SIP Investment, 15x15x15 Formula: How investing Rs 15K monthly can build a corpus of over Rs 1 crore in 15 yrs | Know Calculation
SIP Investment, 15x15x15 Formula: There are many investment avenues available today, but investing in Systematic Investment Plans (SIP) is one of the popular investment strategies for those who want to build substantial wealth over time with regular, disciplined contributions. If you are one of them and want to invest in mutual funds then here's a formula for you - 15x15x15 formula. With this formula you can become a millionaire in 15 years. Let's know how:
SIP Investment: How 15x15x15 formula of SIP work?
The formula, 15x15x15, involves starting mutual fund investments through SIP (Systematic Investment Plan) and continuing till 15 years. In the formula - the "15" signifies the number of years, implying that you need to invest in SIP till 15 years. The second "15" represents a monthly SIP of Rs 15,000, and the third "15" denotes the anticipated returns, with an average SIP return considered to be 15 per cent.
15x15x15 SIP Formula: Calculating average investment
Applying this formula, if you start a monthly SIP of Rs 15,000 in the name of a person and continue it for 15 years, then you will invest a total of Rs 27,00,000 in 15 years.
15x15x15 SIP Formula: Calculating average return
Calculating the average return of SIP at 15 per cent, a total of Rs 74,52,946 will be received as interest on this amount in 15 years.
15x15x15 SIP Formula: Calculation to create a corpus of over Rs 1 crore
Consequently, at the end of 15 years, including the principal investment and interest, you will get a total of Rs 1,01,52,946.
15x15x15 SIP Formula: You become millionaire in 15 years
With this, you will get a substantial amount of Rs 1,01,52,946, and become millionaire in 15 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 return of 12 percent, which surpasses most other schemes, SIP offers considerable growth potential.
SIP offers growth potential
Additionally, the rupee cost averaging feature ensures that expenses remain stable, even during market fluctuations.
Provides flexibility
SIP investment provides flexibility in terms of investment period and amount, allowing you to choose monthly, quarterly, or semi-annual investment options according to your convenience.
Freedom to pause, withdraw, or increase investments
As per your financial requirements, you have the freedom to pause, withdraw, or increase SIP investments.