SIP Returns: When Does Your Investment Start Working in Your Favor?

• Systematic Investment Plans (SIPs) are for wealth building, regular investment, and discipline, but the experience isn't always smooth.
• A long-term analysis of Nifty 50 SIP performance reveals that investment experience changes significantly with time.
• Short-term SIPs (1-3 years) can yield volatile, even negative, returns due to market cycles and timing risk.
• As SIP holding periods extend to 5-7 years, downside risk diminishes, and positive returns become more consistent.
• Beyond 7 years, negative SIP outcomes largely disappear, with double-digit annualized returns becoming common due to compounding and market recovery.