Power of 10X20X15 SIP Formula: How you can build over Rs 1.5 crore corpus for your child by their 20th birthday — See Calculations

If you're looking to build a substantial financial corpus for your child, SIP (Systematic Investment Plan) investing could be your ideal solution.

The 10X20X15 formula can be your pathway to helping your child become a crorepati by age 20. Here’s how this formula works:

The 10X20X15 formula focuses on starting mutual fund investments via SIP and maintaining them over a 20-year period.

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%.

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 -

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.

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.

By the end of 20 years, your total amount—combining your original investment with accrued returns—will be around Rs 1,51,59,550.

By following the 10X20X15 formula, you can amass Rs 1.51 crore, allowing your child to become a crorepati by age 20.

SIPs offer flexible investment options, allowing you to choose the investment amount and period that suits your needs, whether monthly, quarterly, or semi-annually.