People who invest in India often have the habit of procrastination. “We can do it tomorrow, we can do it next week”—this is the mentality many of us share, and it’s understandable because we are largely a middle-class nation.
However, when it comes to investing in SIPs, this delay can cost much more than people realize. SIPs, by nature, are designed so you can invest small amounts regularly, usually in mutual funds. The key is consistency. Without it, problems arise.
1. You Lose the Power of Compounding
Albert Einstein once said that compounding is the eighth wonder of the world, and there’s a good reason for that.
Compounding works like a crop: a well-cared-for crop will yield a bountiful harvest, but if you neglect it, the results will suffer. SIPs function in the same way. With consistency and discipline, they can reward you greatly over time.
For example, suppose Mr. Govinda invests ₹5,000 per month in SIPs for 20 years. Assuming an annual return of 12%, he can accumulate around ₹50 lakhs.
But if he delays starting his SIP by just 5 years, his corpus drops drastically. He would end up with only about ₹22 lakhs.
2. The Perfect Time Trap
Some people, like Mr. Arvind, believe they should start SIPs only when the market falls. Then there’s Miss Maduri, who thinks she’ll begin once she has more savings. Both are making the same mistake.
The truth is, there is no such thing as a perfect time. Markets are unpredictable—they can go up or down at any moment. SIPs were designed to handle this very volatility. By investing regularly, you average out the highs and lows.
The longer you delay your SIPs, the more money you lose in the long run.
3. Lack of Discipline
SIP is not like a fixed deposit where you simply park money and expect it to grow over time. SIPs demand discipline from investors. And just like in a professional career, it’s not the one-time effort but the consistent effort that brings success. Those who stay disciplined are the ones truly rewarded, both in life and in investing.
4. You Won’t Achieve Your Long-Term Goals
Do you dream of buying a house, sending your child abroad for studies, or retiring to live the rest of your days like a king? If you keep delaying your SIPs, you’re saying goodbye to turning those dreams into reality.
- You can still make up for lost time by investing more later, but why put yourself in that position?
- Why lose first just to catch up later, when you could keep winning all along?
- Why not enjoy a much bigger reward at the end?
If you earn more than the average Indian, start by investing at least ₹5,000 a month. As your financial situation improves, increase that amount step by step. This way, you can look forward to a comfortable retirement.
Starting at 25 is far better than waiting until 35. If you delay, you may need to invest double—₹10,000 a month—to reach the same goal.
5. Inflation Eats Your Wealth
It’s fair to say that inflation eats away at wealth like a glutton. But here’s the catch: if you invest early, you can fight back and land a solid punch on inflation.
Delaying SIPs means you’ll have fewer years for your money to grow, and your investments may struggle to outpace rising costs. The sooner you start, the stronger your shield against inflation.
Final Thought
Delaying SIPs is like postponing your health check-up. You don’t see the harm immediately, but the long-term effects can be serious. The best time to start an SIP was yesterday. The second-best time is today. So contact us now and get started. Start small, but start now.