Rs 5,50,000 One-time Investment in Mutual Funds: How many years will it take to create a Rs 5 crore corpus? Check Calculations

In mutual fund lump sum (one-time) investment, investors need to invest a large, one-time amount in a specific mutual fund scheme. A Systematic Investment Plan (SIP), on the other hand, entails making smaller, more frequent investments. A SIP is a sequence of smaller, recurring contributions, whereas a lump sum investment is a single, upfront investment.

Benefits of lump sum investment

• Making a sizable investment all at once can result in big gains, particularly during market upswings.
• Because lump sum investments allow for compounding over a longer time frame, they are ideal for long-term financial objectives.
• This investment strategy is a stress-free choice because it does not require you to remember several investment dates.

What should investors consider before making a lump sum investment?

Patience: It takes patience and persistence to invest and then wait for money to grow over time.

Market valuation: You can get an idea of the present state of the market by doing some research.

Returns: Before investing, you should aim for investment returns. For that, check the features of investment plans and whether they can fulfill your goals or not.

Liquidity: Your liquidity needs should also be satisfied by the lump sum investment. 

How many years will it take to create a Rs 5 crore corpus? Check Calculations

If you make a Rs 5,50,000 lump sum investment in mutual funds, then you will be able to accumulate Rs 5,11,78,034 retirement fund in 40 years. 

For example, if you are 20 years old, and you want to make a Rs 5 crore or more retirement corpus by 60, then you can achieve this financial goal by making Rs 5.5 lakh lump sum investment.

Take a look at the calculations: 

Invested amount: Rs 5,50,000
Estimated returns: Rs 5,06,28,034
Time-period: 40 years
Total value: Rs 5,11,78,034 (at 12% per annum returns)

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