Investment Summary
| Lumpsum Investment | ₹2,00,000 |
| Annual Return Rate (assumed) | 12% |
| Investment Period | 5 years |
| Gains Earned | ₹1,52,468 |
| FD Comparison at 7.25% | ₹2,86,452 |
| Maturity Value | ₹3,52,468 |
Year-Wise Growth vs FD
See how mutual fund compounding compares with a fixed deposit over time:
| Year | Principal | MF Gains | MF Value | FD Value at 7.25% |
|---|---|---|---|---|
| Year 1 | ₹2,00,000 | ₹24,000 | ₹2,24,000 | ₹2,14,899 |
| Year 2 | ₹2,00,000 | ₹50,880 | ₹2,50,880 | ₹2,30,908 |
| Year 3 | ₹2,00,000 | ₹80,986 | ₹2,80,986 | ₹2,48,109 |
| Year 5 | ₹2,00,000 | ₹1,52,468 | ₹3,52,468 | ₹2,86,452 |
Returns at Different Expected Rates
| Annual Return Rate | Gains Earned | Maturity Value |
|---|---|---|
| 8% p.a. | ₹93,866 | ₹2,93,866 |
| 10% p.a. | ₹1,22,102 | ₹3,22,102 |
| 12% p.a. | ₹1,52,468 | ₹3,52,468 |
| 15% p.a. | ₹2,02,271 | ₹4,02,271 |
| 18% p.a. | ₹2,57,552 | ₹4,57,552 |
Calculate Your Mutual Fund Returns
Enter your investment amount and expected returns to see personalised projections.
Use Mutual Fund CalculatorFrequently Asked Questions
What will ₹2 Lakh grow to in 5 years in a mutual fund?
At 12% annual returns, ₹2 Lakh lumpsum investment grows to ₹3,52,468 in 5 years. You earn ₹1,52,468 as returns — a 76% absolute gain.
What are realistic mutual fund returns in India?
Large-cap equity funds have historically returned 10–13% over 10+ year periods. Mid-cap funds: 12–15%. Small-cap: 14–18% (higher risk). Debt funds: 6–8%. Index funds tracking Nifty 50: 11–13% long-term. Past returns don't guarantee future performance — diversify across categories.
Is lumpsum or SIP better for mutual fund investment?
Lumpsum is better when markets are at a low point. SIP is better for regular investing as it averages out entry cost. For ₹2 Lakh over 5 years: lumpsum gives ₹3,52,468 at 12%. An equivalent SIP of ₹3,333/month gives ₹2,74,927 — lumpsum wins when you time it right.
How is lumpsum mutual fund investment taxed?
For equity mutual funds held over 12 months: LTCG tax at 10% on gains above ₹1 lakh per year. Your gain of ₹1,52,468 means approximately ₹5,457 in LTCG tax. For debt funds: all gains are now taxed at your income slab rate regardless of holding period.
What is the best time to invest a lumpsum?
Avoid lumpsum when markets are at all-time highs with high valuations (P/E > 24). Consider lumpsum during market corrections (10–20% falls). If you're unsure, spread your investment over 6–12 months through a Systematic Transfer Plan (STP) from a liquid fund to equity fund.