The Power of Compounding Over Time
This is the #1 reason why SIPs have the potential to make you wealthy in the long run.
What Is Compounding?
Compounding means earning returns on your returns. When you invest regularly through SIPs, each contribution starts to earn returns, and those returns in turn generate more earnings.
Over time, this creates a snowball effect — the longer you stay invested, the faster your wealth grows.
Example:
Let’s say you invest ₹5,000/month for 20 years in an equity mutual fund with an average return of 12% per annum:
- Total Invested: ₹12,00,000
- Wealth Created: ₹49,94,000+
- Growth: 4x your capital — mostly from compounding, not just your contributions!
That’s the magic of compounding + consistency.
How EzyMoneyDeals Helps You Maximize SIP Wealth
| EzyMoneyDeals Feature | How It Boosts Your Compounding Power |
| Goal-based SIPs | Align investments with long-term goals like retirement or child’s education |
| Automated Reminders | Never miss a SIP — consistency is key to compounding |
| Growth Projections | Shows how your SIP can grow over 5, 10, 20+ years |
| SIP Booster / Top-Ups | Invest more when you can to accelerate compounding |
| Fund Recommendations | Choose high-quality, long-term performing funds |
| Zero Commission Plans | Direct mutual fund options = higher long-term returns |
| Expert Support | Help you stay committed during market dips |
Key Takeaway:
SIP + Time = Wealth.
The longer you stay invested and the more consistent you are, the more compounding works in your favor. That’s how SIPs can make you rich.
