Starting a ₹5,000 SIP? This Simple Math Shows How a Small Delay Can Cost You ₹11 Lakh in Just Two Years

In the world of investing, time is often more valuable than the amount of money you invest. A small, consistent contribution can grow into a massive fund—if you start early enough. For example, if someone begins a monthly SIP of just ₹5,000 at the age of 25 and continues till the age of 60, they can easily build a millionaire-level retirement corpus. But delaying the same SIP by even a few years can drastically reduce your final wealth.

This article explains, through real calculations and examples, how starting your SIP late—by 2, 5, or even 10 years—can shrink your retirement corpus by lakhs of rupees.

Why Timing Matters More Than the SIP Amount

According to an Outlook Money report citing a Kotak Mutual Fund study, three individuals were compared—each investing the same amount: ₹5,000 per month. The only difference was when they started.

• Investor A: Invested for 20 years
  Final Corpus: ₹49.95 lakh

• Investor B: Started 2 years late, invested for 18 years
  Final Corpus: ₹38.27 lakh
  Loss due to delay: ₹11 lakh

• Investor C: Started 5 years late, invested for 15 years
  Final Corpus: ₹25.22 lakh
  Loss due to delay: Over ₹13 lakh

Each of them invested the same monthly amount, but the earliest investor made more than double of what the last one did—all because of time.

This demonstrates the golden rule of investing: your time in the market is more powerful than timing the market.

Start Small, But Start Now

Today, SIPs have become incredibly easy to begin. Many mutual fund houses let you start with as little as ₹500, and some even allow ₹250 per month. With such low entry points, waiting for the “right time” makes no sense.

The sooner you begin—even with a tiny amount—the longer your money gets to compound. Over 20 to 30 years, this difference becomes enormous.

Why Step-Up SIPs Are a Game Changer

A Step-Up SIP (also called a Top-Up SIP) allows you to automatically increase your monthly investment every year. Most major fund houses like SBI, HDFC, Kotak, and Mirae Asset offer this feature.

For example:
If you start with ₹5,000 per month and increase it by 10% annually, your SIP will automatically rise to ₹5,500 next year, ₹6,000 the year after, and so on.

This strategy can multiply your wealth much faster than a fixed SIP.

Impact of Step-Up SIP: A Powerful Example

Let’s break it down with a practical illustration:

Scenario 1: Fixed SIP (No Increase)

• Start SIP: ₹6,000 per month

• Start age: 25

• Return: 12% annually

• Duration: 15 years

• Final Corpus: ₹28.55 lakh

Scenario 2: Step-Up SIP (10% Increase Every Year)

• Same starting amount and age

• Final Corpus after 15 years: Around ₹50 lakh

The difference? More than ₹21 lakh—just by adding a yearly increase.

Now look at the long-term impact:

Investing till Age 60 (35 years total)

• Without step-up: ₹3.30 crore

• With 10% annual step-up: ₹9.46 crore

Your corpus becomes three times larger, simply because you increased your SIP by a small percentage every year.

The Big Lesson: Don’t Delay, Even by a Day

Whether you are 25, 30, or even 35, the best time to start investing is today. Every year you delay reduces your compounding power and can cost you lakhs, even crores, over your lifetime.

Start early, start small, and step it up over the years—your future self will thank you.