Mutual Fund One-time Investment: In how many years can Rs 2.4 lakh MF lump sum investment generate Rs 1,00,00,000 corpus?

You can diversify your assets by investing in stocks, debt funds, and gold through mutual funds. This helps spread the risk and prevents you from putting all of your money in one type of fund.

Bhawna Gupta | Jan 22, 2025, 02:57 PM IST

While SIPs include regular (daily, weekly, monthly, quarterly, half-yearly, and yearly) deposits in mutual funds, lumpsum investing entails depositing a substantial amount in a single transaction. An investor can invest in mutual funds through lump sum (one-time) payments or systematic investment plans (SIPs). While SIPs include regular (daily, weekly, monthly, quarterly, half-yearly, and yearly) deposits in mutual funds, lumpsum investing entails depositing a substantial amount in a single transaction. Investors must select an investing mode depending on their financial objectives, availability of cash, and risk tolerance. 

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Benefits of investing in mutual funds

Benefits of investing in mutual funds

There are several benefits of investing in mutual funds. Take a look:

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Diversification

Diversification

You can diversify your assets by investing in stocks, debt funds, and gold through mutual funds. This helps spread the risk and prevents you from putting all of your money in one type of fund.

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Investment timings

Investment timings

When an investor wwants to make a lump sum investment in mutual funds, he or she has discretion over the time of the transaction. One might opt to invest while market values are low. 

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Well-Regulated

Well-Regulated

The capital markets regulator, the Securities and Exchange Board of India (SEBI), regulates mutual funds under the SEBI (Mutual Funds) Regulations of 1996. 

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Compounding benefits

Compounding benefits

You also get the benefits of compound interest benefits.

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Windfall gains

Windfall gains

Windfall revenues can be best used if a lump sum investment is made rather than a SIP.

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How to generate a Rs 1 crore corpus through one-time mutual fund investment?

How to generate a Rs 1 crore corpus through one-time mutual fund investment?

If a person invests Rs 2,40,000 in mutual funds, he or she can achieve this corpus in 33 years.

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Expected returns

Expected returns

The expected returns would be 12 per cent per annum.

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In how many years one can accumulate this fund?

In how many years one can accumulate this fund?

It will take approximately 33 years to make this corpus.

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Calculations

Calculations

Invested amount: Rs 2,40,000
Estimated returns in 33 years: Rs 98,61,968
Maturity amount: Rs 1,01,01,968

Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.

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