Retirement Planning: How much will you need to invest today to get Rs 2 crore by the age of 40 and Rs 20 crore by the age of 60..
Shikha Saxena July 11, 2025 07:15 PM

Retirement Planning: Investing early in your career can be crucial to securing your future and can help you avoid years of hardship. Imagine you have made a lump sum (one-time) investment in a mutual fund in your mid-20s, laying the foundation for your retirement life. This investment can help you have an estimated ₹2 crore by your 40th birthday and ₹20 crore by your 60th birthday. With this amount, you can take early retirement at the age of 40 or postpone it for a few years so that your investments grow rapidly. Let's find out how much you need to invest today to achieve your goal of ₹2 crore by the age of 40 and ₹20 crore by the age of 60.

Mutual Fund Investment Retirement Planning

Mutual funds have been a popular investment instrument for retirement planning. These offer opportunities to invest in large companies, foreign markets, fixed interest bonds, global funds, etc. Investors can choose the mutual fund type or assets as per their risk appetite and retirement goals. They can modify their strategy, pause, or resume investing.

The important role of return on investment
When we talk about creating a certain amount from investments, the projected return will decide how soon or late we will achieve that goal. Just 1 per cent additional return on your investment can make a big difference in the long run. For example, if your annual investment return is 12 per cent, your lump sum investment of Rs 5 lakh can grow to Rs 1,49,79,961 in 30 years. However, if you get a 13 per cent annual return on it, the projected amount can be Rs 1,95,57,949.

We will calculate the estimated amount for a 25-year-old person to have Rs 2 crore at the age of 40 and Rs 20 crore at the age of 60. We will take a 12 per cent annual return for our calculation.

Investment to reach Rs 2 crore, Investment to reach Rs 20 crore

To achieve both goals, an estimated lump sum investment of Rs 38 lakh is required. In 15 years, the estimated capital gain will be Rs 1,69,99,550, and the estimated total amount will be Rs 2,07,99,550. In 35 years, the estimated capital gain will be Rs 19,68,38,554 and the estimated total amount will be Rs 20,06,38,554.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.

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