Retirement Planning via Mutual Fund Investment: In how many years can you generate over Rs 2,00,00,000 corpus with Rs 5 lakh lump sum investment? Check calculations

In this article, we will calculate how many years will it take to make a corpus of more than Rs 2 crore with Rs 5 lakh one-time investment in mutual funds.

You can expect around 12 per cent annual returns in SIP or lump-sum investment.

A lump sum investment involves investing a big amount in the market at once. This method may be especially useful in a rising market since it permits the total amount to possibly expand from the start. However, it carries a larger risk, particularly in volatile markets, because the full amount is exposed to market movements at once.

In equity funds, the investment should be done for at least three years to earn benefits. For short-term goals, it might be better to go for debt or liquid funds.

Investors who are long-term thinkers and risk-takers should try this method of investment.

This is a stress-free investment option as you don't need to worry about remembering dates.

It is always better to invest when the market falls.

Yes, investors can make additional lump sum deposits in mutual funds when they already have an ongoing SIP.

If you invest Rs 5 lakh in mutual funds for 33 years, you can achieve this goal.

At an expected return of 12 per cent annum, an individual can achieve this goal. In 33 years, the estimated returns on the investment would be Rs 2,05,45,767 and the maturity amount would be Rs 2,10,45,767 (Rs 2.10 crore).

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