rate of 12% to 15% is commonly used for projections, although returns are market-linked and not guaranteed.
Can I switch from lumpsum to SIP?
Yes, you can do this using a Systematic Transfer Plan (STP) where you deposit a lumpsum in a liquid debt fund and transfer fixed monthly amounts to equity funds.