Which Lump Sum Investment Suits You? ₹5 Lakh for 30 Years vs ₹50 Lakh for 14 Years

When it comes to investing, both time and the amount invested play important roles. This analysis explores how a ₹5 lakh investment over 30 years compares with a ₹50 lakh investment over 14 years, helping illustrate how compounding behaves over different durations and capital levels.

To find out, we use a lump sum calculator with a 12% return assumption and see how compounding behaves over different durations and amounts.

Scenario 1: ₹5 Lakh Invested for 30 Years

When you plug the numbers into a Lump Sum calculator, here's what you get:

Initial Investment: ₹5,00,000

Investment Duration: 30 years

Expected Annual Return: 12% (equity mutual fund)

Corpus After 35 Years: ₹1,49,79,961

Scenario 2: ₹50 Lakh Invested for 14 Years

Initial Investment: ₹50,00,000

Investment Duration: 14 years

Expected Annual Return: 12%

Corpus After 14 Years: ₹2,44,35,561

Comparison Table

The table below presents a side-by-side comparison of two distinct investment strategies based on a consistent 12% annual return. While the first scenario starts with a smaller amount over a longer period, the second involves a much larger investment over a shorter duration.

How the Two Strategies Stack Up

Even though the initial capital in the second scenario is significantly higher, the longer 35-year investment duration in the first scenario results in a larger final corpus. This comparison underscores how both time and amount play crucial roles in investment, and the right strategy may vary depending on one’s financial goals and investment horizon.

Read More: SWP Calculator: ₹10 Lakh Lump Sum Investment to ₹43,700 Monthly — See How

Conclusion

Both scenarios highlight key aspects of investing — the benefits of starting early and the influence of higher capital. A longer investment horizon with a smaller amount allows more time for returns to accumulate, while a larger lump sum over a shorter period can also lead to a substantial corpus. The right approach depends on individual goals, timelines, and resources.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.