SIP Formula: If you are seeking a strategy or investment for your retirement, we offer a mutual fund formula that can significantly enhance your wealth over the long term.
The Systematic Investment Plan (SIP) in mutual funds is a widely favored choice for long-term investments. As indicated by its name, SIP is a structured and disciplined approach that allows investors to contribute a fixed sum at regular intervals. These intervals can be monthly, quarterly, or annually, based on the investor’s preference.
15x15x15 SIP formula
This formula enables investors to accumulate approximately Rs 1 crore within a span of 15 years. Here’s how it functions: the first “15” signifies that you should invest Rs 15,000 each month in SIP. The second “15” indicates an expected annual return of 15 percent. The third “15” denotes that the investment should be maintained for a minimum of 15 years.
Let us apply this formula to determine the total corpus accumulated over 15 years:
Monthly investment: Rs 15,000
Total investment over 15 years: Rs 27,00,000
Estimated capital gain: Rs 74,52,946
Total amount: Rs 1,01,52,946
But always remember this before you invest
While SIP has the potential to yield substantial returns over time, it is crucial to acknowledge that it is a market-linked investment. This implies that returns are not guaranteed. The 15 percent annual return mentioned is an estimate, and actual returns may fluctuate based on market conditions.