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In how many years can Rs 6.5 lakh mutual fund lump sum investment generate over Rs 3,00,00,000 corpus?
- Written by Bhawna Gupta
Published: Zee Business| Updated: Zee Business
A lump sum or one-time investment is one of the ways to invest in mutual funds. The other way is a systematic investment plan (SIP). Both methods have their own pros and cons. In a lump sum investment, investors invest a huge amount in one go and wait for their money to grow. While in SIP, they invest a small amount in mutual funds regularly. However, before investing, investors should decide on their goal. This can be for retirement, education, buying a car or house, or for any other purpose.
Other than mutual fund investments, there are many ways to invest and grow your money. One traditional method is a fixed deposit (FD). This method is very popular among senior citizens as it provides a fixed interest on the investment. Because there is no other income source after retirement, they prefer to invest in safer schemes. Apart from FD, there are other post office investment schemes like Kisan Vikas Patra, Senior Citizen Savings Scheme (SCSS), Post Office Time Deposit (TD), National Savings Certificate (NSC), among others.
In this article, we will calculate the maturity amount on a one-time investment of Rs 6.5 lakh in mutual funds in 34 years. Take a look:
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1/9
What should be the minimum period to make a lump sum investment?
1/9Since you are investing a big amount altogether, you should hold it for at least three years to earn benefits. For short-term goals, it might be better to go for debt or liquid funds.
2/9
Who should make a lump sum investment?
2/9Investors who are long-term thinkers and risk-takers should try this method of investment.
3/9
Is it a convenient method to invest in mutual funds?
3/9This is a stress-free investment option as you don't need to worry about remembering dates.
4/9
When to choose the lump-sum investment option?
4/9It is always better to invest when the market falls.
5/9
Is lump sum investment profitable?
5/9Lump sum investments provide the potential for higher profits, but they also carry risk. They're great for long-term investors who are fine with market volatility. Otherwise, SIPs may be a better choice.
6/9
How to make Rs 3,06,42,636 corpus through the lump sum investment option?
6/9If you invest Rs 6,50,000 in mutual funds for 34 years, you can achieve this goal.
7/9
Expected return rate
7/9The average return rate is calculated at 12 per cent per annum.
8/9
Calculations for making Rs 3.06 crore corpus
8/9Invested amount: Rs 6,50,000 Estimated returns: Rs 2,99,92,636 Maturity amount: Rs 3,06,42,636
9/9
Can investors go from SIP to a lump sum in the same mutual fund?
9/9Yes, investors can make additional lump sum deposits in mutual funds when they already have an ongoing SIP.
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.
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