SIP Investment, 15x20x12 Formula: How investing Rs 20K monthly can build a corpus of Rs 1 crore in 15 yrs | Know Calculation

The formula, 15x20x12, involves starting mutual fund investments through SIP (Systematic Investment Plan) soon after the birth of your child and continuing till they turn 15. In the formula - the "15" signifies the number of years, implying that you need to invest in SIP from your child's birth and persist until they reach 15. The "20" represents a monthly SIP of Rs 20,000, and "12" denotes the anticipated returns, with an average SIP return considered to be 12 per cent.

Applying this formula, if you start a monthly SIP of Rs 20,000 in the name of the child as soon as he/she is born and continue it for 15 years, then you will invest a total of Rs 36,00,000 in 15 years. 

Calculating the average return of SIP at 12 per cent, a total of Rs 64,91,520 will be received as interest on this amount in 15 years. 

Consequently, at the end of 15 years, including the principal investment and interest, you will get a total of Rs 1,00,91,520. 

Therefore, when your child reaches 15, they will possess a substantial amount of Rs 1,00,91,520, facilitating the fulfillment of their every need.