Power of 10X20X15 SIP Formula: How you can build over Rs 1.5 crore corpus for your child by their 20th birthday — See Calculations
Power of 10X20X15 Formula: Every parent wants their child to enjoy a better life than their own, benefiting from modern facilities and education. However, rising inflation makes these aspirations seem expensive by the time the child turns 20. Yet, with disciplined and systematic investment planning, achieving this goal is possible. Let's know how:
SIP Investment
If you're looking to build a substantial financial corpus for your child, SIP (Systematic Investment Plan) investing could be your ideal solution.
10X20X15 Formula: Key to Becoming a Crorepati
The 10X20X15 formula can be your pathway to helping your child become a crorepati by age 20. Here’s how this formula works:
Understanding the 10X20X15 Formula: Mutual Fund Investments
The 10X20X15 formula focuses on starting mutual fund investments via SIP and maintaining them over a 20-year period.
How the 10X20X15 Formula Works
In this formula:
- "10" represents a monthly investment of Rs 10,000,
- "20" signifies the investment duration of 20 years, and
- "15" indicates the expected annualised return of 15%.
10X20X15 Investment Strategy
If you begin investing when your child is born and continue for 20 years, you can build a corpus of over Rs 1.5 crore. This amount can help your child attain a quality education and achieve great things in life. See calculations below -
10X20X15 Formula: Total Investment Calculations
Using this formula, if you start a monthly SIP of Rs 10,000 for 20 years, your total investment will amount to Rs 24,00,000.
10X20X15 Formula: Long-Term Capital Gains
Assuming an average return rate of 15 per cent, your investment is projected to yield approximately Rs 1,27,59,550 in long-term capital gains over this period.
10X20X15 Formula: Total Amount Received
By the end of 20 years, your total amount—combining your original investment with accrued returns—will be around Rs 1,51,59,550.
Become a Crorepati in 20 Years
By following the 10X20X15 formula, you can amass Rs 1.51 crore, allowing your child to become a crorepati by age 20.
Benefits of SIP: Provides flexibility
SIPs offer flexible investment options, allowing you to choose the investment amount and period that suits your needs, whether monthly, quarterly, or semi-annually.