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New Delhi: People often wonder how right it is to invest big money in one go. Lumpsum investment sounds risky, but it can prove to be very beneficial if the right planning and timing are chosen. In this method, the investor invests all the money at the beginning, instead of depositing a small amount every month. The biggest benefit of lumpsum investment is that you start getting returns on the entire money from the first day.
However, if the investment is not made on time, the risk also increases. Nevertheless, this method can give good returns in the long term, especially in mutual fund schemes. In such a situation, the big question now is whether a lump sum investment of Rs 9 lakh can increase to Rs 50 lakh in 15 years? Let's look at three popular investment options: gold, mutual funds and fixed deposits (FDs) and their estimated earnings.
Rs 50 Lakh Investment Amount: Rs 9,00,000
Duration: 15 Years
Estimated Return Rate: 10%
After 15 years you will get about Rs 37,59,523.
It will have a benefit of about Rs 28,59,523. That is, gold gives good returns, but it is not enough to reach the target of Rs 50 lakh. However, gold is always considered a safe option in uncertain times.
Target: Rs 50 Lakh
Investment Amount: Rs 9,00,000
Tenor: 15 Years
Estimated Return Rate: 12%
After 15 years you can get around Rs 49,26,209. This includes a benefit of about Rs 40,26,209. It seems to be giving the highest return among the three options and comes very close to the target (Rs 50 lakh). In the long run, the stock market gives an opportunity to earn better through mutual funds, so it is considered a strong option.
Target: Rs 50 Lakh
Investment Amount: Rs 9,00,000
Duration: 15 years
Estimated Return Rate: 7%
After 15 years, the total amount will be about Rs 25,48,635, with a profit of Rs 16,64,835. FDs are safe, returns are fixed, but the earnings here are quite low and there is no possibility of reaching the target.
Which option is best?
It is clear from the above three assumptions that mutual funds reach the target of Rs 50 lakh. Gold gives good returns but does not reach the target. FD is the safest but gives the lowest return. Note that these are all guesses, not guarantees of any kind. The market keeps moving up and down, so mutual funds and gold sometimes move ahead, sometimes behind each other. When the stock market rises, mutual funds give fast returns, whereas gold shines in uncertain circumstances.
Advice for investors
Invest by understanding your risk appetite. Mutual funds can be a better option for the long term. It is good to keep a small amount of gold in the portfolio, so that there is protection against fluctuations. FDs are suitable for those who do not want to take any risk at all. Consult a certified financial planner before making any major investment decision.
Data Source: Groww Calculator
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
