Extremely powerful. Increasing SIP by 10% annually means saving ~7x more in year 20 vs year 1. Combined with compounding, even a modest starting SIP of ₹10,000/month becomes ₹67,000 by year 20 with a 10% step-up.
What does a wealth multiplier of 5x mean?
A 5x multiplier means your corpus is 5 times the total money you invested. This is purely the power of compounding — your money generating returns on returns over time.
When does compounding really kick in?
The 'hockey stick' effect typically becomes visible after year 10–12. In the early years, returns are small because the base is small. As your corpus grows, the returns each year can exceed your annual savings.
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