Lump sum investment involves putting a large sum of money into an investment all at once. This approach is simple and can allow you to capitalise on market opportunities quickly. By investing a lump sum, you can benefit from market growth without delay. Let’s see how fast a Rs 6 lakh lump sum investment can grow to Rs 1 crore.
What is lump sum investment?
In a lump sum investment, you invest a large amount of money all at once. This means your money starts earning returns right away, and over time, it can grow more because of compounding.
Understanding lump sum investment
In a lump sum investment, you put a large amount of money into an investment all at once. This allows your money to start growing immediately, as the entire amount is invested from the beginning. Over time, your investment can potentially earn higher returns through compounding, helping your wealth grow faster.
What are benefits of lump sum investment?
Immediate Market Exposure: Investors can benefit from any market rallies or opportunities from the start.
Potential for higher returns: Investors’ entire investment compounds, potentially leading to higher returns over time.
Lump Sum Investment: What to know before you invest?
Market Timing: Investing all at once means timing the market perfectly.
Risk: Your entire investment is exposed to market ups and downs at once.
Investment Strategy: Choose investments that fit your risk level and financial goals.
Lump sum investment calculation conditions
- Target corpus: Rs 1 crore
- Lump sum investment: Rs 6 lakh
- Annualised return: 12 per cent
How soon can you generate Rs 1 crore corpus with lump sum investment of Rs 6 lakh?
It will take approximately 25 years to generate this corpus.
What can be your corpus in 10 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 10 years will be 12,63,509, and the estimated corpus in 10 years will be Rs 18,63,509.
What can be your corpus in 15 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 15 years will be 26,84,139, and the estimated retirement corpus in 15 years will be Rs 32,84,139.
What will be your corpus in 20 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 20 years will be 51,87,776, and the estimated retirement corpus in 20 years will be Rs 57,87,776.
What will be your retirement corpus in 25 years with Rs 6 lakh lump sum investment?
The investment amount will be 6,00,000, the estimated capital gains in 25 years will be 96,00,039, and the estimated retirement corpus in 25 years will be Rs 1,02,00,039.
