The profits you make on a mutual fund compound over time if you invest in it for a long time. However, if you put off your investing for a few years, you will lose money. The disparity between what you will accumulate and what you could have amassed had you started investing a few years earlier would expand due to the compounding impact.

Because the longer you stay invested, the more time your money has to compound, the compounding effect works its magic. Compounding’s strength is like a magnifying glass whose magnifying power increases exponentially with time. Even if you delay your investments, whether through a SIP or a lump-sum payment, and invest a more significant amount, you will not be able to catch up to someone who began investing five years before you. In the case of a SIP, he or she may invest half of what you do, but your investments will still be behind. Even if you make a one-time investment,

If you wait a few years, your wealth will be less than someone who invested in a lump sum a few years before you. Delaying your investing decision will cost you a lot of money.

Even if your investment amount is tiny, if you start investing in Mutual Funds early, you will likely accumulate more money over a few decades than if you start investing a more significant sum ten years later. It’s similar to the parable of the hare and the tortoise, in which making small, consistent investments early in life can help you attain your objective more comfortably than starting later, even if you’re ready to commit more.

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