What waiting five years costs
Say Kiran invests ₹2 lakh today and leaves it for 20 years. At 12% a year it can reach about ₹19,29,259. If he waits five years and invests the same ₹2 lakh for only 15 years, it reaches about ₹10,94,713. Same money, same return, but the late start leaves him ₹8,34,546 short at the end.
The delay does not cost the first five years of growth. It costs the last five, which are the biggest.
Frequently asked questions
What will ₹2 lakh become in 10 years?
About ₹6,21,170 if the investment earns 12% a year on average. Your ₹2 lakh would have more than tripled, to 3.11 times. Equity returns are uneven though, so the real figure could be higher or lower.
When does ₹2 lakh cross ₹10 lakh?
At an assumed 12% a year, somewhere between 10 and 15 years. The example shows about ₹6,21,170 at 10 years and ₹10,94,713 at 15 years. A lower return would push this milestone further out.
How much will ₹2 lakh grow in 5 years?
Around ₹3,52,468 at 12% a year, so about ₹1,52,468 in returns. Five years is a short time for equity, though. Markets can have a bad patch, so money needed in 5 years may be better off in a safer option.
Should I invest ₹2 lakh at once or spread it out?
If a market fall worries you, you can spread it over a few months. The 10-year example of ₹6,21,170 assumes the full ₹2 lakh is invested on day one and earns 12% every year, which may not happen in real life.
