Retirement Planning: In how many years, your Rs 4,00,000 one-time investment can lead to Rs 2,00,00,000 corpus

Retirement Planning: Investments can change your life, but they can also mar your investment portfolio! It will depend on how you pursue them! Do you quit when your investment is negative or stay firm to let bad times pass by? Do you invest when the market rises and withdraw when it falls, or is it vice versa? Your investment is most likely to give you returns from the perspective of how you handle it. If you lose nerve after a short-term market decline, you may fall way short of your financial goals, but if you stick to facing the poor phase with patience and grace, you may achieve financial goals that otherwise appear difficult to achieve.

If you sail through the tides of odds, you may create a sizeable corpus from a small investment.

Such a corpus can be 10X, 20X, 50X, or higher compared to your invested amount.

Likewise, even a Rs 4,00,000 one-time investment can lead you to a Rs 2,00,00,000 corpus! But in how many years? Know in this article!

Returns on Investment 

The years to achieve a financial goal depend on the investment return. A 0.50 per cent or 1 per cent extra return may appear to be insignificant in a short duration, but in the long run, they may create surprising results.

Let’s see if you get 12 per cent and 12.5 per cent annualised returns on a Rs 10 lakh investment, what will be the corpus that you may create in 35 years? 

At a 12 per cent annualised return, estimated capital gains will be Rs 5,17,99,620, and the estimated corpus will be Rs 5,27,99,620.

But if the annualised return is 12.5 per cent, estimated capital gains will be Rs 6,07,07,547 and the estimated corpus will be Rs 6,17,07,547.

12%, 13% return on Rs 5,000 SIP investment in 35 years

Now let’s see how a Rs 5,000 monthly SIP investment will grow at a 12 per cent and 13 per cent return, respectively, in 35 years.

At a 12 per cent annualised return, estimated capital gains will be Rs 2,54,54,156, and the estimated corpus will be Rs 2,75,54,156.

At a 13 per cent annualised return, estimated capital gains will be Rs 3,29,67,459, and the estimated corpus will be Rs 3,50,67,459.

From Rs 4,00,000 one-time investment to Rs 2 crore corpus

We will calculate in how many years this target can be achieved if the annualised rate of return is 12 per cent, 13 per cent and 14 per cent.

From Rs 4,00,000 one-time investment to Rs 2 crore corpus (at 12 per cent return)

At a 12 per cent annualised return, it can be achieved in an estimated period of 35 years, where estimated capital gains will be Rs 2,07,19,848 and the estimated corpus will be Rs 2,11,19,848.

From Rs 4,00,000 one-time investment to Rs 2 crore corpus (at 13 per cent return)

At a 12 per cent annualised return, it can be achieved in an estimated period of slightly over 32 years, where estimated capital gains will be Rs 1,95,78,836 and the estimated corpus will be Rs 1,99,78,836.

From Rs 4,00,000 one-time investment to Rs 2 crore corpus (at 14 per cent return)

At a 12 per cent annualised return, it can be achieved in an estimated period of 30 years, where estimated capital gains will be Rs 1,99,80,063 and the estimated corpus will be Rs 2,03,80,063.

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