100X Return: Know in how many years will your Rs 1 lakh investment turn into Rs 25 lakh, Rs 50 lakh, Rs 75 lakh, and Rs 1 crore?
Power of Compounding: If one invests for a long term, their Rs 1 lakh investment can reach up to Rs 1 crore. But for that, patience and consistent returns are the key factors. Know how the power of compounding can grow your wealth by hundreds of times.
Mutual Fund Return Calculations: What if someone says that your Rs 1 lakh investment will turn into Rs 10 lakh? You will surely be happy knowing the possibility of this growth, provided your returns come from legitimate means. But not just Rs 10 lakh; it can grow to Rs 25 lakh, Rs 50 lakh, or Rs 1 crore if one stays in their investment for a long time. This can happen because of the power of compounding, where your investment grows faster as it gets older. A little investment can grow to a level that can help you achieve many financial goals. Let's see how you can grow your wealth through the power of compounding and in how many years your Rs 1 lakh investment can grow by 25X, 50X, 75X and 100X.
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Power of compounding
In compound returns, you get growth also on the return portion of your investment. When the growth gets bigger, compounding increases your returns faster. Let's understand it with a few examples.
How Rs 3,500 monthly SIP investment will grow in 10, 20, 30, and 40 years
At a 12 per cent annualised return, the total investment in 10 years will be Rs 4,20,000, estimated capital gains will be Rs 3,93,187, and the estimated corpus will be Rs 8,13,187.
How Rs 3,500 monthly SIP investment will grow in 20 years
At the same return, in 20 years, the total investment will be Rs 8,40,000, estimated capital gains will be Rs 26,57,018, and the estimated corpus will be Rs 34,97,018.
How Rs 3,500 monthly SIP investment will grow in 30 years
At the same return, in 30 years, the total investment will be Rs 12,60,000, estimated capital gains will be Rs 1,10,94,698, and the estimated corpus will be Rs 1,23,54,698.
How Rs 3,500 monthly SIP investment will grow in 40 years
At the same return, in 40 years, the total investment will be Rs 16,80,000, estimated capital gains will be Rs 3,99,08,471, and the estimated corpus will be Rs 4,15,88,471.
How Rs 50,000 lump sum investment will grow in 10, 20, 30, and 40 years
At a 12 per cent annualised return in 10 years, estimated capital gains will be Rs 1,05,292, and the estimated corpus will be Rs 1,55,292.
How Rs 50,000 lump sum investment will grow in 20 years
At the same return, in 20 years, estimated capital gains will be Rs 4,32,315, and the estimated corpus will be Rs 4,82,315.
How Rs 50,000 lump sum investment will grow in 30 years
At the same return, in 30 years, estimated capital gains will be Rs 14,97,996, and the estimated corpus will be Rs 14,47,996.
How Rs 50,000 lump sum investment will grow in 40 years
At the same return, in 40 years, estimated capital gains will be Rs 46,02,549, and the estimated corpus will be Rs 46,52,549.
How Rs 1 lakh will grow 25X, 50X, 75X, and 100X
Here, we are taking an annualised return of 12.25 per cent, and will show in how many years Rs 1 lakh can grow to Rs 25 lakh, Rs 50 lakh, Rs 75 lakh, and Rs 1 crore.
From Rs 1 lakh investment to Rs 25 lakh corpus
It will take an estimated 28 years to reach that stage.
At a 12.25 per cent annualised return, estimated capital gains will be Rs 24,42,247, and the estimated corpus will be Rs 25,42,247.
From Rs 1 lakh investment to Rs 50 lakh corpus
It will take an estimated 34 years to reach that stage.
At the same rate of return, estimated capital gains will be Rs 49,85,526, and the estimated corpus will be Rs 50,85,526.
From Rs 1 lakh investment to Rs 75 lakh corpus
It will take an estimated 38 years to reach that stage.
At the same rate of return, estimated capital gains will be Rs 79,73,861, and the estimated corpus will be Rs 80,73,861.
From Rs 1 lakh investment to Rs 1 crore corpus
It will take an estimated 40 years to reach that stage.
At the same rate of return, estimated capital gains will be Rs 1,00,73,116, and the estimated corpus will be Rs 1,01,73,116.
What are learnings?
It took approximately 28 years to reach the Rs 25 lakh target, but the Rs 50 lakh target was achieved in the next 6 years, the Rs 75 lakh target was achieved in the next 4 years, and the corpus reached Rs 1 crore in the next 2 years. This exponential growth happens because of the power of compounding.