Missing SIP for 3 Months Can Cost You Rs 2 Crore: Understand the Investment Principle

• Missing SIP EMIs for even 2-3 months, often due to expenses like festivals or weddings, is common but can have severe long-term consequences.
• Many investors underestimate the impact, thinking it only results in a loss of a few thousand rupees in interest.
• A Rs 20,000 SIP missed for just three months can lead to a loss of Rs 1.5 to 2 crore over a 30-year investment period due to lost compounding.
• If a Rs 20,000 SIP runs for 30 years at 12% annual return, it could yield Rs 7 crore; missing 3 months reduces it to Rs 5 crore.
• Missing even one EMI annually for 10 years (total Rs 2 lakh investment reduction) could decrease the 30-year corpus by Rs 70 lakh.

Why It Matters: Even short breaks in SIPs can lead to massive losses over the long term due to the power of compounding.