10X20X15 SIP Formula: How you can build Rs 1.5 crore corpus with Rs 10,000 monthly investment using this formula
10X20X15 SIP Formula: For individuals looking to accumulate a significant corpus through consistent and disciplined investments, SIP can be a great option. With SIP, you can invest monthly, quarterly, biannually, or annually, rather than making a lump sum investment. Additionally, it allows you to take advantage of the power of compounding, with the potential for market growth over time.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
Opt for the 10X20X15 Formula
If you are considering investing in mutual funds and seeking guidance then the 10X20X15 formula can be beneficial for you. By following this formula, you could generate approximately Rs 1.5 crore in 20 years. Let’s break down how it works.
Breaking Down 10X20X15 Formula: What do the numbers mean?
Let’s decode the 10X20X15 formula:
- 10: Represents a monthly investment of Rs 10,000.
- 20: Indicates the duration of 20 years for which the SIP is maintained.
- 15: Refers to the expected annualized return of 15% from your SIP investments.
10X20X15 SIP Formula: Calculating the total investment over 20 years
By following this strategy, if you contribute Rs 10,000 monthly for 20 years, your total investment will amount to Rs 24,00,000.
10X20X15 SIP Formula: Calculating estimated capital gains at 15% annualised return
With an average return rate of 15 per cent, your estimated capital gain will be around Rs 1,27,59,550 over 20 years, as per the calculation.
10X20X15 SIP Formula: Calculating the total amount received
After 20 years, your investment could grow to approximately Rs 1,51,59,550. This includes both the estimated capital gain and the total amount invested.
10X20X15 SIP Formula: Full Calculation
Investing in an equity mutual fund (Rs 10,000 monthly SIP, 15% return, investing for 20 years):
- Total Investment: Rs 24,00,000
- Capital Gains: Rs 1,27,59,550
- Total Value: Rs 1,51,59,550
SIP Returns: What you need to know
It’s important to remember that SIP is a market-linked scheme, so returns are not guaranteed. The 15 per cent return mentioned above is an estimate, and actual returns may vary depending on market conditions.
Power of Compounding in SIP Investments
The true advantage of SIP lies in the power of compounding. As your investment grows over time, the returns generated each year also begin generating returns, accelerating the growth of your corpus.
Conclusion: Why you should consider SIP for long-term goals
If you're looking to build a substantial corpus for your financial goals, starting a SIP with a disciplined approach can be a very effective strategy. With consistent contributions and the potential for high returns, you could reach your financial target in two decades.
SIP Formula: Other options
Apart from the 10X20X15 formula, there are other SIP formulas that can help you generate a substantial corpus over different time periods and return rates. Examples include the 15X20X12 formula, 12-15-20 SIP, 5X15X25, 15X15X15, and more.