A lump sum investment involves putting a large sum of money to work at once, allowing you to capitalise on market opportunities quickly and benefit from potential growth without delay. This approach is simple and efficient, with a single transaction completing the investment. Let’s see how fast an Rs 8 lakh lump sum investment can grow to Rs 1 crore, depending on the returns generated.
How lump sum investment work?
Investors need to make a one-time investment, putting in the entire amount at once. This decision is based on their assessment of current market conditions, with no option for further payments.
What are benefits of lump sum investment?
Immediate Market Exposure: Investors can benefit from any market rallies or opportunities from the start.
Potential for higher returns: Investors’ entire investment compounds, potentially leading to higher returns over time.
Lump Sum Investment: What to know before you invest?
Market Timing: Investing all at once means timing the market perfectly.
Risk: Your entire investment is exposed to market ups and downs at once.
Investment Strategy: Choose investments that fit your risk level and financial goals.
Lump sum investment calculation conditions
Target corpus: Rs 1 crore
Lump sum investment: Rs 8 lakh
Annualised return: 12 per cent
How soon can you generate Rs 1 crore corpus with lump sum investment of Rs 8 lakh?
It will take approximately 23 years to generate this corpus.
What can be your corpus in 10 years with Rs 8 lakh lump sum investment?
The investment amount will be 8,00,000, the estimated capital gains in 10 years will be 16,84,679, and the estimated corpus in 10 years will be Rs 24,84,679.
What can be your corpus in 15 years with Rs 8 lakh lump sum investment?
The investment amount will be 8,00,000, the estimated capital gains in 15 years will be 35,78,853, and the estimated retirement corpus in 15 years will be Rs 43,78,853.
What will be your corpus in 20 years with Rs 8 lakh lump sum investment?
The investment amount will be 8,00,000, the estimated capital gains in 20 years will be 69,17,034, and the estimated retirement corpus in 20 years will be Rs 77,17,034.
What will be your retirement corpus in 23 years with Rs 8 lakh lump sum investment?
The investment amount will be 8,00,000, the estimated capital gains in 23 years will be 1,00,41,878, and the estimated retirement corpus in 23 years will be Rs 1,08,41,878.
Also Read: Power of Rs 1,50,000 PPF Investment: How many years will it take to generate Rs 1.2 lakh/month tax-free income from Public Provident Fund?
