One-time Investment For 20 Years: How large corpus can Rs 4 lakh, Rs 9 lakh, and Rs 15 lakh investments create for you in long term

One-time Investment For 20 Years: Lump sum and systematic investment plan (SIP) are two methods to invest in a mutual fund. Investors who get a large sum in the form of a gift, windfall, office bonus, investment return, or inheritance share invest a lump sum amount. The investment in the long term can grow to a large corpus, which can be multiple times the principal amount. Such growth of investments can help an investor achieve their many financial goals. It may help them build a retirement corpus for a comfortable retirement.

In this write-up, we will see how large a corpus can one-time investments of Rs 4,00,000, Rs 9,00,000 and Rs 15,00,000 generate if the annualised return is 12 per cent, 13 per cent, 14 per cent, or 15 per cent.

Corpus from Rs 4,00,000 investment (at 12%, 13%, 14%, 15%) returns in 20 years

At a 12 per cent annualised rate, estimated capital gains will be Rs 34,58,517 and the estimated corpus will be Rs 38,58,517.

At a 13 per cent annualised rate, estimated capital gains will be Rs 42,09,235 and the estimated corpus will be Rs 46,09,235.

At a 14 per cent annualised rate, estimated capital gains will be Rs 50,97,396 and the estimated corpus will be Rs 54,97,396.

At a 15 per cent annualised rate, estimated capital gains will be Rs 61,46,615 and the estimated corpus will be Rs 65,46,615.

Corpus from Rs 9,00,000 investment (at 12%, 13%, 14%, 15%) returns in 20 years

At a 12 per cent annualised rate, estimated capital gains will be Rs 77,81,664 and the estimated corpus will be Rs 86,81,664.

At a 13 per cent annualised rate, estimated capital gains will be Rs 94,70,779 and the estimated corpus will be Rs 1,03,70,779.

At a 14 per cent annualised rate, estimated capital gains will be Rs 1,14,69,141 and the estimated corpus will be Rs 1,23,69,141.

At a 15 per cent annualised rate, estimated capital gains will be Rs 1,38,29,884 and the estimated corpus will be Rs 1,47,29,884.

Corpus from Rs 15,00,000 investment (at 12%, 13%, 14%, 15%) returns in 20 years

At a 12 per cent annualised rate, estimated capital gains will be Rs 1,29,69,440 and the estimated corpus will be Rs 1,44,69,440.

At a 13 per cent annualised rate, estimated capital gains will be Rs 1,57,84,632 and the estimated corpus will be Rs 1,72,84,632.

At a 14 per cent annualised rate, estimated capital gains will be Rs 1,91,15,235 and the estimated corpus will be Rs 2,06,15,235.

At a 15 per cent annualised rate, estimated capital gains will be Rs 2,30,49,806 and the estimated corpus will be Rs 2,45,49,806.

Conclusion 

In the above examples you can see how compounding plays a role in long-term investments.

Just a 1 per cent extra return is increasing the corpus considerably.

On the other hand, a 3 per cent extra annualised return is increasing the corpus by around 70 per cent.

It shows that the long-term investment can help the corpus grow fast.