The formula
where P is the amount invested, r the expected yearly return and t the number of years, compounded once a year.
Example
₹1,00,000 invested once for 10 years at an assumed 12% a year grows to about ₹3.1 lakh — the money multiplies about 3.1 times.
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 the buying over time. Many people with a large sum for equity invest it over 6–12 months through a liquid fund and a systematic transfer plan.
Returns on market-linked investments are not guaranteed; read the scheme documents.