Compounding with early start!

Compounding accelerates wealth creation, and starting early gives you the time required to harness the power of compounding. Let’s see how. Suppose you are 25 and start investing ₹ 5,000 per month in a mutual fund through SIP, offering a return of 10% p.a. for 35 years. At 60, the value of your corpus will be approximately ₹1.90 crore. If you delay your plan and start investing at 30, the corpus drops to ₹1.13 crore. A delay of 5 years reduces it to ₹66.34 lakhs. Early financial planning and subsequent investments are essential to accumulate funds for long-term goals like retirement through compounding.