This is the question that makes people finally start investing. The number feels too good to be true, so let's show you the actual maths — no hype.
| Annual return | You invest | Final value (20 yrs) | Wealth gained |
|---|---|---|---|
| 10% | ₹24,00,000 | ≈ ₹76,00,000 | ₹52 lakh |
| 12% | ₹24,00,000 | ≈ ₹1,00,00,000 | ₹76 lakh |
| 15% | ₹24,00,000 | ≈ ₹1,52,00,000 | ₹1.28 crore |
Look at the "wealth gained" column. At 12%, you put in ₹24 lakh and the market hands you ₹76 lakh on top. That gap is compounding.
Compounding is back-loaded. In a 20-year ₹10,000 SIP at 12%, you cross your first ₹25 lakh around year 12 — but the jump from ₹50 lakh to ₹1 crore happens in just the final ~5 years. The snowball gets enormous near the end.
This is exactly why people who stop early never see the magic. They quit during the slow, boring middle and miss the explosive finish.
A common trap: "I'll start when I can afford ₹25,000." But time beats amount. A ₹10,000 SIP started today usually beats a ₹20,000 SIP started 7 years from now — because those 7 early years compound the longest.
The lesson: the best SIP is the one you start today, not the bigger one you keep postponing.
These returns aren't guaranteed. Equity markets are volatile year to year — some years are negative. The 10-12% figures are long-term historical averages for Indian equity funds over 15+ years. Plan conservatively, stay invested through the dips, and let time do the work.