Power of Rs 4,99,999 One-time Investment: In how many years, your Rs 4,99,999 lump sum deposit can soar to Rs 2,99,48565

Power of Rs 4,99,999 One-time Investment: What do you do when you want to achieve a large corpus from a small amount? Creating a sizeable corpus from a small investment is not easy, even if you are using market-linked investment options. You may see your investments make explosive growth when the market is high, but you may also see them plummeting to depths when the market slips. The roller-coaster ride of the market can trigger the rise and fall of your corpus. But if you stay in your investments for the long term, the impact of market fluctuations is most likely to lose strength.

A small investment can rise by multiple times. Even a Rs 4,99,999 mutual fund lump sum (one-time) investment can grow to nearly Rs 3,00,000 retirement corpus.

Know in how many years it may be possible!

Example of sharp rise of your investment 

Suppose you have invested Rs 1,00,000 in a mutual fund scheme, and the market is on the rise, where the fund has also risen by 40 per cent in a year.

Within a year, your Rs 100,000 investment can give you capital gains of Rs 40,000.

But the market can have many internal and external factors to fall.

If it slides, the investment can also lose its value.

Example of how investment loses its value

Now take another example of a Rs 1,00,000 one-time investment, where its annualised return for 2 years is 15 per cent.

The investment will increase to Rs 1,32,250.

But if in the third year, the market falls by 40 per cent due to a recession, the investment will lose its value by Rs 52,900, and the total amount will reduce to Rs 79,350.

Long-term investment 

But if the same investment is made for a long period of 25 years, there may be many ups and downs in the market, but in the long term, steady annualised returns are most likely to soar this investment to a large corpus.

If the annualised return is 12 per cent in 25 years, a Rs 1 lakh investment will grow to an estimated Rs 17,00,006.

From Rs 5,99,999 investment to Rs 2,99,48565 corpus

We will calculate it at a 12.5 per cent annualised return.

If we invest this amount for 399 months, or 33 years and 3 months, an investment of Rs 4,99,999 will grow to an estimated corpus of Rs 2,99,48565.

Estimated capital gains on this investment will be Rs 2,94,48,566.