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The Power of Compounding — Why Starting Early Matters

📅 06 Aug 2026 ⏱️ 4 min read ✍️ Bhaskar G.

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What is Compounding?

Earning returns on your returns — the snowball effect of investing.

Example

Start at 25: ₹5,000/month for 10 years, then stop. By 60: ~₹2.8 crore (at 12%).

Start at 35: ₹5,000/month for 25 years. By 60: ~₹94 lakh (at 12%).

Person A invested ₹6L total, Person B invested ₹15L. Yet A has 3x more. That is compounding.

Try our SIP Calculator with your numbers.

Hypothetical returns for illustration. Not guaranteed.

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