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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
- Written by Bhawna Gupta
Published: Zee Business| Updated: Zee Business
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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1/10
Benefits of lump sum investment
1/10Both SIP and lump sum investment in mutual funds have their own benefits.
2/10
Market timing
2/10As you invest the money in one go, your investment is subject to market fluctuations.
3/10
Flexibility
3/10There is no flexibility in lump sum investments.
4/10
Time Horizon
4/10A lump sum investment is better for short-term investment goals.
5/10
Beneficial in bull markets
5/10It can be beneficial during bull markets.
6/10
Will lump sum investment give better returns than SIP?
6/10There are no fixed or guaranteed returns. It also depends on various factors.
7/10
In how many years can Rs 6,70,000 mutual fund lump sum investment generate over Rs 2,00,00,000 corpus?
7/10If 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.
8/10
Calculations
8/10Invested amount: Rs 6,70,000 Estimated returns: Rs 1,94,03,148 Maturity amount: Rs 2,00,73,148
9/10
How much time will it take to create a Rs 1 crore corpus?
9/10If you want to create a Rs 1 crore corpus, then you will have to invest the same amount for 24 years.
10/10
Calculations
10/10Invested 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.
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