When planning for retirement, everyone wants to start investing early. While a Systematic Investment Plan (SIP) in mutual funds is often considered a top choice for wealth creation, many people are unaware that one can also make a lump-sum investment. A common misconception is that mutual fund investing is limited to small, periodic contributions; however, a lump-sum investment allows you to invest a substantial amount all at once.

So, if you were to invest ₹5 lakh as a lump sum in a mutual fund today for a period of 10, 15, or 20 years, how much would that amount grow to? If the investment remains untouched for 20 years, could it reach close to ₹80 lakh or even more? Let’s understand this through the calculations below.

**Tenure** | **10% Return** | **12% Return** | **15% Return**
--- | --- | --- | ---
**10 Years** | ₹12.97 lakh | ₹15.53 lakh | ₹20.23 lakh
**15 Years** | ₹20.89 lakh | ₹27.37 lakh | ₹40.69 lakh
**20 Years** | ₹33.64 lakh | ₹48.43 lakh | ₹81.83 lakh

**How ​​much money will accumulate in 10 years?**
If you invest ₹5 lakh as a lump sum, the amount could grow to approximately ₹12.97 lakh in 10 years, assuming a 10% return. At a 12% return, the figure would be around ₹15.53 lakh, and at a 15% return, it could reach approximately ₹20.23 lakh.

**How ​​much will the amount grow to in 15 years?**
The picture changes significantly when considering a 15-year investment horizon for a lump-sum amount. To illustrate with calculations: at a 10% return, ₹5 lakh grows to approximately ₹20.89 lakh; at a 12% return, it reaches about ₹27.37 lakh; and at a 15% return, it can grow to around ₹40.69 lakh. Notably, the difference between the 10% and 15% return scenarios is approximately ₹19.80 lakh. This demonstrates that a 5% difference in returns can have a significant impact over the long term.

Calculation for a 20-year investment
The effect of compounding is most pronounced when an investment is maintained for 20 years. At a 10% return, ₹5 lakh can grow to approximately ₹33.64 lakh. At a 12% return, this amount could reach around ₹48.23 lakh, and at a 15% return, it could rise to about ₹81.83 lakh.

Investing in mutual funds has become the preferred choice for everyone today, from salaried professionals to the general public. Therefore, you should make investment decisions by considering factors such as returns, maturity, and the potential corpus.

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