Jul 30, 2026, 01:34:25 PM IST

When investors think about financial mistakes, they usually quantify them in rupees. A pause in systematic investment plans (SIPs), an occasional withdrawal from investments, or a missed savings target is often judged only by the amount involved. Here is how withdrawals impact your financial goals, as reported by ET Wealth.

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Small positive decisions—such as increasing SIPs when income rises, avoiding unnecessary withdrawals, and staying invested during market volatility—can help investors gain valuable years. Withdrawals from long-term investments can be equally damaging because they reduce the capital available for compounding.

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Consider an investor who aims to build a corpus of Rs 1 crore through a monthly SIP of Rs 20,000 and expects a return of 10% annually. If the SIP continues uninterrupted, the target corpus can be accumulated in approximately 198 months, or about 16 years and 6 months.

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Just as with SIP interruptions, the timing of the withdrawal determines the extent of the damage on investments. Withdrawals made in the early years of investing are significantly more damaging than those made later.
Every rupee withdrawn loses years of future compounding. The earlier the withdrawal, the longer the period over which that lost compounding could have worked. This is why financial planners often recommend maintaining a separate emergency fund instead of dipping into long-term investments.

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ETMarkets.com

A withdrawal of Rs 2 lakh after five years delays the goal by about 7 months. A withdrawal of Rs 3 lakh delays the goal by 10 months, and a withdrawal of Rs 5 lakh delays the goal by 17 months.

ETMarkets.com

A withdrawal of Rs 2 lakh after 10 years delays the goal by about 4 months. A withdrawal of Rs 3 lakh delays the goal by 6 months, and a withdrawal of Rs 5 lakh delays the goal by 10 months.

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