15x20x12 SIP Formula: In how many years, your Rs 20,000 monthly SIP investment can take you to Rs 1 crore corpus? Know through calculations
15x20x12 SIP Formula Investment: For a salaried individual, life often revolves around meeting daily expenses. However, amid these daily needs, it's important to set aside money for future financial goals and unexpected challenges. If you haven't started saving yet and are wondering how to create a substantial corpus for the future, mutual fund Systematic Investment Plans (SIP) could be an excellent option.
SIP is a disciplined approach to investing, where you contribute a fixed amount regularly. It allows you to take advantage of the power of compounding and benefit from market growth over time.
If you're considering investing in mutual funds, you might want to try the 15x20x12 SIP Formula.
(Disclaimer: This is not investment advice. Calculations are projections. Please do your own due diligence or consult an advisor for retirement planning.)
15x20x12 SIP Formula
The formula of investments through SIP mutual fund - 15x20x12 - is an investment strategy that will help a person to build over Rs 1 crore in just 15 years. Let's know how -
SIP Investment: How 15x20x12 formula of SIP work?
In the 15x20x12 SIP formula - the "12" denotes the anticipated returns, with an average SIP return considered to be 12 per cent, "15" signifies the number of years, implying that you need to invest in SIP for 15 years, and "20" represents a monthly SIP of Rs 20,000.
15x20x12 SIP Formula: Calculating the total investment
Applying this formula, if you start a monthly SIP of Rs 20,000 and continue it for 15 years, then you will invest a total of Rs 36,00,000 in 15 years.
15x20x12 SIP Formula: Calculating estimated capital gains
With an annualised return of 12 per cent, the estimated capital gain could be around Rs 64,91,520.
15x20x12 SIP Formula: Total amount received
Adding the initial investment to this capital gain, your total investment could grow to approximately Rs 1,00,91,520 over 15 years.
15x20x12 SIP Formula: Calculation for Rs 1 crore corpus
Total Investment Amount: Rs 36,00,000
Estimated Capital Gains: Rs 64,91,520
Total Approx. Return: Rs 1,00,91,520
15x20x12 SIP Formula: You become a crorepati in 15 years
Therefore, by using this formula you can become a crorepati in just 15 years.
SIP: Understanding risks
It’s important to know that SIP is a market-linked scheme, so returns are not guaranteed. The 12 per cent annualised return mentioned above is an estimate, and actual returns may vary depending on market conditions.
Corpus if you get 13% annualised SIP return
For example, if your investments yield 13 per cent annualised return, your estimated corpus will be Rs 1,11,13,626 in 15 years.
Corpus if you get 14% annualised SIP return
Similarly, if your investments yield 14 per cent annuaised return, your estimated corpus will be Rs 1,22,57,076 in 15 years.
Benefits of SIP
Despite the market risks, SIP is often considered a good option for wealth creation because it benefits from rupee cost averaging, which helps mitigate losses. However, keep in mind the inherent risks of investing in SIP and plan accordingly.