Retirement Planning from One-time Investment: Investing early in your career to secure your future may save you years of hardships. Imagine a situation where your mutual fund lump sum (one-time) investment made in your mid-20s lays the foundation of a retirement life where you have an estimated Rs 2 crore by your 40th birthday and Rs 20 crore by your 60th birthday. With that amount, you may take an early retirement at 40 or may delay it for years only to see your investment grow exponentially. Let’s break down numbers to know how much you may need to invest today to touch the Rs 2 crore corpus mark by 40 years of age and Rs 20 crore by 60.
Mutual fund investment retirement planning
Mutual funds have been a popular investment tool for retirement planning.
They provide exposure to large companies, foreign markets, fixed interest bonds, global funds, etc.
Investors can select mutual fund types or assets according to their risk appetite and retirement goals.
They can revise their strategy, stop, or restart their investments.
Investment return plays key role
When we talk about generating a certain corpus from an investment, the estimated return will decide how soon or late we will achieve that goal. Just 1 per cent extra return on your investments can make a huge difference in the long run.
E.g., if your annualised investment return is 12 per cent, your Rs 5 lakh lump sum investment can grow to Rs 1,49,79,961 in 30 years.
However, if you get a 13 per cent annualised return on it, the estimated corpus can be Rs 1,95,57,949.
Calculation for story
We will calculate the estimated amount that can help a 25-year-old to get Rs 2 crore by 40 and Rs 20 crore by 60. We will take a 12 per cent annualised return for our calculation.
Investment to reach at Rs 2 cr by 40, Rs 20 cr by 60
It will take an estimated Rs 38 lakh one-time investment to achieve both targets.
In 15 years, estimated capital gains will be Rs 1,69,99,550, and the estimated corpus will be Rs 2,07,99,550.
In 35 years, estimated capital gains will be Rs 19,68,38,554, and the estimated corpus will be Rs 20,06,38,554.
Investment table year-wise growth (for Rs 2 cr corpus in 15 years)
| Year | Corpus |
| 1 | ₹ 42,56,000.00 |
| 2 | ₹ 47,66,720.00 |
| 3 | ₹ 53,38,726.40 |
| 4 | ₹ 59,79,373.57 |
| 5 | ₹ 66,96,898.40 |
| 6 | ₹ 75,00,526.20 |
| 7 | ₹ 84,00,589.35 |
| 8 | ₹ 94,08,660.07 |
| 9 | ₹ 1,05,37,699.28 |
| 10 | ₹ 1,18,02,223.19 |
| 11 | ₹ 1,32,18,489.97 |
| 12 | ₹ 1,48,04,708.77 |
| 13 | ₹ 1,65,81,273.82 |
| 14 | ₹ 1,85,71,026.68 |
| 15 | ₹ 2,07,99,549.89 |
Investment table year-wise growth (for Rs 20 cr corpus in 35 years)
| Year | Corpus |
| 1 | ₹ 42,56,000.00 |
| 2 | ₹ 47,66,720.00 |
| 3 | ₹ 53,38,726.40 |
| 4 | ₹ 59,79,373.57 |
| 5 | ₹ 66,96,898.40 |
| 6 | ₹ 75,00,526.20 |
| 7 | ₹ 84,00,589.35 |
| 8 | ₹ 94,08,660.07 |
| 9 | ₹ 1,05,37,699.28 |
| 10 | ₹ 1,18,02,223.19 |
| 11 | ₹ 1,32,18,489.97 |
| 12 | ₹ 1,48,04,708.77 |
| 13 | ₹ 1,65,81,273.82 |
| 14 | ₹ 1,85,71,026.68 |
| 15 | ₹ 2,07,99,549.89 |
| 16 | ₹ 2,32,95,495.87 |
| 17 | ₹ 2,60,90,955.38 |
| 18 | ₹ 2,92,21,870.02 |
| 19 | ₹ 3,27,28,494.42 |
| 20 | ₹ 3,66,55,913.75 |
| 21 | ₹ 4,10,54,623.40 |
| 22 | ₹ 4,59,81,178.21 |
| 23 | ₹ 5,14,98,919.60 |
| 24 | ₹ 5,76,78,789.95 |
| 25 | ₹ 6,46,00,244.75 |
| 26 | ₹ 7,23,52,274.11 |
| 27 | ₹ 8,10,34,547.01 |
| 28 | ₹ 9,07,58,692.65 |
| 29 | ₹ 10,16,49,735.77 |
| 30 | ₹ 11,38,47,704.06 |
| 31 | ₹ 12,75,09,428.55 |
| 32 | ₹ 14,28,10,559.97 |
| 33 | ₹ 15,99,47,827.17 |
| 34 | ₹ 17,91,41,566.43 |
| 35 | ₹ 20,06,38,554.40 |
(Disclaimer: This is not investment advice. Do your own due diligence or consul an expert for financial planning.)
