For people investing in mutual funds through SIPs, the biggest challenge is not lack of knowledge — it’s sticking to a plan. Market ups and downs can make even long-term investors nervous.
To simplify the process, certified financial planner and personal finance expert Ritesh Sabharwal has shared a
He calls it the 10-7-10 rule.
“The point is to have discipline and expect reasonable returns,” , adding that successful investing is more about behaviour than guessing market moves.
The first part of the rule asks investors to make peace with volatility.
“Expect your investments to go down by 10% every year,” Sabharwal said.
He explained that temporary market fall is not an exception — it is normal. In fact, Indian markets have seen at least one 10% drop in 20 of the last 23 years. His message is clear: anyone investing for long-term wealth must build tolerance for two things — time and short-term turbulence.
“You should be able to hold onto your investments during this volatility,” he added.
The second number, 7, highlights the importance of patience.
“Keep investing your SIPs for over 7 years. Past market data shows that investments held for at least 7 years have always given positive returns,” he said.
Sabharwal stressed that compounding works best when investors give their money enough time to grow. Short-term investing limits growth, while long-term investing gives markets time to recover from downturns and deliver better overall returns.
The final 10 focusses on stepping up investments annually.
He explained this with an example: investing Rs 20,000 every month for 10 years at 12% returns could grow to roughly Rs 46 lakh. However, if the SIP amount is increased by 10 per cent every year, the same investment could grow to around Rs 67 lakh.
“Of course, you can do as per your own needs. Maybe you can’t step up 10%, so step up 5%.” he said, making it clear that the idea is not to stretch finances, but to increase the amount gradually, even if the jump is small.
According to Sabharwal, his rule is not about chasing the highest return. It is about building a habit that lasts through market cycles. Expecting occasional losses, staying invested long enough, and raising contributions in a planned way can work better than trying to time the markets.
“Invest as per your goals. Expect market volatility. Invest for the longer term. Step up your investments,” he said.
For SIP investors, the takeaway is simple — growing wealth does not require a perfect strategy, only a committed one. The 10-7-10 rule is a reminder that small, consistent actions, done over many years, often beat complex plans with no follow-through.