Invisible Wins: Why We Tend to Forget the Investments that Quietly Compound

Imagine two friends: one talks excitedly about a quick stock trade that doubled in a week. The other quietly continues an SIP that has grown steadily for five years. Whose story gets more attention? Most people might admire the dramatic profit, even if the long-term investor potentially ends up with comparatively higher growth over time.

This bias explains why we undervalue what are called “invisible wins”–the slow, relatively steady potential growth of money in the long term thanks to compounding that works quietly in the background.

Table of contents

• What are invisible wins?
• Why we tend to overlook them
• Real-world examples
• Why the flash steals the spotlight
• The investor takeaway: How to value invisible wins

What are invisible wins?

Invisible wins, in this context, are incremental changes that may not create excitement in the moment but can potentially build up over time. Think of SIPs in mutual funds, where small contributions may result in potential wealth-building over time. Because you may not be seeing an immediate spike, you may not pay attention to the rise.

But with the underlying principle of compounding at work, even relatively smaller gains, when reinvested, may potentially build wealth over the long-term.

These are termed as invisible wins: investments that quietly work for you while you may be focused elsewhere.

Also Read: What is the power of compounding in mutual funds?

Why we tend to overlook them

The reasons for this tendency may lie in long term investing psychology. Human brains tend to chase visible rewards. A sharp spike in stock price can provide instant gratification, like a burst of sugar. Compounding, on the other hand, tends to work slowly. Early gains may look small, and when progress isn’t dramatic, people may undervalue it.

Behavioural finance, the study of how emotions and cognitive biases can influence financial decisions, identifies this tendency as “present bias”. We tend to prefer immediate satisfaction over delayed rewards. That mutual funds, with their potential for relatively steady growth over time, may feel less rewarding than speculative trades, even though long-term numbers may frequently tell a different story.

Another reason invisible wins may slip under the radar is how people tend to interpret progress. An SIP that grows from Rs. 1,000 to Rs. 1,050* in the first month might feel trivial. Yet, the same 5% growth years later, on a larger base, might seem significant. Economists call this the “exponential growth illusion”—our brains tend to underestimate how small percentages may potentially stack up when compounded over time.

*Example for illustrative purposes only.

Real-world examples

• Systematic investment plans (SIPs): AMFI data has shown consistent and substantial growth in SIP assets under management in the last decade. There are also more and more investors adopting this disciplined investment approach.
• Fixed deposits: Though FD returns rarely make headlines, their reliability forms a safety net for millions.
• Retirement accounts: Contributing to provident funds or pension accounts may appear to be just a part of everyday life, but over many years, the system of compounding can help build a modest corpus.

Why the flash steals the spotlight

Psychologists note that visible wins may catch attention more easily. Social conversations are more likely to celebrate a 40% rally in a stock far more than a 12% annualised return on an SIP, even though the latter may be more sustainable in the long run (figures here are for illustrative purposes only). Media coverage may also tend to spotlight dramatic movements, reinforcing the bias. Visibility may also explain why investors tend to chase intraday trading headlines while overlooking the potential for long-term steady growth through compounding.

This imbalance of attention may make us forget the invisible growth happening in our own portfolios. Unless we consciously track them, we may underestimate the potential progress of disciplined investing.

The investor takeaway: How to value invisible wins

• Track visually: Use simple charts or dashboards to see your SIP or FD balances over time. Progress can look more motivating when plotted.
• Reframe growth: A steady 10% to 12% annualised return on SIPs may potentially double your money in around six to seven years through compounding.
• Celebrate milestones: Each year of consistent contributions is a win in itself. Recognising these invisible victories may help keep motivation alive.
• Focus on the horizon: Instead of comparing with a friend’s flashy gains, try to anchor your vision on financial goals––education, retirement, or security.

Also Read: The Rule Of 72: The Speed Of Compounding For Investors

Conclusion

In finance, not all victories announce themselves loudly. Some may grow silently, almost invisibly, until years later. By appreciating the role of SIPs, fixed deposits, and retirement accounts, you may begin to see that the quieter path may potentially build a stronger foundation.

At Bajaj Finserv AMC, we recognise that emotions are the cornerstone of investor behaviour – not just for investors but for investment professionals too. That’s why, behavioural finance is at the heart of our investment philosophy, InQuBe, which combines the Information Edge, Quantitative Edge and Behavioural Edge. By understanding, tracking and monitoring market sentiments and our own investment biases, we seek to make mindful and strategic investment decisions. Get the Behavioural edge by investing with Bajaj Finserv AMC. Read more about InQuBe here.

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