Power of One-time Investment, Power of One-time Investment: We make investments to make our future secure.

We may make investments for our minors to make their future secure.

Investment has such power that if it is made at the right time and gets time to grow, it may help you achieve your key financial goals easily.

But a large corpus from a small investment is possible when you have a long-term investment horizon, when you are not in a hurry to withdraw your investments, and when you have the self-control to not spend from your investments at the drop of a hat.

By following in such footsteps, you will not only be able to achieve financial goals for yourself but also for your kids.

Even if you make a Rs 1,80,000 one-time investment on the 18th birthday of your minor, they may achieve a retirement fund of over Rs 2.10 crore from the same amount. Know how it may be possible – 

Why is long-term investment important?

The investment duration can be based on your financial goals and the amount you invest.

But a long-term investment has its own benefits.

It can create a large corpus even with a small monthly or one-time investment.

Let’s understand through examples how investments can grow in the long term.

From Rs 5,000 SIP to Rs 3.5 crore corpus

If a person starts with a Rs 5,000 monthly SIP investment and gets a 13 per cent annualised return on their investments, let’s see how their investments can grow in 15, 25, and 35 years.

In 15 years, total investment will be Rs 9,00,000, estimated capital gains will be Rs 16,92,624, and the estimated corpus will be Rs 25,92,624.  

In 25 years, total investment will be Rs 15,00,000, estimated capital gains will be Rs 84,82,392, and the estimated corpus will be Rs 99,82,392.  

In 35 years, total investment will be Rs 21,00,000, estimated capital gains will be Rs 3,29,67,459, and the estimated corpus will be Rs 3,50,67,459.  

From Rs 7,50,000 one-time investment to Rs 2.25 crore corpus

In 10 years, estimated capital gains will be Rs 15,79,386, and the estimated corpus will be Rs 23,29,386.

In 20 years, estimated capital gains will be Rs 64,84,720, and the estimated corpus will be Rs 72,34,720.

In 30 years, estimated capital gains will be Rs 2,17,19,942, and the estimated corpus will be Rs 2,24,69,942.

Rs 1,80,000 one-time investment on 18th birthday

Here, we will show how you can generate a retirement corpus of over Rs 2.10 crore for your minor if you invest Rs 1,80,000 on their 18th birthday.

What will be retirement age?

We will take 60 as the retirement age, so the investment that you make for your minor will see compound growth for 42 years.

Retirement fund from Rs 1,80,000 one-time investment 

In 42 years, a Rs 1,80,000 one-time investment will have estimated capital gains of Rs 2,08,30,164.72, while the estimated corpus will be Rs 2,10,10,164.72.

(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)