Investing - Power of starting early

 

Twenty years ago, a father — who was a very conservative investor —began investing ₹10,000 every month into a Public Provident Fund (PPF) account in his child’s name. His primary goal was safety and guaranteed returns, along with the tax benefit under Section 80C. He stayed disciplined and consistent, never missing a month. Today, that decision has grown into a corpus of around ₹59.3 lakhs, assuming an average PPF interest rate of 8.5% per annum, compounded yearly.

Yes, you read that right—₹59.3 lakhs from just setting aside ₹10,000 every month for 20 years.

But here’s the kicker—if that same ₹10,000 per month had been invested in a tax-saving ELSS mutual fund instead, assuming an average return of 12.5% per annum, the corpus today would have been around ₹99.4 lakhs.

Now pause for a moment and ask yourself: “What if I had done this when I started earning?”

This simple yet powerful example shows how starting early, even with a modest amount, can create serious wealth over time. Let’s break down why this works so well.

Time is Your Best Friend in Investing

When you start early, your money gets more time to grow. The longer it stays invested, the more it earns—not just on your original investment, but also on the interest or returns earned. This is what we call compounding.

Think of it like planting a tree. In the early years, it grows slowly. But as time passes, the roots grow deeper, the trunk gets stronger, and the branches spread out. After 15–20 years, what started as a small sapling becomes a giant tree giving shade, fruits, and value. The same happens with your money if you give it enough time.

It's Not About How Much You Invest – It's About When You Start

Many people believe they need lakhs of rupees to start investing. That’s not true. It’s more important to start with whatever you can, as early as possible.

The Regret of Not Starting

Many people reach their 40s or 50s and say, “I wish I had started earlier.” You may have even said this to yourself at some point. The good news? You can start today. The earlier, the better—but it’s never too late.

If you have kids, start something small in their name. If you're just starting your career, commit to a monthly investment. If you’re in your 30s or 40s, don’t wait another day.

Final Thoughts

The father in our opening example didn’t do anything fancy. He didn’t chase stock tips or time the market. He just showed up every month and let time do the rest. And now, his child starts their adult life with nearly ₹60 lakhs in hand.

Imagine the possibilities—higher education, a down payment for a house, or even the foundation of a retirement plan.

All it took was consistency and an early start.

So, the next time you think investing is complicated or only for the rich, remember this story.

You don’t need to be wealthy to build wealth—you just need to start early.

 The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation. 

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