Lumpsum vs SIP
A lumpsum investment puts the whole amount to work on day one, so it benefits from compounding for the longest time. A SIP spreads the investment over months, reducing the risk of investing everything at a market peak.
Lumpsum suits you when you have a large amount available (a bonus, maturity proceeds or an inheritance) and a long horizon. Many investors park a lumpsum in a debt fund and move it into equity gradually through an STP (Systematic Transfer Plan).
Formula
Future value = P × (1 + r)t. The inflation-adjusted value divides this by (1 + inflation)t to show what the money will be worth in today's purchasing power.
Returns from mutual funds are market-linked and not guaranteed; past performance does not indicate future returns.