Banking Mantra

Why Start SIP Early? Key Benefits of Investing Early Through SIP

09 Jul 2026

Back to all Infographics


Why Start SIP Early

Key Benefits of Starting SIP Early

1. Rupee Cost Averaging

  • Helps cushion the effect of market ups and downs.

2. Power of Compounding

  • Your returns start earning their own returns.

3. Cultivates Financial Discipline

  • Small, consistent steps build a bigger future.

4. Pursue Your Bigger Goals

  • Be it a dream home, travel, or retirement.

5. Path to Financial Freedom

  • Live life entirely on your own terms.

SIP Investment Examples

Example 1 – Varun

  • Age: 25
  • Salary: ₹45,000
  • Monthly SIP: ₹10,000
  • Investment Period: 25 Years
  • Retirement Value (Same SIP): ₹1.90 Crore
  • SIP Step-up Strategy: 20% annual step-up for the first 25 years
  • Retirement Value (Step-up SIP): ₹13.24 Crore

Example 2 – Asha

  • Age: 43
  • Salary: ₹2,00,000
  • Monthly SIP: ₹1,00,000
  • Investment Period: 7 Years
  • Retirement Value (Same SIP): ₹1.32 Crore
  • SIP Step-up Strategy: 5% annual step-up for 7 years
  • Retirement Value (Step-up SIP): ₹1.50 Crore

Example 3 – Mohit

  • Age: 30
  • Salary: ₹90,000
  • Monthly SIP: ₹25,000
  • Investment Period: 20 Years
  • Retirement Value (Same SIP): ₹2.50 Crore
  • SIP Step-up Strategy: 10% annual step-up for the first 20 years
  • Retirement Value (Step-up SIP): ₹4.97 Crore

Disclaimer

  • This SIP calculation is based on an assumed annual return of 12% for illustrative purposes only. It does not represent a guarantee or projection of actual future performance.
  • Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
  • The information provided is generic and for informational purposes only. Past performance is not an indicator of future returns. Please consult your financial advisor before making any investment decisions.
Read more

Popular Infographics

  • Disclaimer

    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

Importance of Women-Centric Health Insurance Plans

Importance of Key Replacement Add-On in Private Car Insurance

Add this website to home screen

Are you Bank of Baroda Customer?

Yes No

Request Call Back

PM-Surya Ghar Yojana -Standalone

X
We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.