15x15x15 SIP Formula: Some people get confused about how to create their SIP plan. An SIP or Systematic Investment Plan is an investment strategy where an investor can invest money based on their financial capacity in mutual funds. It offers investment flexibility that means investors can pause, withdraw, or increase their SIP contributions.
There are several SIP formulas available in the market, and the 15x15x15 formula is one of them. What is this formula and how does it work? Let’s find out in this write-up –
- Benefits of SIP investment
- Power of Compounding
- No lock-in period, investor gets to choose
- Rupee cost averaging
What is the power of compounding in SIP?
It is a process in which you will earn capital gain not only on the principle amount but also on the capital gain earned earlier. Basically, it creates a snowball effect that helps your investments grow exponentially over time.
What is the minimum and maximum amount to invest in an SIP?
One can start investing in SIP with as low as Rs 500 per month. There is no maximum limit for investing in SIP mutual funds.
Financial planning with SIP: What is the 15x15x15 formula?
The 15x15x15 SIP formula is a financial strategy designed to help an investor accumulate Rs 1 crore (approx.) in just 15 years. Let’s find out how –
15x15x15 SIP Rule Explained: How does the formula work?
According to the formula,
- First “15” represents – monthly investment in SIP, i.e., Rs 15,000/month.
- Second “15” represents – annualised return rate, i.e., 15 per cent (estimated).
- Third “15” shows – the number of investment years, i.e., 15 years.
15x15x15 SIP Formula: How to invest Rs 15,000 monthly to get Rs 1 crore?
Now, let’s apply the 15x15x15 SIP Formula and calculate how much corpus one can accumulate in 15 years with a 15 per cent annual interest rate:
SIP investment 15 years: How much money will be invested in 15 years using the 15x15x15 SIP formula?
As per the calculation, if Rs 15,000 is invested monthly in SIP for 15 years, then the total invested amount will be Rs 27,00,000.
15x15x15 SIP Formula: What will be the estimated capital gains with a Rs 15,000 monthly SIP?
Assuming a 15 per cent annualised return, your estimated capital gain in 15 years would be Rs 74,52,946.
SIP Investment for Long–term Wealth: How much money will you receive in total after 15 years?
Your total amount after 15 years will be around Rs 1,01,52,946. This is the sum of your initial investment and the capital gains made from it.
15x15x15 SIP Formula: Rs 1 crore corpus with SIP calculation
- Monthly investment: Rs 15,000
- Total investment: Rs 27,00,000 in 15 years
- Estimated Capital Gain: Rs 74,52,946
- Total Amount Received: Rs 1,01,52,946