Compounding Effect

A salary hike is a good opportunity to increase SIP amount, but investors should first review their financial goals, emergency fund and asset allocation. A disciplined annual SIP step-up of 10–15% can significantly boost long-term wealth creation.

The analysis of 25 years of rolling market data suggests that remaining fully invested in equities gave better long-term returns rather than systematically transferring gains to debt after reaching pre-defined profit targets or market highs.

Start early, build more wealth. This investment planning example shows how the power of compounding helps long-term investing create a significantly larger corpus, even with modest monthly SIP contributions. Understand this concept today to ensure meaningful wealth creation in your life ahead.

If an investor had invested ₹1 lakh in this flexi-cap mutual fund in 2008, the amount would have grown 10 times in the 17 years that followed at an annualised rate of 14.25%.

Mutual Funds: Your monthly contribution via SIPs may fluctuate based on the rate of return your investment delivers. For example, when your investment grows at 12% per annum, you need an SIP of ₹20,016 and when it grows at 9%, you need an SIP of ₹26,426 to save ₹1 crore in 15 years

HDFC Bank shares: Gurmeet Chadha, CIO & Managing Partner at Complete Circle Wealth, in a recent post on the social media platform X, said that he has been consistently buying 10 shares of HDFC Bank every month for more than 15 years, regardless of Indian stock market conditions.

Magic of compounding: If someone had invested ₹one lakh in Invesco India Contra Fund, the investment would have grown to ₹ 11.57 lakh by now. We explain how

Quant ELSS Tax Saver Fund delivered 32.02 percent annualised return in the past five years, Motilal Oswal ELSS Tax Saver Fund gave a CAGR return of 24.14 percent, while Bank of India ELSS Tax Saver Fund gave an annualised return of 25.87 percent.

If someone were proactive enough to put ₹1 lakh in DSP mid cap mutual fund at the time of launch (Nov 2006), it would have grown by 15 times to become ₹15.1 lakh in 17 years and nine months until Aug 30, 2024

HDFC Mid Cap opportunities Fund has given an annualised return of 23.22 percent in the past 10 years. In other words, if someone had invested ₹one lakh 10 years ago, it would have grown to ₹8 lakh by now