SIP (Systematic Investment Plan) is a method of investing a fixed amount every month in mutual funds. It helps grow wealth through compounding over time.
FV = P × (((1+r)^n −1)/r) × (1+r)
Where:
P = Monthly Investment
r = Monthly Interest Rate
n = Total Months
If ₹5000/month for 10 years at 12%
Returns grow significantly due to compounding