How much of the final amount is your money
After 10 years, only ₹5 lakh of the ₹15,52,924 is what you put in. The other ₹10,52,924, about two-thirds, is returns. Stretch it to 20 years and the value is about ₹48,23,147, with nearly 90% of it coming from growth.
That is also why the last few years matter so much for a goal like college fees. If markets fall just before the fees are due, a big chunk of the gains can shrink. Many parents move the money slowly to safer options in the last two or three years.
Frequently asked questions
What will ₹5 lakh become in 10 years?
At an expected 12% a year, about ₹15,52,924. That is 3.11 times your money. The actual amount depends on how markets do over those 10 years, so treat this as an estimate, not a fixed result.
Can ₹5 lakh become ₹50 lakh?
Not quite in 20 years at 12% a year. The example shows about ₹48,23,147 after 20 years, so it gets close. It would need a little longer or a higher return, and higher returns usually come with more risk.
What does ₹5 lakh give in 5 years?
About ₹8,81,171 at 12% a year, so ₹3,81,171 in returns. Over just 5 years, though, equity can easily return much less than 12%, and the value may even dip below ₹5 lakh for a while.
Is ₹5 lakh enough for a child's education in 10 years?
It depends on the course and the college. At 12% a year, ₹5 lakh may grow to about ₹15,52,924 in 10 years. Fees also rise every year, so check today's cost of the course you have in mind and add for inflation.
