5X15X25 SIP Strategy: Is it possible to create Rs 1,64,20,369 corpus with Rs 5,000 monthly SIP investment?
One can build a corpus of Rs 1.6 crore by investing just Rs 5,000 in a monthly systematic investment plan (SIP). But the question is how long will their investment take to grow to such an amount? Let’s find out.
With the 5x15x25 SIP formula, a mere Rs 5,000 monthly investment can grow to a Rs 1.6 crore corpus. This simple yet powerful strategy requires disciplined investing, long-term commitment, and compounding returns. It shows how starting even with a small amount can lead to big results gradually. If you are curious about how to create a large corpus with a small monthly investment, this formula shows how it’s possible. Let’s explore the 5x15x25 systematic investment plan (SIP) formula that can turn your small investments into a crore.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is power of compounding?
The power of compounding is a method to generate earnings not only on the principal amount but also on the accumulated earnings during the investment period.
Power of compounding in SIP
SIP and the power of compounding go hand in hand and investment in mutual fund schemes via SIP can work wonders. Through SIP, investors can invest a fixed amount at regular intervals such as daily, weekly, monthly, or yearly.
Benefits of compounding
Your savings can grow faster
Long-term growth
Reduces risk
Flexibility in SIP
SIP offers flexible investment options, allowing you to choose the investment amount and period.
How does 5x15x25 formula work?
The 5x15x25 formula means starting a mutual fund investment through SIP and continuing it for 25 years. In this formula, "5" represents a monthly SIP of Rs 5,000. "15" denotes the annualised SIP returns. Whereas "25" signifies the number of years that one needs to invest in SIP for 25 years.
5x15x25 SIP Formula: What will be your total investment?
Using this formula, if an individual starts a monthly SIP of Rs 5,000 and continues for 25 years, their estimated investment amount will be Rs 15,00,000.
5X15X25 SIP formula: What will be your capital gains?
With Rs 5,000 monthly SIP for 25 years of investment period. The estimated capital gains will be Rs 1,49,20,369.
5X15X25 formula: How many years will it take to build Rs 1.6 crore corpus
It will approximately take 25 years to build a corpus of Rs 1.6 crore. See calculations to know how it will work.
5x15x25 SIP Formula: Calculation conditions
Here, we will calculate the target corpus, capital gains, and investment amount on a 15 per cent annualised return.
5x15x25 SIP Formula: Calculation to create corpus Rs 1.6 crore corpus
Target corpus: 1.6 crore
Monthly Investment: Rs 5,000
Expected annualised return: 15 per cent
Time period: 25 years
The Estimated corpus will be Rs 1,64,20,369 in 25 years.