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Power of Rs 1,00,000 One-time Investment in Mutual Fund: In how much time your lump sum investment can generate around Rs 50,00,000, Rs 81,00,000 and Rs 1,00,00,000 corpus
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
Power of Rs 1,00,000 One-time Investment in Mutual Fund: Mutual funds 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: lump sum investment and monthly investment.
Lumpsum Investment: Lumpsum investment, also called one-time investment in mutual funds, is an investment in which a large sum of money is invested all at once, rather than in smaller periodic installments.
Monthly investment: Monthly investment in mutual funds, commonly known as SIP, is an investment strategy that allows investors to invest a fixed amount at regular intervals.
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.
Let's assume you are making a one-time investment of Rs 1,00,000 in mutual funds and aiming to create a corpus of around Rs 50,00,000, Rs 81,00,000 and Rs 1 crore. Now, can you guess how much time it will take? Let's calculate and find -
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
1/11
Lump Sum Investment in Mutual Funds: Assuming a 13% annualised return
1/11For all calculations, we are assuming a 13 per cent annualised return rate.
2/11
Rs 1,00,000 One-time Investment in Mutual Fund: How many years will it take to build a corpus of around Rs 50 lakh?
2/11According to the calculations, to create a corpus of around Rs 50 lakh with a Rs 1,00,000 one-time investment, one needs to invest for at least 32 years in mutual funds.
3/11
Rs 1,00,000 One-time Investment in Mutual Fund: Final amount received after 32 years?
3/11At the end of 32 years, you will receive around Rs 49,94,709 as the final amount, which includes capital gains of Rs 48,94,709.
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Power of 1 lakh One-time Investment in Mutual Fund: Full calculation summary for Rs 50 lakh corpus
4/11Total Investment Amount: Rs 1,00,000 Capital Gains: Rs 48,94,709 Total Approx. Return: Rs 49,94,709
5/11
Rs 1,00,000 One-time Investment in Mutual Fund: How many years will it take to build a corpus of around Rs 81 lakh?
5/11According to the calculations, to create a corpus of around Rs 81 lakh with a Rs 1,00,000 one-time investment, one needs to invest for at least 36 years in mutual funds.
6/11
Rs 1,00,000 One-time Investment in Mutual Fund: Final amount received after 36 years?
6/11At the end of 36 years, one will receive around Rs 81,43,741 as the final amount, which includes capital gains of Rs 80,43,741.
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Power of 1 lakh One-time Investment in Mutual Fund: Full calculation summary for Rs 81 lakh corpus
7/11Total Investment Amount: Rs 1,00,000 Capital Gains: Rs 80,43,741 Total Approx. Return: Rs 81,43,741
8/11
Rs 1,00,000 One-time Investment in Mutual Fund: How many years will it take to build a corpus of around Rs 1 crore?
8/11According to the calculations, to create a corpus of around Rs 1 crore with a Rs 1,00,000 one-time investment, one needs to invest for at least 38 years in mutual funds.
9/11
Rs 1,00,000 One-time Investment in Mutual Fund: Final amount received after 38 years?
9/11At the end of 38 years, one will receive around Rs 1,03,98,743 as the final amount, which includes capital gains of Rs 1,02,98,743.
10/11
Power of 1 lakh One-time Investment in Mutual Fund: Full calculation summary for Rs 1 crore corpus
10/11Total Investment Amount: Rs 1,00,000 Capital Gains: Rs 1,02,98,743 Total Approx. Return: Rs 1,03,98,743
11/11
Mutual Fund Returns on Lumpsum Investment: Actual amount may vary
11/11It should be noted that these are expected return, and the actual amounts may vary depending on the market conditions.
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