Power of 18x15x12 SIP Strategy: Know in how many years you can build Rs 1.14 crore corpus by investing Rs 15,000 monthly | See calculations
18x15x12 SIP Formula of Investment: As soon as people start earning, they naturally want to secure their future and become crorepatis. However, achieving this goal can seem impossible for those without proper planning. Also, many people believe that a lower salary means they can never secure their financial future. But with the right strategy and planning, it's entirely possible to build a substantial corpus like Rs 1 crore. Here’s how:
Invest in SIP
If you're looking to build a large corpus through disciplined, regular contributions, SIP investing could be one of the best options for you. And if you're considering mutual funds, the 18x15x12 formula could help you create a corpus of over Rs 1.14 crore in less than 20 years.
18x15x12 Formula
With this formula, you only need to invest Rs 15,000. Here's how it works:
SIP Investment: How does the 18x15x12 formula work?
The formula, 18x15x12, involves starting mutual fund investments through SIP (Systematic Investment Plan) and continuing for 18 years. In the formula - "15" represents a monthly SIP of Rs 15,000. "12" denotes the anticipated annualised SIP returns. While "18" signifies the number of years, implying that you need to invest in SIP for 18 years.
18x15x12 SIP Formula: Your total investment
Using this formula, if you start a monthly SIP of Rs 15,000 and continue for 18 years, your total investment will amount to Rs 32,40,000.
18x15x12 SIP Formula: Calculating expected annualised return
With an average return rate of 12 per cent, your investment will grow, earning approximately Rs 82,41,589 in long-term capital gains over 18 years.
18x15x12 SIP Formula: Calculation to create corpus of over Rs 1.14 crore
At the end of 18 years, combining your initial investment and the long-term capital gain earned, you will accumulate an estimated amount of Rs 1,14,81,589.
18x15x12 SIP Formula: You become crorepati in 18 years with Rs 30,000 salary
By following the 18x15x12 formula, you can amass Rs 1 crore and become a crorepati in less than 18 years.
Power of compounding
SIP offers significant benefits, primarily due to the power of compounding. The longer the SIP duration, the greater the compounding benefits.
SIP Benefits: Offer substantial growth
With an average annual return of 12 - 15 per cent, SIPs offer substantial growth, outperforming many other investment schemes. Additionally, the rupee cost averaging feature ensures that expenses remain stable, even during market fluctuations.
A flexible investment option
SIPs offer flexible investment options, allowing you to choose the investment amount and period that suits your needs, whether monthly, quarterly, or semi-annually.
SIP works as per your financial requirements
As per your financial requirements, you have the freedom to pause, withdraw, or increase SIP investments.