10X20X15 Formula: In how many years Rs 10k monthly SIP will grow to Rs 1.51 cr | See calculations

If you are someone who wants to build a large corpus through disciplined, regular contributions then SIP investing can be one of the best options for you. And if you are considering mutual funds, then let me tell you that the 10X20X15 formula could be just what you need to become a crorepati in 20 years. This is how it works:

The formula, 10X20X15, involves starting mutual fund investments through SIP (Systematic Investment Plan) and continuing for 20 years. In the formula - "10" represents a monthly SIP of Rs 10,000. "20" signifies the number of years, implying that you need to invest in SIP for 20 years. While "15" denotes the annualised SIP returns, with an average SIP return considered to be 15 per cent.

Using this formula, if you start a monthly SIP of Rs 10,000 and continue for 20 years, your total investment will amount to Rs 24,00,000.

With an average return rate of 15 per cent, your investment will grow, earning approximately Rs 1,27,59,550 in long-term capital gains over 20 years.

At the end of the 20-year period, combining your initial investment and the interest earned, you will accumulate a total of Rs 1,51,59,550.

By following the 10X20X15 formula, you can amass Rs 1.51 crore and become a crorepati in 20 years.

SIP offers significant benefits, primarily due to the power of compounding. The longer the SIP duration, the greater the compounding benefits. 

With an average annual return of 15%, SIPs offer substantial growth, outperforming many other investment schemes.

Additionally, the rupee cost averaging feature ensures that expenses remain stable, even during market fluctuations.

SIPs offer flexible investment options, allowing you to choose the investment amount and period that suits your needs, whether monthly, quarterly, or semi-annually.

As per your financial requirements, you have the freedom to pause, withdraw, or increase SIP investments.