In how many years, can Rs 6,70,000 mutual fund lump sum investment generate over Rs 1,00,00,000 and Rs 2,00,00,000 corpuses? Check calculations
Mutual Fund Lump Sum Investment: Lump sum investments are beneficial for investors who have surplus cash and don't want to invest regularly and also don't want any future investment commitments.
SIP or systematic investment plan is a popular way to invest in mutual funds. Investors can either choose a lump sum (one-time) investment plan or do SIP. In SIP, you invest a fixed amount daily, weekly, monthly, quarterly, half-yearly, or yearly, while in lump sum investment, you just need to invest a large sum of money one time only. For example, in SIP, you invest Rs 5,000 per month, but in a lump sum investment, you invest Rs 50,000 at once and wait for your money to grow.
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Benefits of lump sum investment
Both SIP and lump sum investment in mutual funds have their own benefits.
Market timing
As you invest the money in one go, your investment is subject to market fluctuations.
Flexibility
There is no flexibility in lump sum investments.
Time Horizon
A lump sum investment is better for short-term investment goals.
Beneficial in bull markets
It can be beneficial during bull markets.
Will lump sum investment give better returns than SIP?
There are no fixed or guaranteed returns. It also depends on various factors.
In how many years can Rs 6,70,000 mutual fund lump sum investment generate over Rs 2,00,00,000 corpus?
If you make a lump sum investment of Rs 6,70,000 in mutual funds then you will be able to make Rs 2,00,73,148 corpus in 30 years.
Calculations
Invested amount: Rs 6,70,000
Estimated returns: Rs 1,94,03,148
Maturity amount: Rs 2,00,73,148
How much time will it take to create a Rs 1 crore corpus?
If you want to create a Rs 1 crore corpus, then you will have to invest the same amount for 24 years.
Calculations
Invested amount: Rs 6,70,000
Estimated returns: Rs 94,99,681
Maturity amount: Rs 1,01,69,681
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.