Power of Lump Sum Investment: How many years can it take to generate over Rs 10,00,00,000 corpus with Rs 11 lakh one-time investment? Check out calculations

A lump sum investment means you invest the entire amount in one go and wait for your money to grow and see the magic of compounding.

When returns earned on your investment generate further returns, it is called compounding. This means you are earning interest on interest.

With a lump sum investment of Rs 11 lakh, you can easily create a Rs 10 crore corpus in 40 years. 

Invested amount: Rs 11,00,000 Estimated returns: Rs 10,12,56,067 Time: 40 years Total amount: 10,23,56,067

In the above calculations, we have assumed a 12 per cent annualised return.

If you invest Rs 11 lakh for 10 years, you can create a corpus of Rs 34,16,433, while in 20 years, the corpus will be more than 3x, i.e., Rs 1,06,10,922, at the same 12 per cent annualised return.

Invested amount: Rs 11,00,000 Estimated returns: Rs 3,18,55,914 Time: 40 years Total amount: Rs 3,29,55,914

Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.