NEET UG 20261 hr ago
Power of Rs 55,55,555 One-time Investment in Mutual Fund: In how much time your lump sum investment can generate over Rs 5,00,00,000 and Rs 50,00,00,000 corpus?
- Written by Priya Vishwakarma
Published: Zee Business| Updated: Zee Business
Power of Rs 55,55,555 One-time Investment in Mutual Funds: If you are planning to buy a car, house, or accumulate money for your retirement, you may consider mutual fund investments. They are an asset class that invests money in various assets like stocks, equities and bonds on behalf of investors. There are two types of investments in mutual funds: one-time investment/lump sum investment and monthly investment.
There are many advantages of investing in mutual funds, such as compounding benefits, diversification, rupee cost averaging, liquidity and many more. In this write-up, we will try to explain how your one-time investment in a mutual fund 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.)
1/10
One-time investment in a mutual fund
1/10Suppose you are making a lump-sum investment of Rs 55,55,555 in mutual funds, and your targets are to create a corpus of more than Rs 5 crore and Rs 50 crore, respectively. Now, can you guess how much time it will take? Let's calculate and find -
2/10
Lump Sum Investment in Mutual Funds: Assuming a 13% annualised return
2/10For all calculations, we are assuming a 13 per cent annualised return rate.
3/10
Rs 55,55,555 One-time Investment in Mutual Fund: How many years will it take to build a corpus of over Rs 5 crore?
3/10To create a corpus of over Rs 5 crore with a one-time investment of Rs 55,55,555, one needs to invest in mutual funds for at least 18 years, according to the calculations.
4/10
Rs 55,55,555 One-time Investment in Mutual Fund: Calculating average capital gains
4/10By making a one-time investment of Rs 55,55,555 in mutual funds for 18 years, one can expect a total of Rs 4,45,79,262 (on average) as capital gains. However, it should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.
5/10
Lump sum investment in mutual funds: How much would Rs 55,55,555 one-time investment become in mutual funds in 18 years?
5/10Consequently, at the end of 18 years, you may get a total of Rs 5,01,34,817 (approx.). This includes the principal investment and capital gain.
6/10
Power of One-time Investment in Mutual Fund: Full Calculation Summary
6/10Total Investment Amount: Rs 55,55,555 Capital Gains: Rs 4,45,79,262 Total Approx. Return: Rs 5,01,34,817
7/10
Rs 55,55,555 One-time Investment in Mutual Fund: How many years will it take to build a corpus of over Rs 51 crore?
7/10According to the calculations, to create a corpus of over Rs 51 crore with a one-time investment of Rs 55,55,555, one needs to invest in mutual funds for at least 37 years.
8/10
Rs 55,55,555 One-time Investment in Mutual Fund: Calculating average capital gains
8/10By making a one-time investment of Rs 55,55,555 in mutual funds for 37 years, one can expect a total of Rs 50,56,90,371 (on average) as capital gains. However, it should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.
9/10
Lump sum investment in mutual funds: How much would Rs 55,55,555 one-time investment become in mutual funds in 37 years?
9/10Consequently, at the end of 37 years, you may get a total of Rs 51,12,45,926 (approx.). This includes the principal investment and capital gain.
10/10
Power of One-time Investment in Mutual Fund: Full Calculation Summary
10/10Total Investment Amount: Rs 55,55,555 Capital Gains: Rs 50,56,90,371 Total Approx. Return: Rs 51,12,45,926
- 1
- 2
- 3
- 4
- 5
- 6