Power of Rs 1,50,000 One-time Investment: In how many years, Rs 1.5 lakh lump sum amount can reach Rs 15 lakh, Rs 25 lakh, Rs 50 lakh, Rs 80 lakh? Know here
Power of Rs 1,50,000 One-time Investment: A lump sum investment can multiply your wealth by many times if you have the patience to let your investments grow in the long term. A one-time investment of Rs 1,50,000 can grow to up to Rs 80 lakh in the long term even if you gets 12 per cent annualised return on your investments. Know in how many years.
Power of Rs 1,50,000 One-time Investment: Most retail investors have a monthly income cycle, so they prefer monthly investment to a lump sum. As it helps them invest steadily and let their amount grow to a sizeable corpus in the long run. However, many times, we got a lump sum amount that we can also invest one time and take the benefit of long-term compounding. Even if the amount is not large such as Rs 10 lakh or Rs 20 lakh, long-term compounding can grow your small lump sum investment to a large corpus. A Rs 1,50,000 one-time investment can also grow to Rs 15 lakh, Rs 25 lakh, Rs 50 lakh, and Rs 80 lakh. See in how many years!
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(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
How one-time investment works
In a one-time investment in mutual funds, you invest the entire sum in one go and let this amount grow. You may not get significant results in the short term because of market fluctuations, but in the long term, the results can multiply your investment by many times.
When is right time to make one-time investment?
Ideally, one should make a one-time investment when the market is low, but it is impossible to know if the market will go further down. So, one can make a one-time investment if they have a long-term investment horizon.
Power of compounding in one-time investment
In compound growth, one gets a return on their returns and not just on the principal amount. So, the growth may not be significant in the initial few years. But in the long run, even a 1-year return can surpass the principal amount easily. Let's understand it with a few examples.
From Rs 50,000 one-time investment to Rs 26.4 lakh corpus
Here, if one invests Rs 50,000 and gets an annualised return of 12 per cent on their investment, they can get a Rs 26.4 lakh corpus in 35 years.
What is even more significant is that from the 20th year itself, their annual growth will be more than Rs 50,000.
From Rs 50,000 one-time investment to Rs 26.4 lakh corpus
In the 35th year of their investment, they will get Rs 2,82,856 just in the form of growth.
So, you can see that in the long run, even a one-year growth is more than 5 times the one-time investment.
From Rs 1,00,000 one-time investment to Rs 30 lakh corpus
A person who starts this investment today and gets a 12 per cent annualised return on their investment can achieve this target in approximately 30 years.
In 30 years, their estimated capital gains will be Rs 28.96 lakh, and the estimated corpus will be Rs 29.96 lakh.
From Rs 1,00,000 one-time investment to Rs 30 lakh corpus
Here also, the annual growth from the 20th year will be more than Rs 1 lakh.
In the 30th year, the estimated growth will be Rs 3,21,000, which is 3.2 times the principal invested.
Who may opt for one-time investment
Anyone who gets a significant sum in the form of an office bonus, inheritance share, windfall from somewhere, or return from investments may opt for it. The important thing to remember is that they must have a long-term investment horizon to let this amount grow.
Goals that may be achieved through one-time investment
One can achieve financial goals such as retirement, home buying, vehicle buying, child education, child marriage, travel, etc., through the returns earned from a one-time investment.
From Rs 1,50,000 one-time investment to Rs 80 lakh corpus
We will see how a Rs 1.5 lakh one-time investment will grow in different stages, and at what points, it will reach Rs 15 lakh, Rs 25 lakh, Rs 50 lakh, and Rs 80 lakh. The annualised rate of return will be 12 per cent.
From Rs 1,50,000 one-time investment to Rs 15 lakh corpus
One may achieve this goal in approximately 21 years.
In 21 years, estimated capital gains will be Rs 14,70,577 and the estimated corpus will be Rs 16,20,577.
From Rs 1,50,000 one-time investment to Rs 25 lakh corpus
One may achieve this goal in approximately 25 years.
In 25 years, estimated capital gains will be Rs 24,00,010 and the estimated corpus will be Rs 25,50,010.
From Rs 1,50,000 one-time investment to Rs 50 lakh corpus
One may achieve this goal in approximately 31 years.
In 31 years, estimated capital gains will be Rs 48,83,267 and the estimated corpus will be Rs 50,33,267.
From Rs 1,50,000 one-time investment to Rs 80 lakh corpus
One may achieve this goal in a little over 35 years.
In 35 years, estimated capital gains will be Rs 77,69,943 and the estimated corpus will be Rs 79,19,943.