Compounding means returns earned on an investment begin to earn returns themselves. A Systematic Investment Plan (SIP) invests a fixed amount at regular intervals, so each instalment gets its own compounding runway.
The longer the horizon, the larger the share of the final value that comes from growth rather than contributions. This is why starting early and staying consistent usually matter more than trying to time the market.
Use our SIP Calculator to see an illustrative projection. Mutual fund investments are subject to market risks; returns are not guaranteed.
Illustrative only. This article is for education only and is not investment advice.