How Long Does It Take for ₹6.5 Lakh Lump Sum Investment to Grow into ₹3 Crore?

Lump sum investments are a popular choice for individuals with a substantial amount of money to invest and a long-term financial goal. They offer the potential for significant wealth creation over time but also come with inherent risks due to market volatility. This article explores how a ₹6.5 lakh lump sum investment in mutual funds can grow into a corpus of ₹3 crore. 

Achieving a ₹3 Crore Corpus: The Numbers

Let’s calculate how a ₹6.5 lakh investment can turn into ₹3 crore over 30 years:

• Initial Investment: ₹6,50,000
• Investment Period: 30 years
• Average Annual Return: 13%

Using a mutual fund returns calculator from Angel One, the estimated future value is approximately ₹3,01,80,095, comprising:

• Invested Amount: ₹6,50,000
• Estimated Return: ₹2,95,30,095

Why Start Early?

If you begin investing at the age of 30 with a goal to retire at 60, you have a 30-year horizon to achieve your financial goals. Starting early allows your investment to benefit from the exponential power of compounding, making it easier to achieve a larger corpus with a smaller initial amount.

Importance of Long-Term Investing

For lump sum investments in equity mutual funds, a minimum holding period of 5-year is generally recommended to benefit from the power of compounding and market growth. For long-term goals, such as retirement planning, equity funds are often a preferred choice due to their potential for higher returns.

This demonstrates how time and compounding work together to create significant wealth.

Conclusion

A ₹6.5 lakh lump sum investment in mutual funds has the potential to grow into ₹3 crore over 30 years, assuming an annual return of 13%. However, it’s essential to evaluate your risk tolerance, financial goals, and market conditions before opting for this strategy. By starting early and staying disciplined, you can achieve your financial aspirations with the power of compounding.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.