Power of Compounding: How much corpus can Rs 10,000 monthly SIP generate in 20, 30, and 40 years
Early investment plays a crucial role in building a large retirement corpus. As an investor, if you start investing a small amount monthly and continue it for a long duration, there is a high chance that your corpus can be larger than someone starting with a large amount for a short duration.
Who does not like their money to grow? Everyone does, but their process might differ. Some may want their money to grow quickly, while others plan for it to grow in a systematic way. It may take time to build wealth, and the power of compounding plays a key role in it. Thus, let’s understand how much corpus investors can create with Rs 10,000 monthly SIP in 20 years, 30 years, and 40 years.
Photos Source: Pixabay/Representational
Power of Compounding
The power of compounding is a process to generate earnings not only on the principal amount but also on the accumulated interest earned over time. To maximise the power of compounding, it's important to invest for the long term. The longer your money is invested, the more time it gets to compound, and the greater the growth potential.