Pune Airport1 hr ago
Rs 13 Lakh Lump Sum Investment in Mutual Funds: How many years will it take to create a Rs 1 crore, Rs 2 crore & Rs 3 crore corpus?
- Written by Priya Vishwakarma
Published: Zee Business| Updated: Zee Business
Power of One-time Investment in Mutual Funds: A mutual fund is an asset class that parks funds in various assets like stocks, equity, and bonds on behalf of investors. There are two ways to invest money in MF — SIP and Lumpsum. In a SIP or Systematic Investment Plan, an investor can invest a fixed amount at regular intervals, usually on a monthly, quarterly, or yearly basis, depending on his/her financial capacity. Whereas a mutual fund lump-sum investment allows investors to invest once for a long period and build substantial wealth.
Wondering how? With the help of compounding.
Compounding is a process in which you can earn capital gains not only on the principal amount but also on the capital gains earned earlier. It creates a snowball effect that helps your investments grow exponentially over time.
In this write-up, we will go through the calculations to explain how many years you need to invest in mutual funds to create a retirement corpus of Rs 1 crore, Rs 2 crore, and Rs 3 crore -
Photos Credit: Pixabay/Canva
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
1/8
Time plays a vital role
1/8Timing is very important to make a large corpus in mutual funds. The longer you invest, the more profits you will earn in the long run.
2/8
Lumpsum vs SIP for long-term wealth creation: Assuming a 13% annualised return
2/8For these calculations, we are assuming a 13 per cent annualised return rate. However, it should be noted that the returns mentioned below are expected, and the actual amount may vary depending on market conditions.
3/8
Rs 13 lakh lump sum investment in MF: How many years will it take to create a Rs 1 crore corpus?
3/8According to the calculations, you would have to invest in mutual funds for at least 17 years to create a corpus of Rs 1 crore with a lump sum investment of Rs 13 lakh. Over these years, you can expect a total of Rs 90,81,901 (on average) as capital gains.
4/8
How to make 1 crore from mutual funds: Calculations
4/8Total Investment Amount: Rs 13,00,000 Capital Gains: Rs 90,81,901 (expected) Total Approx. Return: Rs 1,03,81,901
5/8
Rs 13 lakh lump sum investment in MF: How many years will it take to create a Rs 2 crore corpus?
5/8To create a retirement corpus of Rs 2 crore with a Rs 13 lakh lump sum investment, you need to invest for at least 23 years in mutual funds. In these years, you can expect a total of Rs 2,03,14,617 as capital gains.
6/8
Investment plan for Rs 2 crore retirement corpus: Calculations
6/8Total Investment Amount: Rs 13,00,000 Capital Gains: Rs 2,03,14,617 (expected) Total Approx. Return: Rs 2,16,14,617
7/8
Rs 13 lakh lumpsum to Rs 3 crore mutual fund investment plan: How many years will it take?
7/8To create a retirement fund of Rs 3 crore from a lump sum investment of Rs 13 lakh, you would have to invest in mutual funds for at least 26 years. In this case, you can expect a capital gain of Rs 2,98,87,667.
8/8
Rs 13 lakh lumpsum investment calculator: How to build Rs 3 crore retirement corpus
8/8Total Investment Amount: Rs 13,00,000 Capital Gains: Rs 2,98,87,667 (expected) Total Approx. Return: Rs 3,11,87,667
- 1
- 2
- 3
- 4
- 5
- 6