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15x15x15 SIP Formula: In how many years can Rs 15,000 monthly investment grow to over Rs 1 crore?
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
15x15x15 SIP Formula: SIP, also known as a Systematic Investment Plan, is a strategy for investing in mutual funds. Investors can invest according to their financial capabilities. It offers investment flexibility, meaning investors can pause, withdraw, or increase their SIP contributions. Additionally, other benefits include the power of compound interest, no lock-in period, flexibility to choose the investor and rupee cost averaging.
Power of compounding: This is a process where you earn capital gains not only on the principal but also on previously earned capital gains. Essentially, this creates a snowball effect that helps your investment grow exponentially over time.
However, some people get confused about how to structure their SIP plan. To help them, there are several SIP formulas available in the market, and the 15x15x15 formula is one of them. What is this formula, and how does it work? Let’s find out in this write-up –
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What is the 15x15x15 formula?
1/7The 15x15x15 SIP formula is a financial strategy designed to help an investor accumulate around Rs 1 crore in just 15 years.
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15x15x15 SIP Rule Explained: How does formula work?
2/7According to the formula,
First "15" represents - monthly investment in SIP i.e., Rs 15,000/month.
Second "15" represents - annualised return rate i.e., 15 per cent (estimated).
Third "15" shows - the number of investment years i.e., 15 years.
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How to invest Rs 15,000 monthly to get Rs 1 crore?
3/7Now, let's apply the 15x15x15 SIP formula and calculate how much corpus one can accumulate in 15 years with a 15 per cent annual interest rate:
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How much money will be invested in 15 years using 15x15x15 SIP formula?
4/7As per the calculation, if Rs 15,000 is invested in SIP every month for 15 years, the total investment amount will be Rs 27,00,000.
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What will be the estimated capital gains with Rs 15,000 monthly SIP?
5/7Assuming an annual return of 15 per cent, your estimated capital gain in 15 years will be Rs 74,52,946.
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How much money will you receive in total after 15 years?
6/7After 15 years, your total amount will be approximately Rs 1,01,52,946. This is the sum of your initial investment and the capital gains earned.
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15x15x15 SIP Formula: Final Calculations
7/7Monthly investment: Rs 15,000
Total investment: Rs 27,00,000 in 15 years
Estimated Capital Gain: Rs 74,52,946
Total Amount Received: Rs 1,01,52,946
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