When most people think of investing, they picture wealth steadily compounding over a decade or two—leading to financial freedom and a comfortable lifestyle. But CA Abhishek Walia, Founder of Zactor Tech and a passionate advocate for personal finance, believes this long-term vision misses the true secret behind successful investing.
“Your first three years of investing will make or break your next ten,” Walia asserts. “And it has nothing to do with returns.”
While returns grab headlines and conversations, Walia argues it’s the early years of one’s investing journey that shape the mindset, discipline, and habits necessary for long-term wealth. Yet many new investors overlook this crucial period, assuming the real magic only happens far into the future.
This comes at a time when systematic investment plans (SIPs) are booming in India. April 2025 saw an all-time high SIP inflow of Rs 26,632 crore, according to the Association of Mutual Funds in India (AMFI). However, the data also revealed a worrying trend: the SIP stoppage ratio surged to a record level of 296 percent, indicating that far more SIP accounts were closed or matured—approximately 1.36 crore—than the 46 lakh new accounts that were opened.
The SIP stoppage ratio measures how many SIPs are discontinued or matured in a month relative to new accounts opened. Such a high ratio signals a behavioural issue that Walia believes lies at the heart of India’s investing journey: inconsistency.
Building habits
“In your first three years, the amounts you invest might seem small— Rs 1,000, Rs 5,000, or Rs 10,000 a month,” Walia explains. “But this phase isn’t about making lakhs. It’s about making discipline automatic.”
He stresses that skipping SIPs, panicking during market dips, or chasing trending stocks and funds are common mistakes for beginners. These habits, if unchecked, can derail future financial goals.
“If you can train yourself to avoid these mistakes early, your next ten years will be exponentially better,” Walia emphasizes. “Skipping SIPs or chasing hot stocks in your first three years can sabotage the discipline that’s crucial for long-term wealth.”
Compounding works
Walia also believes that the principle of compounding applies not only to money but also to behaviour.
“The earlier you build strong investing habits—like regular SIPs, a long-term mindset, and patience—the more ‘mental compounding’ you experience,” he says.
As income grows with salary hikes, bonuses, or business gains, disciplined investors find it easier to allocate larger sums. “You’ll already have the engine running—no friction, no overthinking,” Walia adds.
Investment personality
Walia points out another reason why the first three years are critical: they help investors discover and refine their financial personality.
“Are you a panic seller? A blind risk-taker? Or a disciplined, goal-based investor?” he asks. “Your first three years will reveal—and refine—your investor DNA.”
Ignoring this, he warns, often leads to mismatches between risk appetite and portfolio choices, causing bigger problems when the stakes rise.
Start small, start right
Summing up his advice, Walia emphasizes that investing success doesn’t require huge amounts of money in the beginning—it requires the right habits.
“In short,” he says, “the first three years are about habits, mindset, and discipline. The next ten years are about scale, wealth, and impact.”
He urges beginners not to wait for the “perfect time” to invest. “Start small. Start now. But start right,” he advises.
As India’s middle class increasingly turns to systematic investments and the equity markets, Walia’s message is a timely reminder that wealth is built not only on returns—but on consistency, patience, and self-awareness.