Starting your investment journey early always gives you an edge because that’s when the real magic of compounding kicks in. As experts often say, the most important step in investing is to start, and the second is to give your money enough time to grow. Even a small monthly SIP can turn into a sizeable retirement corpus if you stay consistent. A 2025 report by FundsIndia Wealth Conversations shows that if you invest regularly through SIPs and earn around 12% annual returns, it is possible to build a fund of Rs 10 crore by the time you retire.
The Secret: Start early, invest less
The secret is simple: the earlier you start, the less you need to invest. If you start at 25, a monthly SIP of just Rs 15,396 is enough. But starting at 40 would require more than Rs 1 lakh per month to achieve the same goal. The report highlights a key truth: time is your most powerful tool in wealth creation. Even a delay of five years can increase your SIP amount multiple times.
Lump sum investments also benefit from early planning
The same applies to lump sum investments. If you invest Rs 1 lakh at 20, it can grow to about Rs 93 lakh by the age of 60. If you invest the same amount at 40, it will only grow to Rs 9 lakh. The message is clear: money needs time to grow. The earlier you start retirement planning, the bigger the benefit. Small, consistent savings today can become a large retirement fund over time.
Sip Calculator: How much to invest at different ages
At 25: Monthly SIP Rs 15,396, duration 35 years, value after 35 years Rs 10 crore
At 30: Monthly SIP Rs 28,329, duration 30 years, value after 30 years Rs 10 crore
At 35: Monthly SIP Rs 52,697, duration 25 years, value after 25 years Rs 10 crore
At 40: Monthly SIP Rs 1,00,085, duration 20 years, value after 20 years Rs 10 crore
This shows how starting early significantly reduces the monthly amount you need to invest to reach the same retirement goal.
Result: The advantage of starting early
If you start SIPs at 25, a monthly investment of around Rs 15,000 is enough to build Rs 10 crore by 60. Start at 30, and you need Rs 28,000 per month. Start at 35, you need Rs 52,000 per month, and at 40, around Rs 1 lakh per month. Early investors clearly benefit the most.
100x returns with time on your side
According to FundsIndia Research, if you make a lump sum investment of Rs 1 lakh at 20 and earn 12% annual returns, it can grow to Rs 93 lakh by 60. At 25, it grows to Rs 53 lakh; at 30, Rs 29 lakh; and at 40, only Rs 9 lakh. The later you start, the smaller the benefit. Starting early always makes your investments more effective.
Disclaimer:
This article is for informational purposes only and is not investment advice. Mutual fund investments are subject to market risks. Please consult your financial advisor before making any investment decisions.
Note: This content has been translated using AI. It has also been reviewed by FE Editors for accuracy.
