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Power of Rs 19,00,000 One-time Investment in Mutual Fund: In how much time can your lump sum investment generate Rs 3,23,00,122 corpus?
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
Power of Rs 19,00,000 One-time Investment in Mutual Funds: Mutual funds are an asset class that invests money in various assets like stocks, equities and bonds on behalf of investors. When it comes to investing money for future needs, some people prefer to invest a lump sum, while others prefer to invest on a monthly basis. For such individuals, strategic investing in mutual funds can be beneficial.
There are several benefits of investing in mutual funds, which include the following:
- Compounding benefits
- Diversification
- Rupee cost averaging
- Liquidity
Compound interest is the interest you earn on interest. The power of compounding creates a snowball effect that helps your investments grow exponentially over time. In this write-up, we will try to explain how your investments can grow significantly when you stay invested for the long term.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
1/7
Power of Rs 19,00,000 One-time Investment in Mutual Funds
1/7Let's assume you're investing a lump sum of Rs 19,00,000 in mutual funds and want to build a corpus of over Rs 3.23 crore. Now, can you estimate how long it will take? Let's do the math and find out:
2/7
One-time Investment in Mutual Funds: Assuming a 12% annualised return
2/7For all the calculations, we are assuming a 12 per cent annualised return rate.
3/7
How many years will it take to create a Rs 3.23 crore corpus?
3/7As per calculations, to create a corpus of over Rs 3.23 crore with a lump sum investment of Rs 19,00,000, you need to invest in mutual funds for at least 25 years.
4/7
Calculating average capital gain
4/7Over 25 years, you can expect to receive a total capital gain of Rs 3,04,00,122 on an average.
5/7
Actual amount may vary
5/7However, it should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.
6/7
What will Rs 19 lakh become in 25 years in mutual fund?
6/7Consequently, at the end of 25 years, including the principal investment and capital gain, you will get a total of Rs 3,23,00,122.
7/7
Full Calculation Summary
7/7Total Investment Amount: Rs 19,00,000
Capital Gains: Rs 3,04,00,122
Total Approx. Return: Rs 3,23,00,122
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