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15+15+25 SIP Formula: In how many years, can Rs 15,000 monthly SIP investment grow to over Rs 4 crore fund?
- Written by Priya Vishwakarma
Published: Zee Business| Updated: Zee Business
15+15+25 SIP Formula: Investing in SIP mutual funds is not that difficult if you are investing strategically. There are numerous rules for investing in mutual funds available, especially for beginners, to get a basic idea of how to invest. One such rule is the 15+15+25 formula. Using this formula, a consistent monthly investment of Rs 15,000 can accumulate a substantial corpus of over Rs 4 crore. Let's know how it works -
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.)
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What is SIP?
1/13SIP is a method of investing in mutual funds, where investors are allowed to invest a fixed amount at regular intervals.
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Benefits of SIP
2/13- Monthly investment rather than lump sum - Can invest according to financial capacity - Power of compounding - Flexibility in investment, such as monthly, quarterly, etc
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What is Compounding?
3/13Compounding allows your investment to earn returns on both - the principal amount and the capital gains generated from previous investments.
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15+15+25 Formula Of SIP Investment
4/13According to this rule, an investor has to start investing in a mutual fund SIP and continue for 25 years to build a corpus of Rs 4 crore.
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What is the 15+15+25 formula?
5/13In the formula - First "15" - represents a monthly SIP of Rs 15,000. Second "15" - denotes the annualised SIP returns. And "25" - signifies the number of years, i.e., one needs to invest in SIP for 25 years.
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15+15+25 SIP Formula: Your total investment
6/13Using this formula, if you start a monthly SIP of Rs 15,000 and continue for 25 years, your total investment will amount to Rs 45,00,000.
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15+15+25 SIP Formula: Calculating expected annualised return
7/13In 25 years, your investment will grow by around Rs 3,68,48,412 in the form of capital gains. It should be noted that the average return rate here is considered to be 15 per cent.
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15+15+25 SIP Formula: Calculation to create corpus of over Rs 4 crore
8/13At the end of the 25 years, combining your initial investment and the capital gain, you will accumulate an estimated amount of Rs 4,13,48,412.
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15+15+25 SIP Formula: You may become owner of Rs 4 crore corpus in 25 years
9/13By following the 15+15+25 formula, you can amass Rs 4.13 crore and become a crorepati in 25 years.
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15+15+25 SIP Formula: Calculation For Over Rs 2.5 crore corpus
10/13If we consider the average return rate to be 12 per cent, then in this condition, you can be able to accumulate a corpus of Rs 2.5 crore using this formula. The investment for 25 years will be Rs 45,00,000.
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15+15+25 SIP Formula: Calculation at 12% annual return
11/13At the rate of 12% annual return on this investment, the capital gain will be Rs 2,10,33,099. By adding the capital gain and the investment fund, the total fund will be around Rs 2,55,33,099.
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15+15+25 SIP Formula: Calculation at 13% annual return
12/13At the rate of 13% annual return on this investment, the capital gain will be Rs 2,54,47,177. By adding the capital gain and the investment fund, the total fund will be around Rs 2,99,47,177.
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15+15+25 SIP Formula: Calculation at 14% annual return
13/13At the rate of 14% annual return on this investment, the capital gain will be Rs 3,06,69,604. By adding the capital gain and the investment fund, the total fund will be around Rs 3,51,69,604.
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