long-term investing, power of compounding, staying invested, wealth creation, lump sum investment, equity returns, investment horizon, compounding benefits
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Moneycontrol13-02-2026, 09:02

Unlock Wealth: Why Staying Invested Longer Boosts Returns Dramatically

  • Investors often lose money by not staying invested long enough, missing out on the power of compounding.
  • A Rs 5 lakh lump sum invested for 10 years at 12% annual return grows to Rs 15.5 lakh; extending for just 5 more years boosts it to Rs 27.36 lakh.
  • The significant growth comes purely from compounding, where earlier gains generate their own returns, not from fresh money or increased risk.
  • Even smaller investments, like Rs 1 lakh, show substantial growth over longer periods, proving time can compensate for initial capital size.
  • The key to building serious wealth is extending the investment holding period beyond initial goals, turning decent outcomes into meaningful riches.

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