5x15x25 Formula: How this formula helps you to generate Rs 1,64,20,369 corpus with Rs 5,000 monthly SIP investment? See calculations
5x15x25 SIP Formula: If you’re looking for a guide to invest in SIPs, the 5x15x25 formula can be quite helpful. The 5x15x25 formula involves starting mutual fund investments through SIP and continuing for 25 years. Know here how it works -
5x15x25 SIP Formula: When it comes to investing money for future financial needs, there are numerous options available. Among them, mutual fund SIPs (Systematic Investment Plans) stand out as one of the most popular strategies for building significant wealth over the long term.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is an SIP?
As the name suggests, an SIP is an investment strategy that allows investors to invest a fixed amount in a mutual fund scheme at regular intervals. The best part is that it benefits from the power of compounding, meaning you earn interest not only on your principal amount but also on the interest previously accumulated.
5x15x25 SIP Formula
If you’re looking for a guide to invest in SIPs, the 5x15x25 formula can be quite helpful.
What is the 5x15x25 SIP Formula?
The 5x15x25 formula involves starting mutual fund investments through SIP and continuing for 25 years.
Create Over Rs 1.60 Crore with the 5x15x25 SIP Formula
By following this formula, you could create a corpus of over Rs 1.60 crore in 25 years.
How Does the 5x15x25 SIP Formula Work?
Here’s how the formula breaks down:
- 5: Represents a monthly SIP of Rs 5,000
- 15: Denotes the expected annualized SIP returns (15%)
- 25: Refers to the number of years you’ll invest
Applying the 5x15x25 SIP Formula
Now, let’s see how much money you can accumulate in 25 years using this formula.
What Will Be Your Total Investment Over 25 Years Using the 5x15x25 SIP Formula?
If you start with a monthly SIP of Rs 5,000 and continue for 25 years, your total investment will amount to Rs 15,00,000.
What Will Be Your Expected Annualised Return in 25 Years Using the 5x15x25 SIP Formula?
With an average annual return of 15 per cent, your investment can grow, earning approximately Rs 1,49,20,369 in long-term capital gains over 25 years.
How Much Corpus Can You Accumulate at the End of 25 Years?
Combining your initial investment with the long-term capital gain, you can accumulate an estimated total of Rs 1,64,20,369 by the end of the 25 years.
Full Calculation Using the 5x15x25 SIP Formula
- Total Investment: Rs 15,00,000
- Expected Capital Gain: Rs 1,49,20,369
- Total Corpus: Rs 1,64,20,369
SIP Offers Growth Potential
With an average annual return of 15 per cent, SIPs offer substantial growth, often outperforming many other investment schemes. The rupee cost averaging feature ensures that your investments remain stable, even during market fluctuations.
Freedom to Pause, Withdraw, or Increase Investments
Depending on your financial needs, you have the flexibility to pause, withdraw, or increase your SIP investments.