10X20X15 Formula: In how many years Rs 10k monthly SIP will grow to Rs 1.51 cr | See calculations
SIP Investment, 10X20X15 Formula: When it comes to investing, there are many options available today. But among all the options, Systematic Investment Plan (SIP) is one of the most popular strategies to build substantial wealth. Let's know how the 10X20X15 formula will help you to become a crorepati in 20 years.
SIP Investment, 10X20X15 Formula: When it comes to investing, there are many options available today. But among all the options, Systematic Investment Plan (SIP) is one of the most popular strategies to build substantial wealth.
Invest in SIP
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:
SIP Investment: How does the 10X20X15 formula work?
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.
10X20X15 SIP Formula: Calculating average investment
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.
10X20X15 SIP Formula: Calculating average return
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.
10X20X15 SIP Formula: Calculation to create corpus of over Rs 1 crore
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.
10X20X15 SIP Formula: You become crorepati in 20 years
By following the 10X20X15 formula, you can amass Rs 1.51 crore and become a crorepati in 20 years.
Benefits of SIP
SIP offers significant benefits, primarily due to the power of compounding. The longer the SIP duration, the greater the compounding benefits.
SIP offers growth potential
With an average annual return of 15%, SIPs offer substantial growth, outperforming many other investment schemes.
SIP offers growth potential
Additionally, the rupee cost averaging feature ensures that expenses remain stable, even during market fluctuations.
Provides flexibility
SIPs offer flexible investment options, allowing you to choose the investment amount and period that suits your needs, whether monthly, quarterly, or semi-annually.
Freedom to pause, withdraw, or increase investments
As per your financial requirements, you have the freedom to pause, withdraw, or increase SIP investments.