#powerofcompounding

The power of compounding highlights why long-term investing matters.

With disciplined SIP investing, returns generated over time can themselves start generating additional growth. This creates the potential for exponential wealth creation over longer investment horizons.

Time and consistency remain key ingredients for successful investing.

The “10-7-10” SIP rule is a simplified mutual fund investing strategy that suggests investing ₹10,000 per month for 10 years in a fund that delivers 12% annual returns, which can grow to ₹20+ lakhs—and if left untouched for another 10 years, it can compound to over ₹60 lakhs. It highlights the power of SIP + compounding + time.

📊 Breaking Down the 10-7-10 Rule

This rule is a wealth-building framework based on three key numbers:

🔟 Invest ₹10,000 per month

This is the suggested SIP amount. You can scale it up or down based on your income and goals.

7️⃣ Do it for 7–10 years

Stay invested consistently for at least 7–10 years. This allows your investments to benefit from market cycles, rupee cost averaging, and compounding.

🔟 Then let it grow for another 10 years

After the initial investment period, stop investing but don’t withdraw. Let the corpus grow untouched for another 10 years. This is where compounding accelerates.

💡 Example: How It Works

Let’s assume:

SIP: ₹10,000/month

Duration: 10 years

Expected return: 12% CAGR

After 10 years:

Invested: ₹12 lakhs

Corpus: ~₹23.2 lakhs

If left untouched for another 10 years (no new investment):

Final corpus: ~₹72.8 lakhs

That’s the power of compounding—your money works harder than you do in the second decade.

🎯 Why This Rule Works

Encourages long-term investing

Minimizes market timing stress

Maximizes compounding

Simplifies goal planning (e.g., retirement, education, home)

It’s especially useful for young professionals who can commit to a decade of disciplined investing and then let time do the rest.

⚠️ Things to Keep in Mind

The rule assumes 12% annual returns, which is typical for equity mutual funds but not guaranteed.

It works best with diversified equity funds or index funds.

You must stay invested and avoid panic-selling during market dips.

Use step-up SIPs to increase contributions as your income grows.

Final Thoughts

💡 Invest Early. Retire Wealthy. The difference of just a few years can change your retirement corpus by crores! 👉 Start at 25 → ₹18 Cr by 65 👉 Start at 30 → ₹14 Cr 👉 Start at 35 → ₹9 Cr

🌱 Small investments today = Big wealth tomorrow!

Watch how SIP grows over time and benefits from the Power of Compounding. Start early, stay invested, and watch your money work for you! 🚀📊

📺 Watch Now: https://youtu.be/XLoAP_0UooA

Power of Compounding - Longer The Your SIP Tenure Higher the Wealth Creation in Your Portfolio