Unlocking the Power of SIP: From 15x15x15 to 15x5x3 Rule - 5 golden principles for long-term investment success

Power of Compounding for Your Financial Goals: Are you looking to buy a car, a house, or achieve any major financial milestone? Aligning these goals with mutual fund investments can fast-track your journey to financial success. Know the best investment strategies through systematic investment plans (SIPs) to build long-term wealth.

Ultimate SIP Strategies: 5 Essential Rules

Here are five powerful rules to enhance your investment approach: Rule 555, 15x5x3 SIP Rule, 18x15x12 Formula, 10x20x15 Formula, and the classic 15x15x15 Rule. These principles can optimise your financial planning and help you achieve your investment goals.

1. 15x15x15 Formula 

Understanding the 15x15x15 Formula: Here’s how the 15x15x15 formula of SIP works:
- First "15": Invest through SIPs for 15 years.
- Second "15": Contribute **Rs 15,000** monthly.
- Third "15": Expect an annualized return of 15%.

15x15x15 Formula: Full Calculations

For a monthly SIP of Rs 15,000 over 15 years, your total investment would be Rs 27,00,000. With a 15 per cent return, you could achieve approximately Rs 74,52,946 in long-term capital gains, resulting in a total of around Rs 1,01,52,946.

2. Triple 5 Formula for Retirement

The Triple 5 formula optimises retirement savings. Let's learn how it works:
- First 5: Retire 5 years earlier.
- Second 5: Increase your SIP by 5% annually.
- Third 5: By age 55, aim for a fund of Rs 5.28 crore.

Example of the 'Triple 5' Formula

If you start with a Rs 10,000 monthly SIP and increase it annually by 5 per cent, you would invest about Rs 79.73 lakhs over 30 years, potentially earning around Rs 4.48 crores in long-term capital gains for a total of approximately Rs 5.28 crores.

3. Understanding the 15x5x3 SIP Rule

Suppose you are investing Rs 10,000 monthly in SIP. Now, according to the 15x5x3 SIP rule:
- First "15": Invest Rs 10,000 monthly for 15 years.
- Second "5": Extend it for 5 years.
- Third "3": Further extend it for the next 3 years.

How much will you earn by depositing Rs 10k monthly for 15 years?

If you invest Rs 10,000 monthly at a 12 per cent return, your total investment of Rs 18,00,000 could yield approximately Rs 50,45,760 after 15 years. In which, you can expect to earn approximately Rs 32,45,760 in long-term capital gains.

4. 18x15x12 Formula for Your Child's Future

Start an SIP as soon as your child is born using the 18x15x12 formula:
- 18: Invest until your child turns 18.
- 15: Monthly SIP of Rs 15,000.
- 12: Aim for a 12% return.

18x15x12 SIP Formula: Calculation to create a corpus of over Rs 1 crore

Investing Rs 15,000 monthly for 18 years totals Rs 32,40,000. With 12 per cent returns, this could grow to Rs 1,14,81,589 by the time your child turns 18. In which, a total of Rs 82,41,589 will be received as long-term capital gain in 18 years.

5. 10x20x15 SIP Strategy

Finally, the 10x20x15 formula involves:
- 10: Start with a monthly SIP of Rs 10,000.
- 20: Invest for 20 years.
- 15: Aim for a 15% return.

10x20x15 SIP Strategy: Calculations

Over 20 years, your Rs 24,00,000 investment could grow to approximately Rs 1,51,59,550 in total, with substantial long-term gains of approximately Rs 1,27,59,550.