Ritesh Sabharwal CFP®

W.M.W #6: 10-7-1: What's the secret wealth formula?

Reading time: 4 minutes - July 26, 2025

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Hey Reader

I’ve seen relatives, friends and colleagues stick to the same SIP amount for years. They’re disciplined. They’re patient. But their money isn’t working as hard as it could. And no one tells them that.

Today, I want to show you a simple tweak—something you can literally set and forget—that could almost double your SIP returns without you even feeling the pinch.

Here’s what we’ll talk about:

• A simple 3-step rule to supercharge your SIPs
• Why market dips are your friend, not your enemy
• How small annual increases create big long-term wealth

Stick with me. This is worth it.

I wish I knew this when I started investing as I frequently changed funds, redeemed in less than 3 years and never realized the importance of how much I am investing.

So I was doing many things but the results were not that great, I thought I had cracked it but found out a lot later making money work for you is more about investing discipline then just which stocks to buy.

Here's the 10-7-1 Rule To Maximize Your SIP Returns (Even If The Market Crashes Tomorrow)

In order to grow wealth that actually beats inflation, you need to build in three things: resilience, time, and growth.

Here’s how the 10-7-1 rule makes that happen. Let's dive deeper below:

1. The ‘10’ - Love Market Corrections (Seriously)

Most people panic when markets drop. You’ll hear:

“Should I pause my SIP?”

“Should I exit?”

“Is this the right time?”

Here’s what history says:

In the last 23 years, Indian stock markets have seen 20 years with at least a 10% correction. That’s normal.

Since 2000, we've seen 10%+ drops almost every year

↳ 2008: -52% drop

↳ 2020: -38% crash

↳ 2022: -18% decline

See the graph below, the markets have fallen many times but the long term graph has pretty much been up.

The historical truth: the markets recovered every single time.

People who continued their SIPs through these falls ended up with higher long-term returns. Why? Because they bought more units when the NAV was lower.

2. The ‘7’ - Invest For At Least 7 Years (Non-Negotiable)

I get it. We live in the age of instant everything—10-minute deliveries, same-day shipping, viral crypto millionaires. But wealth building doesn’t follow those rules.

Here’s what the data says:

If you stay invested for at least 7 years, especially in Large Cap, Flexi Cap, or Nifty 50 funds, you have a very high chance of seeing consistent positive returns.

Short-term? Anything can happen.

Long-term? History is firmly on your side. And we can only go by what we know.

Look at these real examples:

↳ 2008-2015: Sensex gave 168% returns

↳ 2011-2018: Nifty delivered 147% returns

↳ 2016-2023: Both indices nearly doubled

People always ask me when starting "How long is long term in investing"?

👉 Action: Before starting any SIP, make a mental note: “I’m in for 7 years minimum.” If you can’t commit to that, it’s not the right money for equities.

3. The ‘1’ - Step Up Every Year (It Changes Everything)

This is the real game-changer. And almost nobody talks about it.

Let me show you two real examples:

That’s ₹36 lakh or 72% more - just by increasing your monthly SIP by ₹1,000 in Year 2, ₹1,100 in Year 3, and so on.

This tiny annual step-up reflects the reality of life: your income grows, your expenses grow - why not your investments too?

Now honestly tell me don't you upgrade your phones, your TV, other gadgets, your wardrobe - come what may whether its higher priced due to inflation or not.

If you are stepping up your expenses all the time - then why can't you step up your investments?

The step-up not only beats inflation but also helps you reach bigger goals faster:

• That early retirement dream
• That international vacation fund
• That down payment on your dream home

👉 Action: If you haven’t set up a Step-Up SIP, log into your app today and activate it. Even a 5–10% annual bump will make a huge difference.

That’s it.

Here’s what you learned today:

• Market corrections (10%) happen often, and they’re actually good for long-term SIP investors
• Stay invested for at least 7 years to see the real magic of compounding
• Stepping up your SIPs annually can nearly double your wealth without you even noticing the extra outflow

Sneak Peek👇

Next week I will tell you about “How can you claim from 2 health policies?"

So, stay tuned!!

Connect with me on LinkedIn, I write every day to help you make smarter money decisions👇

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