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One-time Investment For 20 Years: Lump sum and systematic investment plan (SIP) are two methods to invest in a mutual fund. Investors who get a large sum in the form of a gift, windfall, office bonus, investment return, or inheritance share invest a lump sum amount. The investment in the long term can grow to a large corpus, which can be multiple times the principal amount. Such growth of investments can help an investor achieve their many financial goals. It may help them build a retirement corpus for a comfortable retirement.

In this write-up, we will see how large a corpus can one-time investments of Rs 4,00,000, Rs 9,00,000 and Rs 15,00,000 generate if the annualised return is 12 per cent, 13 per cent, 14 per cent, or 15 per cent.

At a 12 per cent annualised rate, estimated capital gains will be Rs 34,58,517 and the estimated corpus will be Rs 38,58,517.

At a 13 per cent annualised rate, estimated capital gains will be Rs 42,09,235 and the estimated corpus will be Rs 46,09,235.

At a 14 per cent annualised rate, estimated capital gains will be Rs 50,97,396 and the estimated corpus will be Rs 54,97,396.

At a 15 per cent annualised rate, estimated capital gains will be Rs 61,46,615 and the estimated corpus will be Rs 65,46,615.

At a 12 per cent annualised rate, estimated capital gains will be Rs 77,81,664 and the estimated corpus will be Rs 86,81,664.

At a 13 per cent annualised rate, estimated capital gains will be Rs 94,70,779 and the estimated corpus will be Rs 1,03,70,779.

At a 14 per cent annualised rate, estimated capital gains will be Rs 1,14,69,141 and the estimated corpus will be Rs 1,23,69,141.

At a 15 per cent annualised rate, estimated capital gains will be Rs 1,38,29,884 and the estimated corpus will be Rs 1,47,29,884.

At a 12 per cent annualised rate, estimated capital gains will be Rs 1,29,69,440 and the estimated corpus will be Rs 1,44,69,440.

At a 13 per cent annualised rate, estimated capital gains will be Rs 1,57,84,632 and the estimated corpus will be Rs 1,72,84,632.

At a 14 per cent annualised rate, estimated capital gains will be Rs 1,91,15,235 and the estimated corpus will be Rs 2,06,15,235.

At a 15 per cent annualised rate, estimated capital gains will be Rs 2,30,49,806 and the estimated corpus will be Rs 2,45,49,806.

In the above examples you can see how compounding plays a role in long-term investments.

Just a 1 per cent extra return is increasing the corpus considerably.

On the other hand, a 3 per cent extra annualised return is increasing the corpus by around 70 per cent.

It shows that the long-term investment can help the corpus grow fast. 

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