2024-04-13 18:16:30
New Delhi: Not everyone is lucky to reach the TV show ‘Kaun Banega Crorepati’ (KBC). It is not certain that you will become a millionaire after reaching there. But, one can become a millionaire even without reaching the show. That too through monthly savings. The way to do this is SIP. Systematic Investment Plan i.e. SIP is a very useful thing. This is a great way to invest in mutual funds. Especially for those who do not have a large lump sum amount to invest and want to raise a big fund in a few years. Through SIP, cost averaging is availed by purchasing NAV in different proportions in different investment intervals. This gives the benefit of compound returns. If one is consistent in his investments, he can accumulate a huge amount in the long run. Even if his monthly SIP is small. 15X15X15 formula is one such technique of investing in mutual funds. This technique can help you create a corpus of more than Rs 1 crore in 15 years. Even if you start investing at the age of 30. Come, let us know here what is the 15X15X15 formula. How can this approach help you build a corpus of more than Rs 1 crore in 15 years?
What is 15X15X15 formula? How does it help in creating a fund of Rs 1 crore?
According to this formula, if you invest Rs 15,000 every month in a mutual fund through SIP for 15 consecutive years and get 15 percent return on it, then you can create a fund of more than Rs 1 crore. For example, according to the SIP calculator, if you invest Rs 15,000 every month through SIP for 15 consecutive years, you will invest a total of Rs 27,00,000. Your estimated long term capital gain at 15% return will be Rs 74,52,946. After 15 years you will have a total of Rs 1,01,52,946.
Is 15% return possible for 15 years?
In the last 10 years, Nifty 50 index has grown at a CAGR of 14.6 percent. Many leading short, mid and small-cap equity funds have given returns of more than 15 per cent in the last decade. In such a situation, a return of 15 percent for 15 consecutive years is quite possible.
What should be the earning for investing Rs 15,000?
If your monthly income is Rs 80,000 or around then you can invest Rs 15,000 every month. According to a major financial rule, 20 percent of the income should be saved and invested. If your monthly income is Rs 80,000 then 20 percent of it becomes Rs 16 thousand. Here you will have to invest Rs 15,000 per month, which you can do if you follow the investment rules. If you start this investment at the age of 30, you can become a millionaire at the age of 45.