Do you how much amount you will get after 20 years by investing One-Time Investment of Rs 13 Lakhs?
Are you wondering how to turn your savings into regular monthly income? If you have a lump sum amount like Rs 13,00,000, you can invest it smartly to get a steady income every month for years. Let’s understand how a mutual fund and Systematic Withdrawal Plan (SWP) can help you do this.
Learn how a one-time mutual fund investment of Rs 13 lakhs can grow to Rs 1.87 crore in 20 years at 15% annual returns. See the power of compounding and how it generates monthly income.
What Is a Systematic Withdrawal Plan (SWP)?
An SWP is a method of taking out a fixed amount of money regularly from a mutual fund investment. After you invest a lump sum in a mutual fund, the SWP allows you to withdraw money every month. This helps in creating a steady income, especially useful after retirement.
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Why Monthly Income Matters After Retirement?
After retirement, it’s important to have financial independence. This means being able to pay for your daily needs without depending on others. A regular monthly income from your investment can help you:
- Cover your monthly expenses
- Maintain your lifestyle
- Avoid financial stress
How Rs 13,00,000 investment will you monthly income?
With the right mutual fund and SWP plan, a one-time investment of Rs 13,00,000 can grow over time and give you a monthly income. This is possible if your investment grows at a good annual return (for example, around 14% to 15% per year).
Important Note: These numbers are based on estimated returns. Actual returns can vary depending on market conditions and the fund’s performance.
How your investment would grown
If you have invested 13 lakhs rupees as a one time investment on 1st January 2005 in one of the mutual funds gave 15% yearly return.
At 5th years in Dec 2010 you would have received interest of 25 lakhs and you portfolio size should be around 38 lakhs.
At 10th years in Dec 2015 you would have received interest of 36 lakhs and you portfolio size should be around 49 lakhs.
At 15th years in Dec 2020 you would have received interest of 74 lakhs and you portfolio size should be around 87 lakhs.
At 20th years in Dec 2025 you would have received interest of 1.74 Cr and you portfolio size should be around 1.87 Cr.
This investment of 13 lakhs will become 1.87 crore in 20 years. This is the power of compounding in mutual fund investment. Once investment reaches 1.87 crore, even without investing more, you can start earning 25 lakhs rupees as interest at 15% per annum. This around 2 lakhs per month without reducing the capital. So, start early make the most of compounding. Mutual fund investment with good return can grow your significantly over time. A one-time investment can give you regular income later in life.
This is the power of long-term investing and mutual fund growth. Let your money work for you.
READ MORE: SIP Return Calculator – How to Calculate Your SIP Returns with Step-Up SIP & Types
Benefits of Using Mutual Funds and SWP for Monthly Income
- Steady Income: You get a fixed amount every month
- Flexibility: You can change the withdrawal amount anytime
- Tax Efficiency: Better tax treatment compared to interest income from FD
- Growth Potential: Mutual funds have the potential to grow your money over time
Who Should Consider This Investment Plan?
This strategy is ideal for:
- Retired individuals looking for monthly income
- People with a large lump sum who don’t want to spend it all at once
- Investors seeking a passive income option
Final Thoughts: Secure Your Future with Smart Investment
If you’re planning for retirement or looking for a way to earn monthly income from a one-time investment, combining a mutual fund with an SWP can be a smart choice.
Disclaimer: This is not an investment or financial advice. Always consult a financial advisor before investing to choose the right fund and plan based on your needs and risk level.
READ MORE: 20 Factors to Consider Before Investing in Mutual Funds
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