One time vs every year

What can you do with ₹100? Maybe buy a cup of coffee or a short ride in an auto. For many, ₹100 doesn’t feel like a change in the pocket. It’s the kind of money we spend without thinking, without planning. It slips out of our wallets and disappears in minutes. But what would be the value of ₹100 if invested? 

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In this article, we’ll walk through two simple scenarios—what happens if you invest ₹100 just once, and what happens if you invest ₹100 every year. 

Value of ₹100 when invested

To keep the numbers practical and close to real life, let’s assume you invest your money in a mix of equity and debt. That means:

• 85% of your money goes into equity (like stocks), which gives about 11% return per year
• 15% goes into debt (like fixed deposits or bonds), which gives about 6.5% return per year

When you combine these, the average return on your full investment comes to about 10.33% per year. This is called the nominal return. 

But nominal return is not real return. Inflation reduces the purchasing power of your money over a period of time. So we need to look at the return after adjusting for inflation. 

If we assume inflation is 5% per year, then the real return comes down to about 4.63% per year. (10.33%-5%)

In this article, you’ll see two sets of numbers:

• One showing how much your money grows in total (nominal)
• One showing the actual value of that money after inflation (real)

This helps you understand both how your wealth grows and how its purchasing power holds up over time.

Scenario 1: One-Time Investment of ₹100

Let’s say you invest ₹100 once and leave it untouched. Over the years, it grows through the power of compounding. Here’s how that growth looks, using a nominal annual return of 10.33%, adjusted for 5% inflation:

₹100 One-Time Investment

For example, investing ₹100 once and letting it grow for 30 years results in a real value of around ₹441—even after accounting for inflation. That’s over 4 times the original amount in terms of actual purchasing power.

In other words, despite inflation eroding value over time, the power of compounding still delivers strong real returns—multiplying your initial investment several times over.

Scenario 2: Saving ₹100 Every Year

Now imagine you invest ₹100 not just once, but every year

Table: ₹100 Annual Investment

Saving and investing ₹100 every year for 30 years results in a real corpus of about ₹4,052—more than 13 times the total amount you invested (₹3,000). That’s after adjusting for 5% inflation.

Even with inflation eating away value year after year, consistent investing still builds real wealth. It turns small annual savings into a powerful long-term asset.

One-Time vs Annual Investment

Here’s what we learn from this

1. Compounding Magnifies Over Time
   When you invest a sum of money over a period of time, your returns begin to earn returns. In the beginning, growth is slow. But by year 30, it accelerates. The difference between year 10 and year 30 doesn’t remain linear—it becomes exponential.
2. Consistency Beats Timing
   A lump-sum investment is good. But regular investing allows you to ride market ups and downs, smooth out risks, and unlock the full power of compounding.
3. Inflation Shouldn’t Be Ignored
   Your returns must outpace inflation. What truly matters is what your money can buy. If your returns don’t beat inflation, your real wealth shrinks—even as your account balance grows.
4. Time > Money
   Starting early is more powerful than starting big. Begin with ₹100 at age 20, and you’re ahead—even if someone else starts with ₹500 at 40. Time builds wealth faster than money alone.

The Final Word

Financial advisors have long emphasized that consistency and patience are the cornerstones of successful investing. The actual amount you invest may seem small, but what truly matters is sticking to the habit. Over time, these disciplined actions—no matter how modest—can lead to significant financial growth. Remember, it’s the principle of regular, patient investing that makes all the difference.