Learn 15x15x15 Formula: How soon can a Rs 15,000/month SIP grow to Rs 1 crore at a given expected return; see calculations
Know how the 15x15x15 formula can help you to transform your monthly SIP investment of Rs 15,000 into over Rs 1 crore in just 15 years.
SIP Investment, 15x15x15 Formula: Mutual fund Systematic Investment Plans (SIPs) have emerged as a favored option among investors seeking to navigate the stock market's volatility. By allowing individuals to invest a fixed amount at regular intervals, such as monthly or quarterly, SIPs provide a disciplined approach to investing. This method mitigates the impact of market fluctuations, as investments are spread across various periods, reducing timing risks. SIPs also encourage long-term wealth creation, fostering a habit of regular savings.
Simply put, it is a method of investing in mutual funds allowing investors to contribute a fixed sum regularly, like monthly or quarterly, rather than a lump sum.
Invest in SIP
There are numerous rules for investing in mutual funds, especially for beginners to get a basic idea of how to invest. One such rule is the 15x15x15 principle, which suggests that with consistent investment over 15 years, an investor could potentially accumulate wealth of over Rs 1 crore and become a crorepati. Let's know how it works -
SIP Investment: How does the 15x15x15 formula work?
According to this rule, an investor has to start mutual fund investments through SIP (Systematic Investment Plan) and continue for 15 years. In the formula - "15" represents a monthly SIP of Rs 15,000. Second "15" denotes the annualised SIP returns. While the third "15" signifies the number of years, implying that you need to invest in SIP for 15 years.
15x15x15 SIP Formula: Your total investment
15x15x15 SIP Formula: Calculating expected annualised return
15x15x15 SIP Formula: Calculation to create corpus of over Rs 1.01 crore
At the end of the 15 years, combining your initial investment and the long-term capital gain earned, you will accumulate an estimated amount of Rs 1,01,52,946.