14+15+16 SIP Formula: In how many years, can Rs 14,000 monthly SIP investment grow to over Rs 1 crore fund?

Systematic Investment Plan, commonly known as SIP, is a method of investing in mutual funds, where investors are allowed to invest a fixed amount at regular intervals. 

These intervals can be monthly, quarterly, or annually. 

- Monthly investment rather than lump sum - Can invest according to financial capacity - Power of compounding

According to this rule, an investor has to start investing in a mutual fund SIP and continue for 16 years to build a corpus of Rs 1 crore. 

In the formula -  The "14" -  represents a monthly SIP of Rs 14,000.  The "15" - denotes the annualised SIP returns.  And "16" - signifies the number of years, i.e., one needs to invest in SIP for 16 years.

Using this formula, if you start a monthly SIP of Rs 14,000 and continue for 16 years, your total investment will amount to Rs 26,88,000.

Also Read: Power of 12% SIP Return: How quickly you can generate Rs 10 crore, Rs 12 crore, and Rs 15 crore retirement corpus with Rs 25,000/month investment

In 16 years, your investment will grow by around Rs 74,16,845 in the form of capital gains. It should be noted that the average return rate here is considered to be 15 per cent.

At the end of 16 years, combining your initial investment and the capital gain, you will accumulate an estimated amount of Rs 1,01,04,845.

By following the 14+15+16 formula, you can amass Rs 1.01 crore and become a crorepati in 16 years.

If we consider the average return rate to be 12 per cent, then in this condition, you can be able to accumulate a corpus of over Rs 76,00,000 using this formula. The investment for 16 years will be Rs 26,88,000.

At the rate of 12 per cent annual return on this investment, the capital gain will be Rs 49,53,335. By adding the capital gain and the investment fund, the total fund will be around Rs 76,41,335.

If we consider the average return rate to be 13 per cent, then in this condition, you can be able to accumulate a corpus of over Rs 83,00,000 using this formula. The investment for 16 years will be Rs 26,88,000.

At the rate of 13 per cent annual return on this investment, the capital gain will be Rs 56,94,671. By adding the capital gain and the investment fund, the total fund will be around Rs 83,82,671.

If we consider the average return rate to be 14 per cent, then in this condition, you can be able to accumulate a corpus of over Rs 92,00,000 using this formula. The investment for 16 years will be Rs 26,88,000.

At the rate of 14 per cent annual return on this investment, the capital gain will be Rs 65,13,191. By adding the capital gain and the investment fund, the total fund will be around Rs 92,01,191.