First Rs 50 Lakh Takes Longest Time in SIP Investing

When you put a small amount of money into a mutual fund every month, it grows slowly at first because most of the money is just the amount you put in.

After a few years, the money that has already grown starts earning more money, so the growth speeds up.

For example, if you invest Rs 30,000 a month and the fund earns about 12% a year, it takes about 8 years to reach Rs 50 lakh.

After that, each next Rs 50 lakh takes less time: a little over 4 years, then less than 3 years, then about 2 years, and so on.

If you keep investing for 30, 40, or 50 years, the amount can grow to many crores, even though you only added a few crores of your own money.

The main lesson is that staying invested for a long time is more important than trying to pick the best fund or time the market.