A lump sum investment involves putting a substantial amount of money to work at once, allowing you to capitalise on market opportunities swiftly and benefit from potential growth without delay. This straightforward approach requires just one transaction, making it simple and efficient. Now, let’s explore how quickly a lump sum investment of Rs 4 lakh can grow to a Rs 1 crore corpus.
Understanding lump sum investment
With a lump sum investment, you invest the entire amount upfront, allowing your money to start generating returns immediately and potentially leading to higher returns over time due to the power of compounding.
How lump sum investment work?
Investors need to make a one-time investment, putting in the entire amount at once. This decision is based on their assessment of current market conditions, with no option for further payments.
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 4 lakh
Annualised return: 12 per cent
How soon can you generate Rs 1 crore corpus with lump sum investment of Rs 4 lakh?
It will take approximately 29 years to generate this corpus.
What can be your corpus in 10 years with Rs 4 lakh lump sum investment?
The investment amount will be 4,00,000, the estimated capital gains in 10 years will be 8,42,339, and the estimated corpus in 10 years will be Rs 12,42,339.
What can be your corpus in 15 years with Rs 4 lakh lump sum investment?
The investment amount will be 4,00,000, the estimated capital gains in 15 years will be 17,89,426, and the estimated retirement corpus in 15 years will be Rs 21,89,426.
What will be your corpus in 20 years with Rs 4 lakh lump sum investment?
The investment amount will be 4,00,000, the estimated capital gains in 20 years will be 34,58,517, and the estimated retirement corpus in 20 years will be Rs 38,58,517.
What will be your retirement corpus in 29 years with Rs 4 lakh lump sum investment?
The investment amount will be 4,00,000, the estimated capital gains in 29 years will be 1,02,99,972, and the estimated retirement corpus in 29 years will be Rs 1,06,99,972.
Also Read: Rs 14,000 SIP vs Rs 10,000 Step-up SIP: Which can generate a higher corpus in 10,20 & 30 years?
