15x15x15 Formula: How your Rs 15,000 SIP investment may help you build over Rs 1 crore corpus; see calculations
15x15x15 SIP Formula: Are you planning to retire in the next 15 years with a substantial corpus but unsure how to achieve this goal? If so, a Systematic Investment Plan (SIP) could be the solution. A mutual fund SIP is a disciplined approach to investing, where you contribute a fixed amount regularly. It allows you to invest monthly or quarterly, rather than a lump sum, while taking advantage of the power of compounding and benefiting from market growth over time.
SIP also offers flexibility, allowing you to pause, withdraw, or increase your contributions based on your financial situation. Due to these advantages, SIP has long been a popular choice for many investors.
If you're considering investing in mutual funds and need a strategy, the 15x15x15 SIP formula might be worth exploring.
(Disclaimer: This is not investment advice. The calculations provided are projections. Please do your own due diligence or consult a financial advisor for retirement planning.)
15x15x15 SIP Formula
The 15x15x15 SIP formula is an investment strategy designed to help you accumulate over Rs 1 crore in just 15 years. Let's know how it works:-
15x15x15 SIP Formula: How this formula works?
In the 15x15x15 SIP formula - the first "15" represents a monthly SIP of Rs 15,000. The second "15" denotes the anticipated annualised return i.e., 15 per cent. While the third "15" signifies the number of years, implying that you need to invest in SIP for 15 years.
- First "15": Invest Rs 15,000 monthly.
- Second "15": Aim for an annualized return of 15%.
- Third "15": Maintain this investment for 15 years.
15x15x15 SIP Formula: Calculating the total investment
Applying this formula, if you start a monthly SIP of Rs 15,000 and continue it for 15 years, then you will invest a total of Rs 27,00,000.
15x15x15 SIP Formula: Calculating estimated capital gains
With an annualised return of 15 per cent, the estimated capital gain could be around Rs 74,52,946.
15x15x15 SIP Formula: Total amount received
Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 1,01,52,946 over 15 years.
15x15x15 SIP Formula: Calculation for Rs 1 crore corpus
Total Investment Amount: Rs 27,00,000
Estimated Capital Gains: Rs 74,52,946
Total Approx. Return: Rs 1,01,52,946
15x15x15 SIP Formula: You become a crorepati in 15 years
Therefore, by using this formula you can become a crorepati in just 15 years.
SIP: Understanding risks
It’s important to know that SIP is a market-linked scheme, so returns are not guaranteed. The 15 per cent annualised return mentioned above is an estimate, and actual returns may vary depending on market conditions.
Corpus if you get 14% annualised SIP return
For example, if your investments yield 14 per cent annuaised return, your estimated corpus will be Rs 91,92,807 in 15 years.
Corpus if you get 16% annualised SIP return
Similarly, if your investments yield 16 per cent annualised return, your estimated corpus will be Rs 1,12,28,700 in 15 years.
Benefits of SIP
Despite the market risks, SIP is often considered a good option for wealth creation because it benefits from rupee cost averaging, which helps mitigate losses. However, keep in mind the inherent risks of investing in SIP and plan accordingly.