Lump Sum Calculator provides you the power to determine amount at end of year that will be equivalent to your lump sum investment in terms of future value when inflation is taken into effect. The lump sum calculator assists investors to determine the future value of lump sum investment over certain timeframe after inflation is taken into effect on purchasing power.
The investor in an SWP specifies at inception the amount he or she wants to be withdrawn from the mutual fund (monthly, quarterly, semi-annually or annually), and what portion – either capital gains (the appreciation) or principal is to be paid out. The remaining balance is re-invested in the mutual fund. That re-investment will grow, should the market rise.