Summary of this article
This Navratri, investors can start building long-term wealth by beginning a mutual fund SIP. SIPs allow you to invest small amounts regularly, and the power of compounding helps your money grow significantly over time. Historical data shows Indian equities, including the Sensex, have delivered strong long-term returns despite short-term market volatility. By staying disciplined, investing consistently, and increasing contributions over time, SIPs can turn modest investments into substantial wealth.
Navratri is a time when people like to begin something new. Some buy gold, which has delivered over 12 per cent compounded annual growth rate (CAGR) over the last 10 years, some make big purchases, and some start new work. This Navratri, you can also begin your journey of wealth creation by starting a mutual fund SIP. A Systematic Investment Plan, or SIP, is one of the easiest ways to invest in mutual funds. You don’t need a lump sum. You can begin with just a small amount every month.
The real benefit of SIPs comes from compounding. Compounding means your money earns returns, and those returns again start earning. For example, if you invest Rs 5,000 every month through SIPs and earn an average return of 12 per cent a year, in 15 years your total investment will be Rs 9 lakh. But the value can grow to nearly Rs 25 lakh. Out of this, around Rs 16 lakh comes purely from compounding.
If you extend the horizon, the power of compounding becomes even clearer. A SIP of Rs 5,000 per month for 25 years at 12 per cent return can grow to nearly Rs 95 lakh, against an investment of just Rs 15 lakh. That’s more than six times the invested capital.
Indian equities have consistently created wealth for patient investors. The Sensex, which started at a base of 100 in 1979, has climbed to trade above 80,000 in 2025. This shows the benchmark index grew at a compounded annual growth rate of 15.60 per cent over the past 46 years, comfortably beating returns provided by Fixed Deposits (FDs), which average around 6-7 per cent per year.
Though the journey of equities has not been smooth, with markets seeing several bouts of high volatility in the past, particularly during the major crashes in 1992, 2000, 2008, and 2020, history shows that markets typically bounce back after every fall and reward those who remain invested for the long term.
For instance, after the 2008 global financial crisis, when the Sensex fell nearly 60 per cent, it regained all losses within 18 months. Even during the recent 2020 Covid crash, the Sensex crashed nearly 30 per cent and recovered all the losses within the next eight months.
Navratri itself carries lessons of discipline and patience, and just as devotees follow rituals with devotion every day for nine days, SIPs also require regular investing through all kinds of market cycles. when investors continue their SIPs even during downturns, they not only stay consistent but also benefit from rupee cost averaging, because they buy more units when prices are low and, over time, this helps enhance long-term returns.
To maximise the benefits, it is advised to start early, stay consistent, and gradually increase SIP amounts as income grows.
(The article is for informational purposes only. Consult a professional and certified financial expert before investing.)
