From ₹8,000 to ₹80,00,000, SIP Can Make it Happen with its Power of Compounding Feature!


  • Ever wondered as to how the money gallops to outstanding heights with SIP? Well, it's the power of compounding that makes it happen
  • The returns get compounded periodically to result in a large sum over time

One of the finest ways to build wealth over time is a Systematic Investment Plan (SIP) by which you can invest in mutual funds on a periodical basis, be it daily, weekly, fortnightly, monthly, quarterly, half-yearly or annually. The recurring investments can turn into one big sum over time and make dreams, which may seem impossible at the start, a reality years down the line. Such is the fuel that SIP provides to motor along your investments in both red and green market scenarios. Say thanks to the ‘Power of Compounding’ feature of SIP that can make the impossible possible. When this feature has such a propelling effect to your investments, it deserves a special mention, isn’t it? Why not then be briefed on the benefits the power of compounding has in store for your SIP investments?

A Mathematical Representation of Mutual Fund SIP Magic

The beauty of mutual fund SIP can be expressed subtly through an example below. Suppose you invest ₹8,000 monthly via SIP, how much you are expected to rake in over different periods at an assumed 12% annual rate? Let’s find out in the table below.

Monthly SIP Investment (In ₹)Investment to be Made at the End of 5 Years (In ₹) Estimated Investment Value at the End of 5 Years (In ₹)Investment to be Made at the End of 10 Years (In ₹) Estimated Investment Value at the End of 10 Years (In ₹)Investment to be Made at the End of 15 Years (In ₹)Estimated Investment Value at the End of 15 Years (In ₹)Investment to be Made at the End of 20 Years (In ₹)Estimated Investment Value at the End of 20 Years (In ₹)
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Note – The figures are purely indicative.

Key Takeaways from the Table

The table clearly shows a rewarding future you would most likely witness while investing continuously via an SIP. The investment value has almost doubled in 10 years, tripled in 15 years and grown more than 4 fold in 20 years. This shows that the longer you stay invested better are the chances of massive corpus.

Homework You Must Do to Make the Most of Compounded Benefits

You need to do some homework to reap the benefits pertaining to the Power of Compounding with SIP Investments.

Make an Early Beginning

The table above is some sort of an awakening for all those delaying their investments via SIP. By doing so, you could be robbed off the opportunity to earn more and have to contend with a far lesser proceed than what could be the case otherwise. So, move over your inhibitions and take the plunge with mutual fund SIP soon to top the money charts over time.

Show Investment Discipline

There’s no denying of the fact that mutual fund investments are subject to market risks. So, the SIP investment may not meet your expectations in the short term because of market fluctuations. That may prompt you to sell off the investments and opt for low yielding products only to make matters worse in the future. You must not get fazed by such turbulent times. Instead, you should continue to invest in a disciplined manner via an SIP. It’s because SIP averages the cost of investment by buying more units at a lower price during the fall of the market and less units at a greater price in times of rising markets.

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Keep Your Spending Splurge at Bay

You may be tempted to spend beyond the usual and struggle to save enough for the SIP investment to be deducted from your bank account on time. If you do so, you are compromising greatly on your future at the expense of today’s splurge that you can easily do away with. With the spending in order, you set the right motion for SIP investments.

How to Invest in Mutual Funds via SIP?

You can make SIP investments easily at Wishfin, a neutral financial marketplace that helps you choose the best mutual fund schemes to secure your future. There are a few steps you need to follow and kickstart your mutual fund investments.

  • Go to
  • Click on ‘Mutual Funds’
  • Go to ‘Register’
  • Enter your mobile number
  • Click on ‘Get Started’
  • Mention your name, email ID, the city you live in
  • Create a password that conforms to alphabet, numeric and special character requirements
  • Click on ‘Sign Up’

Your account will be created by entering a few more details.

After Login

  • Go to ‘Explore Mutual Funds’
  • Click on ‘Equity’ icon
  • A list of equity funds with different ratings, denoted in stars, will flash on the screen
  • Click on ‘Invest’ below any of the top-rated schemes you wish to invest in

Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.