Invest Rs 1 million at a time to get Rs 522 crore? Long-term investment plans can change the rules of the game
Invest Rs 1 million at a time and get a CR of Rs 5.28: Anyone would like to see their investment reproduce more than 52 times. This kind of growth is rare, but any individual investor can touch on it as long as they choose the right investment, keep the average return on a good pace and give it time to grow. If they manage to do so, their small investments may translate into a much larger corpus than the main amount.
If you invest Rs 1 million today in a mutual fund scheme, you may be given Rs 522 crore in the future.
But it will take time.
Such a large corpus could be a game-changer for you in a retirement plan! Know that when you get an annual increase of 12% in investment, you may cover a journey from Rs 1 million to Rs 528 crore in how many years you may be covering.
Return on investment is important
In investment, return is an important aspect. It can help you achieve your financial goals earlier than expected. In the long run, differences in return rates may lead to larger corpus. Let’s look at one-time investments generated in 30 years with 10%15% annual returns over 30 years.
You can see that if you get an annual return of 12% from an investment of Rs 500,000 at 10%, the additional estimated corpus that may be generated is Rs 62,55,259.93.
If they get a 15% return instead of 12%, the difference in the resulting corpus is Rs 1,81,25,924.92.
Why investment duration is important
Investment duration is another important aspect of the corpus that determines the generated. The longer term provides additional compound growth for investment. As a result, it grows faster over time.
Take a one-time investment of Rs 4,00,000 as an example, with a return on investment of 12%. Let’s look at the kind of corpus that might be built from it in 12, 24 and 36 years.
In the example, you can see that the estimated investment growth from 12 to 24 years is Rs 45,13,061.18, but from 24 to 36 years, it is Rs 1,75,82,778.
Take a look at this example and it’s a long time to start investing, which is probably a spell to create a large corpus.
Calculation of the story
In the story, we will calculate how many years the mutual fund investment of Rs 10,000,000 is estimated at Rs 528 crore and age is 12%.
It will take about 35 years to achieve this.
In 35 years, the estimated capital gains will be Rs 5,17,99,619.58 and the estimated corpus will be Rs 5,27,99,619.58.
This is how your investment will be phased out.
(Disclaimer: This is not investment advice. Do due diligence or consult an expert for financial planning.)
