Same SIP. Ten years apart.
One finish line at 60.
| The saver |
Pays from |
Years paying |
Total put in |
Value at 60 |
| Early . starts at 25 |
25 to 35 |
10 |
Rs 12L |
Rs 4.6cr |
| Late . starts at 35 |
35 to 60 |
25 |
Rs 30L |
Rs 1.9cr |
By 35 the early saver had paid in her last rupee. Her Rs 12 lakh had already grown to about Rs 23 lakh. Everything after that, all Rs 4.3 crore of it, was time doing the work. She never added another rupee.
Both savers assume the same 12 pct illustrative annual return, compounded monthly. The only thing that changed between them was the date they walked in. The late saver paid in 2.5 times the money and still finished Rs 2.7 crore behind.