15x15x15 Formula: How your Rs 15,000 SIP investment may help you build over Rs 1 crore corpus; see calculations

SIP Mutual Funds: 15x15x15 formula

One effective strategy for wealth accumulation in SIP mutual funds is the 15x15x15 formula. This principle suggests that by consistently investing over 15 years, you can potentially accumulate over Rs 1 crore, becoming a crorepati. Let’s break down how this formula works.

Understanding the 15x15x15 SIP Formula

The 15x15x15 formula is simple yet powerful:

- First "15": Invest Rs 15,000 monthly.
- Second "15": Aim for an annualized return of 15%.
- Third "15": Maintain this investment for 15 years.

Total Investment Calculation

If you adhere to the 15x15x15 formula, investing Rs 15,000 each month for 15 years results in a total investment of Rs 27,00,000.

Projected Returns with the 15x15x15 Formula | 1. Expected Annualized Return

Assuming an average return of 15 per cent, your investment will grow significantly over time. After 15 years, you can expect to earn approximately Rs 74,52,946 in long-term capital gains.

2. Final Corpus Calculation

By combining your initial investment with the long-term capital gains, your total corpus at the end of 15 years is estimated to be Rs 1,01,52,946.

Becoming a Crorepati with SIP

By following the 15x15x15 formula, you can accumulate Rs 1.01 crore and achieve crorepati status in just 15 years.

Key Benefits of SIP

SIP investments offer several advantages, primarily due to the power of compounding:

Growth Potential

With an average annual return of 15%, SIPs provide significant growth potential, often outperforming traditional investment options. The rupee cost averaging feature helps stabilize expenses, even during market fluctuations.

Flexibility

SIPs allow you to choose an investment amount and frequency that suits your financial goals—be it monthly, quarterly, or semi-annually.

Control Over Investments

You have the freedom to pause, withdraw, or increase your SIP investments based on your financial needs.