A lump-sum investment often raises an important question—can a one-time large deposit generate significant long-term wealth? While lump-sum investing may seem risky, it can deliver solid returns when done with the right strategy and timing. Unlike SIPs, where the investment amount is spread out over months, lump-sum investing allows your entire capital to start earning from day one.
The key concern for many investors, however, is whether ₹9 lakh invested today can grow into ₹50 lakh in 15 years. To understand this, we compare three widely preferred investment options—Gold, Mutual Funds and Fixed Deposits (FDs)—based on estimated long-term returns.
Target: ₹50 lakh
Investment Amount: ₹9,00,000
Time Period: 15 years
Estimated Return Rate: 10% annually
If the investment grows at an average of 10% per year, the total value after 15 years becomes approximately ₹37,59,523. This means a profit of nearly ₹28,59,523.
Gold has historically been considered a safe-haven asset. It performs well during market uncertainty and global crises. However, based on current average returns, gold alone may not help you reach the ₹50 lakh target from a ₹9 lakh lump-sum investment within 15 years.
Target: ₹50 lakh
Investment Amount: ₹9,00,000
Time Period: 15 years
Estimated Return Rate: 12% annually
If your mutual fund portfolio delivers average market-based returns of around 12%, the total amount after 15 years may reach ₹49,26,209, with a profit of about ₹40,26,209.
Among the three investment options, mutual funds offer the closest approach to the ₹50 lakh target. Equity mutual funds have historically delivered better returns over long periods due to stock market growth. For long-term wealth creation, mutual funds remain one of the strongest choices for investors with moderate to high risk tolerance.
Target: ₹50 lakh
Investment Amount: ₹9,00,000
Time Period: 15 years
Estimated Return Rate: 7% annually
At 7% interest, the investment grows to nearly ₹25,48,635 after 15 years, generating a profit of ₹16,48,635.
FDs are known for safety and guaranteed returns, but the earnings are significantly lower compared to market-linked instruments. With these returns, an FD does not come close to achieving the ₹50 lakh target.
Based on the above comparisons, mutual funds clearly emerge as the strongest contender, bringing your investment closest to the ₹50 lakh goal. Gold delivers moderate returns and offers safety during volatile conditions but still falls short of the target. Fixed deposits provide the highest security but the lowest growth.
It is important to remember that all these calculations are based on estimated returns, not guarantees. Market conditions constantly change, which means gold and mutual fund returns may fluctuate. When equity markets rise, mutual funds outperform gold; during economic uncertainty, gold tends to deliver better returns.
Evaluate your risk tolerance before choosing an investment option.
For long-term goals, equity mutual funds may offer better growth potential.
Including some gold in your portfolio helps balance market volatility.
FDs are ideal for investors who do not want any risk at all.
Always consult a certified financial planner before making large investment decisions.
Data Sources: NDTV Profit, Groww Calculator
Disclaimer: This article is for informational purposes only. Money9live does not recommend buying or selling any stock, mutual fund, or investment product. Consult your financial advisor before investing.
