ICRA59 min ago
Power of Rs 40,00,000 One-time Investment in Mutual Fund: In how much time can your lump sum investment be doubled?
- Written by Priya Vishwakarma
Published: Zee Business| Updated: Zee Business
Power of Rs 40,00,000 One-time Investment in Mutual Fund: Have you ever thought about building a substantial fund through a one-time investment? Instead of keeping your money in a locker, it is a wise decision to put it into a good investment option. Start investing; it is always better to begin sooner rather than later. Even if your investment isn't large or regular, the fund generated over the long term can grow to be quite significant. Know how a mutual fund lump sum investment works. How it can create almost double the corpus from a one-time investment, and how a Rs 40,00,000 one-time investment can create a Rs 80 lakh corpus.
Image Source: Getty Images
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
1/10
What is a mutual fund?
1/10Mutual funds are an asset class that invests money in various assets, such as stocks, equities, and bonds, on behalf of investors. There are many advantages to investing in mutual funds, such as compounding, diversification, rupee cost averaging, liquidity, and more.
2/10
Types of mutual funds
2/10There are two main types of mutual funds: SIP (monthly investment) and Lump sum investment (One-time investment).
3/10
Advantages of mutual funds
3/10There are many advantages to investing in mutual funds, such as compounding, diversification, rupee cost averaging, liquidity, and more.
4/10
One-time investment in a mutual fund
4/10Let's assume you are making a one-time investment of Rs 40,00,000 in mutual funds and aim to double your corpus to around Rs 80,00,000. Now, can you guess how much time it will take? Let's calculate and find -
5/10
Lump Sum Investment in Mutual Funds: Assuming the annualised return rate
5/10For all calculations, we are assuming an 11 per cent annualised return rate.
6/10
Rs 40,00,000 One-time Investment in Mutual Fund: How many years will it take to build a corpus of around Rs 80,00,000?
6/10To create a corpus of around Rs 80,00,000 with a Rs 40,00,000 one-time investment, one needs to invest for at least 7 years in mutual funds, according to the calculations.
7/10
Rs 40,00,000 One-time Investment in Mutual Fund: Calculating average capital gains
7/10One can expect a total of Rs 43,04,641 (on average) as capital gains by making a one-time investment of Rs 40,00,000 in mutual funds for 7 years, which is more than what one invests.
8/10
Mutual Fund Returns on Lumpsum Investment: Actual amount may vary
8/10However, it should be noted that this is an expected return, and the actual amount may vary depending on the market conditions.
9/10
How much would a Rs 40 lakh monthly investment become in mutual funds in 7 years?
9/10Consequently, at the end of 7 years, you may get a total of Rs 83,04,641 (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 40,00,000 Capital Gains: Rs 43,04,641 Total Approx. Return: Rs 83,04,641
- 1
- 2
- 3
- 4
- 5
- 6