A figure of Rs 1 crore is quite tempting indeed. Do you wish to achieve as well? Well, you can. If you wish to accrue a sum of Rs 1 crore, you can invest in mutual funds. Investing in mutual funds require an investor to make several decisions. One such decision requires deciding the right investment mode for your mutual funds. As an investor, you can either invest via SIP (Systematic Investment Plan) or lumpsum mode of investment. Depending on your age, if you are a salaried investor or not, your risk profile, financial goals, and investment tenure you must determine the correct mode of investment.
How to accumulate a figure of Rs 1 crore?
You can use a mutual fund lumpsum calculator* to evaluate the future value of your investments. A lumpsum calculator can also help you determine the number of years needed to achieve a sum of Rs 1 crore. The following table takes into account different interest rates and investment amount to reach Rs 1 crore.
| Lumpsum investment | Estimate time to achieve a corpus of 1 crore | |||||
| Expected rate of interest on mutual fund investments | 6% | 8% | 10% | 12% | 15% | 20% |
| Rs 5 lac | 50+ years | 39 years | 32 years | 27 years | 22 years | 17 years |
| Rs 10 lac | 40 years | 30 years | 24 years | 20 years | 16 years | 13 years |
| Rs 20 lac | 28 years | 21 years | 17 years | 14 years | 12 years | 9 years |
| Rs 25 lac | 24 years | 18 years | 15 years | 12 years | 10 years | 8 years |
| Rs 30 lac | 21 years | 16 years | 13 years | 11 years | 9 years | 7 years |
From the table, you can deduce that the sum of Rs 10 lac can turn into a figure of Rs 1 crore anywhere between 13 years to 40 years, depending on the rate of interest earned by your investments. Note that, 40 years is a long time. So, if you wish to become a crorepati sooner, consider making an SIP investment along with a lumpsum investment of Rs 10 lac.
Would a sum of Rs 1 crore be sufficient to fulfil your future goals?
While this seven-figure might seem a significant amount right now, it might not have the same significance in a few years down the line. And if your mutual fund investments would take 10-20 years to achieve this sum, it might lose its charm. Why, you may wonder. The answer is simple – the power of inflation. Inflation eats away a huge portion of your investments. Because of this, the purchasing power parity of a consumer also decreases over a period of time. Thus, an investor is always advised to factor in inflation and accordingly plan your finances. So, what are you waiting for? Invest today and achieve your financial goals. Happy investing!
*Note that a lumpsum calculator is not a definitive indicator of the value of your investments
