Mutual Fund Investment: Starting to invest at 30? This is the lump sum amount you may need to build Rs 2 crore retirement corpus
Mutual Fund Investment Benefits: Lumpsum investments are more convenient than SIPs since you invest once and watch your investment increase.
If you are planning to accumulate funds for your retirement through mutual fund investments then it can be done through one-time investment and monthly SIP (systematic investment plan) too. But before starting an investment, you need to determine how much funds you require at the time of retirement so that you can start investing accordingly. Even if you are starting your investments late in your 30s, you don't need to worry, you can still achieve your financial goal with some calculations.
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Mutual Fund SIP vs one-time investment
In SIP, you can invest a small amount periodically while in a one-time investment or lump sum investment you need to invest a large amount in a mutual fund in one go.
Market fluctuation
Lump sum investments can also be impacted by market fluctuations such as SIPs.
How do lump sum investments work?
A lumpsum investment involves investing the entire money in the market at once. This strategy may be especially useful in a rising market since it permits the total amount to possibly expand from the start. However, it carries a larger risk, particularly in turbulent markets, because the full amount is exposed to market movements at once.
Risk is involved
If you are willing to take risks in your investment strategy, joining the market at a low point may result in higher gains, but be prepared for some volatility.
Minimum investment
According to the Securities and Exchange Board of India (SEBI), the lowest amount that may be placed in a mutual fund in a lump sum transaction is Rs 100. However, certain mutual funds may require a greater minimum investment amount.
Lump sum investments are convenient
Lumpsum investments are more convenient than SIPs since you invest once and watch your investment increase.
Charges
As lump sum deposits are done just one time, they charge minimal costs as compared to regular investments.
Buying at a low price
Lump sum success depends on buying at a low point.
How to accumulate Rs 2 crore fund at retirement if start your investment at 30?
If you make a lump sum investment of Rs 6,80,000 in mutual funds, then you can get Rs over Rs 2 crore at retirement, as per calculations.
Know calculations of accumulating Rs 1 crore corpus
Invested amount: Rs 6,80,000
Estimated returns in 30 years: Rs 1,96,92,747
Maturity amount: Rs 2,03,72,747
Investing in mutual funds is subject to market risks. Consult your advisor before making any investment.