15x15x15 SIP Formula: In how many years Rs 15,000 monthly SIP investment can grow to over Rs 1 crore; calculations may surprise you
15x15x15 SIP Formula: Among investors, SIPs or Systematic Investment Plans are popular for their potential to earn significant wealth over the long term, but it is important to remember that they are market-linked investment plans. This simply means that returns are not guaranteed in SIPs. However, a systematic and disciplined approach in SIP can definitely help build substantial wealth. To guide people, 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 –
What is SIP?
A Systematic Investment Plan or SIP is an investment strategy where an investor can invest money based on their financial capacity in mutual funds.
Investment flexibility
SIP offers investment flexibility that means investors can pause, withdraw, or increase their SIP contributions.
Other benefits of SIP
- Power of Compounding
- No lock-in period, investor gets to choose
- Rupee cost averaging
SIP power of compounding
It is a process in which you will earn capital gain not only on the principal amount but also on the capital gain earned earlier. Basically, it creates a snowball effect that helps your investments grow exponentially over time.
What is the minimum amount to invest in an SIP?
One can start investing in SIP with as low as Rs 500 per month.
What is the maximum amount to invest in an SIP?
There is no maximum limit for investing in SIP mutual funds.
What is the 15x15x15 SIP formula?
The 15x15x15 SIP formula is a financial strategy designed to help an investor to accumulate Rs 1 crore (approx.) in just 15 years. Let's find out how -
How does 15x15x15 SIP formula work?
According 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.
15x15x15 SIP Formula: How to grow Rs 15,000 SIP to 1 crore?
Now, 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:
SIP investment 15 years: How much money will be invested in 15 years using the 15x15x15 SIP formula?
As per the calculation, if Rs 15,000 is invested monthly in SIP for 15 years, then the total invested amount will be Rs 27,00,000.
15x15x15 SIP Formula: What will be the estimated capital gains with a Rs 15,000 monthly SIP?
Assuming a 15 per cent annualised return, your estimated capital gain in 15 years would be Rs 74,52,946.
15x15x15 SIP Formula: How much money will you receive in total after 15 years?
Your total amount after 15 years will be around Rs 1,01,52,946. This is the sum of your initial investment and the capital gains made from it.
15x15x15 SIP Formula: SIP investment growth calculation
Monthly 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