I still remember the first time I set up an SIP. It was just ₹3,000 a month from my modest salary, and at the time it felt almost trivial. But I kept at it, month after month, even when the markets were down. Ten years later, that “trivial” habit had grown into a portfolio that surprised even me and it was not luck. It was compounding quietly doing its work.
Warren Buffett often says that his fortune is nothing but the result of time, discipline, and compound interest. Over 99% of his net worth came after the age of 50 because the snowball kept rolling year after year. That lesson matters deeply in India today. An SIP of ₹10,000 per month in a good equity mutual fund has historically doubled to around ₹25 lakh over a decade, thanks to annualised returns of about 12 to 14%. And if someone had simply invested in the Sensex in 1979 and held on, ₹1 lakh would have turned into over ₹8 crore by 2024.
If Buffett were living here, I believe he would ignore the frenzy of daily stock tips and short-term trades. He would quietly set up SIPs, let compounding do its invisible work, and trust time more than timing. Because in the end, wealth is not about catching the next big wave as it is about staying in the water long enough for the tide to carry you forward.
Why Buffett would love SIPs in India
Buffett has always said that investing is not about brilliance, it is about temperament. The biggest challenge is not picking the right stock, it is controlling your own emotions. That is exactly why SIPs work so well in India. They remove the need to make decisions every month. Once you commit, the money gets invested whether the market is soaring or crashing.
When I looked at my own SIP record during volatile years like 2020, it was clear how this helped. In March 2020, when fear was everywhere, my SIP bought more units because prices had fallen. When the market recovered a year later, those very units delivered outsized gains. This is the essence of rupee-cost averaging. By investing a fixed sum every month, you automatically buy more when prices are low and fewer when prices are high. Over time, this smooths out volatility and builds wealth steadily.
The numbers prove it. Data shows that Indian equity mutual funds have delivered 12 to15% annualised returns over the past decade. Even after accounting for market crashes, disciplined SIP investors came out far ahead of those who tried to time the market. SEBI data also shows that in FY24, average monthly SIP contributions in India crossed ₹20,000 crore, with over 8 crore active SIP accounts. That is not a fad as it is a quiet revolution in how Indians are building wealth.
For Buffett, this would feel familiar. He always talks about the power of consistency. An SIP is exactly that – a consistent act of faith in the future of businesses, markets, and the economy. It takes away the drama and leaves you with what really matters: time in the market and the compounding that follows.
The snowball effect of compounding
Buffett often describes wealth as a snowball rolling down a long hill. At first, it looks small and slow, but as it keeps rolling, it picks up more snow, grows larger, and gathers unstoppable momentum. That is exactly how compounding works, and SIPs are the perfect way to set that snowball in motion in India.
When I began with my ₹3,000 SIP, the first year felt underwhelming as my account showed only a small gain. But after five years, I noticed something powerful. The returns themselves had started earning returns. My invested money was no longer working alone; the compounding had kicked in. It reminded me of Buffett’s own story: more than 99% of his wealth came after age 50, not because his strategy suddenly changed, but because the snowball had finally grown big enough to roll faster.
In India, the math is just as striking. A ₹10,000 monthly SIP in an equity fund earning 12% annually can grow to nearly ₹1 crore in 20 years. Stretch that to 30 years, and the same SIP can cross ₹3.5 crore. The secret is not in chasing higher returns, but in giving compounding enough time to do its quiet magic. Historical data backs this: the Sensex has delivered roughly 16% annualised returns since 1979, turning ₹1 lakh into over ₹8 crore by 2024. That is compounding at work across decades.
What Buffett teaches us is that compounding is not just a formula, it is a mindset. It requires patience, discipline, and the humility to let time do the heavy lifting. SIPs embody that mindset for Indian investors. Each small monthly contribution is like another roll of the snowball, pushing it further down the hill. The early years feel slow, but stick with it, and the later years can change your financial life entirely.
Staying calm when markets panic
If there is one thing Buffett repeats, it is that investing is not about intelligence but about temperament. “Be fearful when others are greedy, and greedy when others are fearful,” he says. That advice sounds simple, but in practice, it is hard. When the market crashes, the instinct is to stop investing or even pull money out. That is exactly when most people lose.
My own test came in 2020 during the pandemic crash. The news was grim, the Sensex had fallen by almost 40%, and every headline screamed uncertainty. Many friends stopped their SIPs, thinking they would restart once “things looked better.” I decided to let mine continue. It was not easy to watch the portfolio in red, but I trusted the process. Those months of fear turned out to be my best investments. The SIP bought more units at lower prices, and when the market rebounded, those units multiplied my gains.
History shows this pattern clearly. During every big fall – the 2008 financial crisis, the 2013 taper tantrum, the 2016 demonetisation shock, and the 2020 COVID crash as investors who stayed invested through SIPs ended up with stronger long-term returns than those who tried to time their exits. Data from AMFI shows that SIP investors who held through the 2008 crisis and continued for 10 years still earned double-digit annual returns by 2018, despite the volatility in between.
This is why SIPs fit Buffett’s philosophy so well. They remove the need to make emotional decisions in panic. You do not have to decide when to buy or sell as the SIP keeps investing for you, through fear and euphoria. In Buffett’s words, the market is designed to transfer wealth from the impatient to the patient. In India, SIPs make it easier to be that patient investor, letting discipline win over fear.
Thinking in decades, not days
Buffett often says his favorite holding period is “forever.” What he means is that true wealth is built by thinking in decades, not in days or months. This long-term vision is what separates an investor from a speculator. And for an Indian investor, SIPs are the clearest way to bring that vision to life.
When I started my SIP, I was not thinking about making money in a year or two. I was thinking about my daughter’s education, my retirement, and a future where I did not have to worry about every market headline. That is why SIPs felt natural and they were not about quick wins, but about building something for the long haul.
The numbers prove that this horizon matters. A ₹10,000 monthly SIP in equity funds has historically grown to about ₹1 crore in 20 years and ₹3.5 crore in 30 years, assuming 12% annual returns. The biggest driver of that growth is not the return percentage but the time spent invested. In fact, Indian data shows that SIPs held for more than 15 years have almost never delivered negative returns, regardless of when you started them.
This is exactly how Buffett built Berkshire Hathaway. From 1965 to 2024, it compounded at nearly 20% annually, turning $1,000 into over $43 million. Not because Buffett was chasing every trend, but because he stayed invested in businesses for decades. For Indian investors, SIPs are the closest equivalent to that philosophy, a structured, disciplined way to keep investing toward life goals without being distracted by short-term noise.
By thinking long term, SIPs free you from the anxiety of timing the market. They align perfectly with Buffett’s wisdom: let time, compounding, and consistency work quietly in your favor, and the results will take care of themselves.
A simple plea to fellow investors
Looking back, my SIP journey feels almost ordinary. Small amounts set aside every month, automated, quiet, nothing dramatic. Yet when I see the portfolio today, I realise how extraordinary that ordinariness can become over time. It reminds me of Buffett’s own line that investing is simple, but not easy. The challenge is not in understanding SIPs as the challenge is in staying with them long enough for compounding to show its power.
I have seen friends try to time the market, chase stock tips, or dabble in trading. Some did well for a while, most did not. What made the difference for me was not skill or luck, but sticking with the habit, month after month, through good times and bad. That is why I believe if Buffett lived in India, he would not spend his days chasing the next hot IPO or speculating in F&O. He would quietly run his SIPs, knowing that discipline and patience beat excitement every time.
So here is my plea: if you are an Indian saver wondering how to start, start small but start now. Do not wait for the perfect market level. Do not stop when the market falls. Plant the seed, water it every month, and let time do its work. A decade from now, you may look back with the same quiet gratitude I feel today that you chose consistency over chaos, patience over panic, and compounding over shortcuts.
Because in the end, wealth is not built in noise. It is built in silence, brick by brick, SIP by SIP.
Author note
Note: This article relies on data from fund reports, index history, and public disclosures. We have used our own assumptions for analysis and illustrations.
The purpose of this article is to share insights, data points, and thought-provoking perspectives on investing. It is not investment advice. If you wish to act on any investment idea, you are strongly advised to consult a qualified advisor. This article is strictly for educational purposes. The views expressed are personal and do not reflect those of my current or past employers.
Parth Parikh has over a decade of experience in finance and research. He currently heads growth and content strategy at Finsire, where he works on investor education initiatives and products like Loan Against Mutual Funds (LAMF) and financial data solutions for banks and fintechs.