SIP: How to become a crorepati in 15 years through 15x15x15 formula (2024)

FAQs

SIP: How to become a crorepati in 15 years through 15x15x15 formula? ›

What is 15X15X15 formula? How can it help you build over Rs 1 crore corpus? As per this formula, if you invest Rs 15,000 a month in mutual funds through SIP for 15 years in a row and get a 15 per cent return on it, you can build over a Rs 1 crore corpus.

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.

What is 15-15-15 Rule? The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund. Consistent adherence to this strategy can lead to significant wealth accumulation.

It says that if you invest Rs. 15,000 per month via SIP in an equity mutual fund that is capable of generating an average return of 15%, you are most likely to become a crorepati in 15 years (as stated in the example above).

However, just for better understanding, if you invest Rs 20,000 for 20 years, assuming a rate of return of 12%, you will roughly be able to generate an income of Rs 2 crores.

The 15x15x30 rule of mutual funds involves investing Rs 15,000 per month for a period of 30 years in a fund that offers a 15% annual return. As per experts, this can give the investor an opportunity to accumulate Rs 10 crore against 1 crore.

So, assuming an investor invests ₹10,000 per month for 15 years, maintaining 10 per cent annual step up, mutual funds SIP calculator suggests that one's SIP of ₹10,000 would yield ₹1,03,11,841 or ₹1.03 crore.

How to accumulate Rs 1 crore in 15 years. If you want to accumulate Rs 1 crore in 15 years, your SIP investment per month will be Rs 19,819, and you will invest Rs 35.67 lakh overall. After this investment, you will get capital gains of Rs 64.33 lakh, while the total returns will be Rs 1 crore.

While the majority of your SIP investments are spread across multiple funds, the 7-5-3-1 rule suggests setting aside a portion for a one-time lump sum investment. This allows you to capitalize on specific opportunities or market conditions.

What is the average return of SIP after 15 years? ›

Over the 15 year period the compounded annual returns on your SIP investment in this fund would be 23%. In this article, we have seen how SIPs in large cap and diversified equity funds over the long term have created wealth for the investors.

The rule of 8-4-3 when it comes to compounding indicates a style of investment that accelerates growth with time. Initially, a corpus doubles within 8 years through an average annual return of 12% subsequently another doubling happens for the same period after another 4 years following its initial setting up.

The top performing SIPs these days have shown a remarkable growth of 18% to sometimes even more than 15% in a span of 15 years which is way more than any other investment option available in the market.

If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

If you invest Rs 1000 for 20 years , if we assume 12 % return , you would get Approx Rs 9.2 lakhs. Invested amount Rs 2.4 Lakh.

The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 30.5 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 28.6 lakh in 10 years.

There is no maximum tenure of a SIP. You can invest as long as you can. The minimum tenure you can go for is 3 years.