When it comes to building wealth through Systematic Investment Plans (SIPs), many investors assume that investing a larger sum guarantees greater returns. However, the SIP calculator reveals a different story. The longer your money stays invested, the more effectively compounding multiplies your returns, especially in the later years.
An investor contributing ₹50,000 per month at an expected annualised return of 12% over 10 years will accumulate ₹1,16,16,954. Of this, the invested amount is ₹60,00,000, while the estimated returns are ₹56,16,954.
Although the monthly investment is substantial, the total wealth creation remains limited because the investment horizon is relatively short. The compounding effect has less time to accelerate growth.
Another investor, contributing ₹25,000 per month at the same 12% annualised return for 20 years, ends up with a total value of ₹2,49,78,698. The invested amount remains ₹60,00,000, identical to the previous scenario, but the estimated returns jump significantly to ₹1,89,78,698.
The key difference is time. The extended investment period allows compounding to work exponentially, especially during the later stages when returns begin to generate their own returns.
The SIP calculator clearly shows that time in the market is more valuable than timing or amount. Compounding acts like a snowball; the longer it rolls, the larger it grows. Increasing your SIP amount may help initially, but giving your investment more time unleashes the true potential of compounding.
In essence, increasing your tenure multiplies your wealth, while merely increasing the SIP amount only adds to it.
Read More: SIP Calculator: How Much Time Will It Take To Become A Crorepati With SIPs of ₹10,000 and ₹20,000 Per Month!
The comparison between both scenarios sends a simple message: Patience and discipline triumph over haste and size. Staying invested for a longer duration can create significantly more wealth than investing larger amounts for shorter periods.
When planning your SIP, focus on consistency and longevity. Let time and compounding quietly work together to build wealth that endures.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Oct 16, 2025, 4:24 PM IST
Team Angel One
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