The power of compounding explains: Large corpus can create one-time investments of Rs 4 lakh, Rs 900,000 and Rs 15,000,000 in 20 years

One-time investment for 20 years: One-time payment and System Investment Plan (SIP) are two ways to invest in mutual funds. Investors who received a large amount of money in the form of gifts, surprises, office bonuses, return on investment or inheritance shares invested a sum. In the long run, investment can grow to large corpus, which may be multiple times the amount of principal. This growth in investment can help investors achieve many of their financial goals. It can help them build a retirement corpus to retire comfortably.

In this post, if the age is 12%, 13%, 13%, 14%, or 15%, we will see a corpus that can invest Rs 4,00,000, 9,000, and 15,00,000 rupees in one go.

Corpus from investments of Rs 4,00,000 (12%, 13%, 14%, 15%) receives returns in 20 years

The estimated capital gains will be Rs 34,58,517 at a tax rate of 12%, and the estimated corpus will be Rs 38,58,517.

The estimated capital gain is 13%, with an estimated Rs 42,09,235 and an estimated corpus of Rs 46,09,235.

The estimated capital gain is 14%, with an estimated Rs 50,97,396 and an estimated corpus of Rs 54,97,396.

At a tax rate of 15% per year, the estimated capital gain will be Rs 61,46,615 and the estimated corpus will be Rs 65,46,615.

Corpus from investments of Rs 9,00,000 (12%, 13%, 14%, 15%) receives returns in 20 years

The estimated capital gain is 12%, with an estimated Rs 77,81,664 and an estimated corpus of Rs 86,81,664.

The estimated capital gain is 13%, with an estimated Rs 94,70,779 and the estimated corpus will be Rs 1,03,70,779.

The estimated capital gain is 14%, with an estimated Rs 1,14,69,141 and an estimated corpus of Rs 1,23,69,141.

The estimated capital gain is 15%, with an estimated Rs 1,38,29,884 and the estimated corpus will be 1,47,29,884.

From Rs 15,000,000 investment (12%, 13%, 14%, 15%) to the corpus of return.

The estimated capital gain is 12%, with an estimated Rs 1,29,69,440 and an estimated corpus of Rs 1,44,69,440.

The estimated capital gain is 13%, with an estimated Rs 1,57,84,632 and an estimated corpus of Rs 1,72,84,632.

The estimated capital gain is 14%, with an estimated Rs 1,91,15,235 and an estimated corpus of Rs 2,06,15,235.

The estimated capital gain is 15%, with an estimated Rs 2,30,49,806 and an estimated corpus of Rs 2,45,49,806.

in conclusion

In the example above, you can see the role of complexity in long-term investment.

Only 1% additional returns significantly increase the corpus.

On the other hand, the annual rate of return of 3% increased by 70%.

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