How a One-Time Investment of ₹5 Lakh Can Create ₹1.5 Crore Retirement Corpus
Discover how you can turn a one-time ₹5 lakh investment into a ₹1.5 crore retirement corpus over 30 years by leveraging the power of compounding.
Why is a Retirement Corpus Essential?
Planning for retirement is crucial to ensure financial independence in your later years. A well-built corpus allows you to meet living expenses comfortably, providing a steady flow of funds throughout your retirement.
Investment Options for Retirement Planning
You can choose from market-linked and non-market-linked options:
- Market-linked: Mutual funds, equities.
- Non-market-linked: Fixed deposits, bonds.
One-Time vs. Monthly Investments
- One-time investment: Deposit a lump sum and let it grow.
- Monthly investment: Contribute a fixed amount regularly, such as through SIPs.
Power of Compounding Over Time
Here’s how investments grow with time:
- SIP: ₹10,000 monthly for 25 years at a 12% return grows to ₹1.89 crore.
- Lump Sum: ₹2.5 lakh invested for 25 years grows to ₹42.5 lakh.
Extending the duration to 30 years significantly increases returns: - SIP: Grows to ₹3.53 crore.
- Lump Sum: Grows to ₹74.9 lakh.
Turning ₹5 Lakh into ₹1.5 Crore
Invest ₹5 lakh in mutual funds at 12% annual returns:
- 10 years: ₹15.5 lakh.
- 20 years: ₹48.2 lakh.
- 30 years: ₹1.5 crore.
Start Early for Maximum Growth
Investing at 25 years of age enables your corpus to reach ₹1.5 crore by 55. Extending to 60 years increases it to ₹2.64 crore, proving that time is your greatest ally in wealth creation.
Disclaimer: Investments are subject to market risks. Conduct independent research before making financial decisions.