18X15X10 Formula: How you can build over Rs 1 crore corpus for your child by their 18th birthday; see examples
Investment Planning for Child Education: In the 18X15X10 strategy, 18 denotes the number of years, 15 is the expected annualised returns for 18 years, and 10 signifies the monthly investment for the duration.
Investment Planning for Child Education/Career: When a child is born into a family, parents have high dreams for the newborn. They want their child to excel higher than them, so parents want better facilities and better education for the child than they themselves got in their childhood. But better facilities and modern education are costly. Specially when the child finishes their schooling and moves to undergraduate courses and later goes for higher education, parents most likely need more money to meet expenses.
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18X15X10 investment strategy
However, parents can solve their money-related requirement with investing. If they start investing from the time their child is born and continue it for years, they can build over Rs 1 crore corpus for their child. This corpus can help the child get a good level of education and achieve higher things in life.
18X15X10 investment strategy
However, parents can solve their money-related requirement with investing. If they start investing from the time their child is born and continue it for years, they can build over Rs 1 crore corpus for their child. This corpus can help the child get a good level of education and achieve higher things in life.
18X15X10 investment strategy
One of the strategies to build over Rs 1 crore corpus for your child by the time they turn 18 is the 18X15X10. In this write-up, know what it is and how you can build a large corpus for your child starting with Rs 10,000 monthly investment.
What is the 18X15X10 strategy?
In the 18X15X10 strategy, 18 denotes the number of years, 15 is the expected annualised returns for 18 years, and 10 signifies the monthly investment for the duration.
What can be the investment tool?
Any investment where one can get 15 per cent annualised returns. It can also be mutual fund investment through a systematic investment plan (SIP). Here, one can make a single SIP or in multiple SIPs. The target should be to get 15 per cent annualised returns in 18 years.
How does the 18X15X10 strategy work?
In the 18X15X10 strategy, if one makes a Rs 10,000 monthly SIP for 18 years and gets 15 per cent annualised returns on that, they can build over Rs 1 crore corpus.
18X15X10 Strategy: What will be investment in 18 years?
At Rs 10,000 a month, the total investment in 18 years will be Rs 21,60,000.
18X15X10 Strategy: What will be estimated long term capital gains?
At 15 per cent annualised returns, expected long term capital gains on Rs 21,60,000 investment will be Rs 88,82,553.
18X15X10 Strategy: What will be estimated total value of investments?
The expected amount after 18 years will be Rs 1,10,42,553.
How can you use it?
The estimated amount of Rs 1,0,42,553 can be used in the child's education or anything that can help them in their career. Since inflation will also rise in 18 years, the better strategy can be to increase the investment amount and build a larger corpus than building a Rs 10,000 monthly SIP investment.
Disclaimer
(The article is for education purpose only. This is not investment advice. Do your own due diligence or consult an editor before investing)