As per AMFI , another financial idea discovered .The power of a one-time investment or lump sum deposit : If your child is turning eighteen now, your Rs 1,80,000 one-time investment might grow to nearly Rs 2.10 crore by the time they retire. The need is to use the power of compounding to allow the amount to increase.
Retirement corpus, compouding power, and one-time investing power: It may seem strange to make a one-time retirement investment for your child on their eighteenth birthday, but this out-of-the-ordinary present might significantly safeguard their financial future. It could help them reach at least some of their significant financial objectives, if not all of them. The reason for this is because investing early for their retirement, which would occur several decades later, will allow for years of compound growth. Even if they invest more than Rs 1,80,000, they may still accumulate a sizeable retirement fund by the time they are 60 years old. Learn how a one-time investment of Rs 1,80,000 on your child’s 18th birthday might create an approximately Rs 2.10 crore corpus by their retirement.
Benefits of early investment for your child
The best time to start investing for your kid is at their birth. It can give years of compound growth to investments that can magnify them by multiple times by the time your kid reaches college.Let’s see how investments made at the birth of their child can grow by their 18th birthday.
One way is this :
Corpus from Rs 12,000 monthly SIP by your child’s 18th birthday
If you assume that you will get a 12 per cent annualised return on your investment.
In 18 years, your total investment will be Rs 25,92,000, estimated capital gains will be Rs 59,48,743, and the estimated corpus will be Rs 85,40,743. In 20 years, your total investment will be Rs 28,80,000, estimated capital gains will be Rs 81,58,288, and the estimated corpus will be Rs 1,10,38,288.
Corpus from Rs 2,00,000 one-time investment by your child’s 18th birthday
In 18 years, estimated capital gains will be Rs 13,37,993, and the estimated corpus will be Rs 15,37,993. Again if you invest Rs 5,00,000 and get a 12 per cent annualised return on your investments. Let’s see the corpus you may generate in 18 years.
In 18 years, estimated capital gains will be Rs 33,44,983, and the estimated corpus will be Rs 38,44,983.
In 42 years, a Rs 1,80,000 one-time investment will have estimated capital gains of Rs 2,08,30,164.72, while the estimated corpus will be Rs 2,10,10,164.72. Now let’s see one more calculation, where instead of making a one-time investment of Rs 1,80,000, we invest Rs 5,00,000. Let’s see what will be the results. In 42 years, estimated capital gains will be Rs 5,78,61,568.66, and the estimated corpus will be Rs 5,83,61,568.66.
Final point :
An early start can give you an edge to create a large corpus for your child’s retirement corpus or other financial goals. If you start with a large amount, it can be a cherry on the cake.
If you want to invest in Mutual Fund , you have to open account.
Below is the link via which you can open account in FUNDZBAZAR and start investing.
Writer is the AMFI registered Mutual Fund Distributor. To reach him please write mail for more information : nuralamahmed14@gmail.com
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