Lump sum investment in mutual funds
Investing in Mutual Funds: Many people prefer lump sum investment in mutual funds. There are many benefits of investing at once. If you invest a lump sum of Rs 1 lakh and maintain it for a long time, it can turn into a huge fund. Let us understand in this article what is lump sum investment and if we invest Rs 1 lakh for 30 years, how big it can be.
Definition of lump sum investment
Lump sum investment means investing a large amount at one go. This amount grows over time and gives you good returns in the long term.
Benefits of investing now
- You can take full advantage of compound interest.
- It helps in wealth creation.
- You gain financial freedom.
- You are able to achieve your big goals.
Why 30 years?
The more time you keep in a lump sum investment, the more your money grows due to compound interest and you get bigger returns.
What can you achieve?
- retirement fund
- higher education of children
- economic freedom
- your dream lifestyle
important things
- It is important to survive in the market.
- Maintain investments for the long term.
- Small beginnings lead to big futures.
- Avoid premature withdrawals.
Potential value of investment of Rs 10 lakh in 30 years
Estimated Annual Return (%) Expected value after 30 years
8% Rs 10,06,266 (10.06 lakh)
10% Rs 17,45,745 (17.45 lakh)
12% Rs 30,24,213 (30.24 lakh)
15% Rs 66,07,593 (66.07 lakh)
Examples of your goals after 30 years
- Retirement Fund Rs 10 lakh – Rs 66 lakh+
- Higher education of children Rs 10 lakh – Rs 66 lakh+
- Dream house or car Rs 10 lakh – Rs 66 lakh+
- Economic freedom is not a price, it is priceless.