What is 15X15X15 mutual fund strategy? How your Rs 15K investment may help you build Rs 1 cr corpus

Mutual Fund SIP Calculator: Mutual fund investment through a systematic investment plan (SIP) is an effective way of investing for people who don't have a large lump sum amount but want to create a sizeable corpus in a few years. While SIP investment helps with cost averaging by purchasing net asset value (NAV) in different proportions at different investment intervals, it also provides the benefit of compound returns. If one is consistent in their investments, they can create a huge corpus in the long run, even if their monthly SIP is small. The 15X15X15 formula is one such technique of investing in mutual funds. It may help you achieve a Rs 1 crore corpus in 15 years, even if you start investing at the age of 30. Know what the 15X15X15 formula is and how it may help you build over Rs 1 crore corpus in 15 years. 

What is 15X15X15 formula? How can it help you build over Rs 1 crore corpus?

As per this formula, if you invest Rs 15,000 a month in mutual funds through SIP for 15 years in a row and get a 15 per cent return on it, you can build over a Rs 1 crore corpus.

Also Read | Power of Rs 1K SIP: How Rs 1,000 SIP can help you get corpus of over Rs 35 lakh

E.g., according to the SIP calculator, if you invest Rs 15,000 every month through SIP for 15 years in succession, you will invest a total of Rs 27,00,000.

At a 15 per cent return, your estimated long-term capital gains will be Rs 74,52,946.

After 15 years, you will get a total of Rs 1,01,52,946.

Is a 15% return for 15 years possible?

The Nifty 50 index has increased by a CAGR of 14.6 per cent in the last 10 years.

Also Read | NPS vs mutual fund SIP: Which is a better investment plan for retirement? | Explained

Many of the prominent short-, mid- and small-cap equity funds have given returns of over 15 per cent in the last decade, so a 15 per cent return for 15 consecutive years is quite a possibility. 

What should my earnings be to invest Rs 15,000 a month

If your monthly income is Rs 80,000 or around, you can invest Rs 15,000 per month.

According to a prominent financial rule, 20 percent of the income should be saved and invested.

If your monthly income is Rs 80,000, then 20 per cent of it is Rs 16,000.

Here you have to invest Rs 15,000 a month, which you can do if you follow the investment rule.

If you start this investment at the age of 30, you can become a crorepati at the age of 45.

(Disclaimer: Investments in mutual funds are subject to market risks. Do your own research or consult your advisor before investing.)