
If you have a lump sum of 30 lakh rupees and you think where and how to invest it so that this big amount is made in the future, then mutual funds can be a great option. Mutual funds increase your money rapidly by investing in shares, bonds and other assets, not gradually, but rapidly through compounding. That is, the longer the time gives, the bigger the benefit will be.
How long will one crore be made
If you invest 30 lakh rupees in mutual funds at a time and consider an average of 12 per cent annual returns, then in about 11 years this money will increase to Rs 1 crore. It will benefit about 74 lakh rupees i.e. capital gains and your total amount will be made about 1 crore 4 lakh rupees. This means that only the investment amount will not increase, but will also get the benefit of interest on interest which is the real reason for this growth.
In how many years 2 crore
Now if you think that think ahead of one crore and your goal is Rs 2 crore, then for this you will have to be a little more patience. If you maintain the same 30 lakh rupees in mutual funds for 17 years, then your total amount can be around 2 crore 6 lakh rupees. Out of this, 1 crore 76 lakh rupees will only be the return. It suggests that as time increases, the scale of returns also gets bigger. And this is the real magic of compounding.
How long will three crores be built?
Now talk about a big target like 3 crore rupees. If you have invested the same 30 lakh rupees and kept it in mutual funds for 21 years, then your amount can increase to about 3 crore 24 lakh rupees. The profit received in this entire time will be about 2 crore 94 lakh rupees, that is, more than 9 times than your real investment amount. This is the best example of the best example of how powerful investment is in the long term, especially when it comes to mutual funds like equity-based investment.
The real return will depend on the market
Keep in mind, all the calculations mentioned above are based on an estimated 12 percent annual return. But the real return can go above or even below, because mutual funds are connected to the market. Therefore, it is necessary to consult your financial advisor before any investment.
Be patient, wealth will be made yourself
If you can wait for a long time and do not tease your investment, then a lump sum investment like 30 lakh rupees can be converted from 1 crore to 3 crore rupees and that too only by patience, time and power of compounding. Large floors can be achieved by starting with small steps and mutual funds are one of its best means.
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