Can I use the Lumpsum Calculator for short-term financial goals?

Yes, you can use the Lumpsum Calculator for short-term financial goals. Here are some tips for using the Lumpsum Calculator effectively for short-term goals:

• Input the exact time period in years till your goal needs to be achieved rather than using longer periods like retirement.
• For short-term goals, use conservative expected returns in line with debt/liquid funds instead of equity fund returns.
• Ensure the goal amount needed is accurately entered based on today's prices. To be safe, account for some inflation.
• For goals less than 3 years away, do not expect the investment to beat inflation substantially. Focus on principal protection.
• For goals 3-5 years away, balanced funds could be considered instead of pure equity. Moderate returns of 7-9% could be assumed.
• Review the risk involved before investing a lump sum in very short goals, such as less than one year. Safer options, like liquid funds, are more suitable.
• Re-evaluate regularly as the goal approaches to assess performance and ensure sufficient corpus. Top-up investment if required.