Formula
Future value = P × (1 + r)^n, where r is the yearly return and n the number of years.
Example
₹1,00,000 invested once at an assumed 12% a year for 10 years grows to about ₹3,10,585.
Lumpsum or SIP?
A lumpsum puts all the money to work at once, which helps if markets rise but hurts if they fall soon after. A SIP spreads purchases over time. Many investors park a lumpsum in a liquid fund and move it into equity through a monthly transfer (STP).
Mutual fund investments are subject to market risks. Returns are not guaranteed.