What does it mean?
How a fixed monthly investment in mutual funds can compound into a large corpus over time.
How does it work?
It takes your monthly SIP amount, the expected annual return and the number of years, then compounds every instalment month on month.
Formula:
FV = P × [ ((1 + i)^n − 1) / i ] × (1 + i)
P – monthly investment, i – monthly return (annual ÷ 12), n – number of months
Example: ₹10,000 a month for 15 years at 12% grows to about ₹50 lakh — of which only ₹18 lakh is what you put in.
FOLO Tip: Track every SIP across funds in one place on FOLO so your NetWorth updates the moment markets move.