Invest Rs 10 Lakh Once to Get Rs 5.28 Cr: How long-term investment planning can be game-changer for you

Invest Rs 10 Lakh Once to Get Rs 5.28 Cr: Anyone would like to see their investments multiplying by more than 52 times. Such growth is rare, but it is very much within reach of any individual investor, provided they pick the right investment, maintain a good pace of an average return, and give it time to grow. If they manage to do that, their small investment may convert into a significantly larger corpus than the principal amount.

It is quite a possibility that if you invest Rs 10 lakh today in a mutual fund scheme, it may give you Rs 5.28 crore in the future.

But it will take time.

In retirement planning, such a large corpus may be a game-changer for you! Know in how many years you may cover the journey from a Rs 10 lakh investment to a Rs 5.28 crore corpus when you get 12 per cent annualised growth on your investments.

Investment return matters

In an investment, the rate of return is an important aspect. It can help you achieve a financial goal earlier than the expected time. In the long term, the difference of 1 per cent return can result in a larger corpus. Let's see what an Rs 5,00,000 lump sum investment can generate in 30 years at a 10 per cent-15 per cent annualised return. 

You can see that if, instead of 10 per cent, one gets a 12 per cent annualised return from their Rs 5,00,000 investment, the extra estimated corpus that they may generate is Rs 62,55,259.93.

If they get a 15 per cent return instead of 12 per cent, the difference in the corpus generated is Rs 1,81,25,924.92.

Why investment duration is important

The investment duration is another important aspect that determines the corpus generated. The longer period provides extra years of compound growth to investment; as a result, it grows faster with time.

Take the example of a Rs 4,00,000 one-time investment, where the investment return is 12 per cent. Let's see the kind of corpus one may build from it in 12, 24, and 36 years.

In the example, you can see that the estimated investment growth from 12 years to 24 years is Rs 45,13,061.18, but from 24 years to 36, it is Rs 1,75,82,778.

Looking at the example, starting to invest early and for a long time can be the mantra to create a large corpus.

Calculations for story

In the story, we will calculate in how many years an Rs 10,00,000 mutual fund lump sum investment can generate an estimated corpus of Rs 5.28 crore at a 12 per cent annualised return.

It will take an estimated 35 years of time to achieve this target. 

In 35 years, estimated capital gains will be Rs 5,17,99,619.58, and the estimated corpus will be Rs 5,27,99,619.58.

Here is how your investment will pan out.

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