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Rs 9,00,000 One-time Investment in Mutual Funds: How many years will it take to create a Rs 1,00,00,000, Rs 3,00,00,000 and Rs 8,00,00,000 corpuses? Check calculations
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
Lump sum investment in mutual funds is a one-time payment, preferably for a long period. This allows you to benefit from compounding returns on a larger sum from the beginning. This article calculates the returns on lump-sum mutual fund investments to know how many years it will take to create a corpus of Rs 1 crore, Rs 3 crore, and Rs 8 crore on a Rs 9 lakh one-time investment.
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1/10
Rs 9,00,000 one-time investment for Rs 1 crore corpus
1/10If a person invests Rs 9,00,000, they can accumulate more than Rs 1 crore fund in 22 years. This means to get the funds for retirement, they need to invest at the age of 38.
2/10
Calculations to create a Rs 1 crore corpus
2/10Invested amount: Rs 9,00,000 Estimated returns: Rs 99,90,279 Time period: 22 years Maturity amount: Rs 1,08,90,279
3/10
Rs 9,00,000 one-time investment for Rs 3 crore corpus
3/10If a person invests Rs 9,00,000, they can accumulate more than Rs 3 crore fund in 31 years. This means to get the funds for retirement, they need to invest at the age of 29.
4/10
Calculations to create a Rs 3 crore corpus
4/10Invested amount: Rs 9,00,000 Estimated returns: Rs 2,92,99,601 Time period: 31 years Maturity amount: Rs 3,01,99,601
5/10
Rs 9,00,000 one-time investment for Rs 8 crore corpus
5/10If a person invests Rs 9,00,000, they can accumulate more than Rs 10 crore fund in 40 years. This means to get the funds for retirement, they need to invest at the age of 20.
6/10
Calculations to create Rs 8 crore corpus
6/10Invested amount: Rs 9,00,000 Estimated returns: Rs 8,28,45,873 Time period: 40 years Maturity amount: Rs 8,37,45,873
7/10
Rs 9,00,000 one-time investment for Rs 31 lakh corpus
7/10If a person invests Rs 9,00,000, they can accumulate more than Rs 31 lakh fund in 11 years.
8/10
Calculations to create a Rs 31 lakh corpus
8/10Invested amount: Rs 9,00,000 Estimated returns: Rs 22,30,695 Time period: 11 years Maturity amount: Rs 31,30,695
9/10
Annual returns
9/10In the above calculations, we have assumed an annualised return of 12 per cent.
10/10
Conclusion
10/10With the above three examples, you can see that you can get better returns in a long period. If you invest the same amount (Rs 9 lakh) for 22 years, you will get Rs 1 crore, but in 40 years, the maturity amount will be 8x i.e. Rs 8 crore.
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.
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