15x20x12 Formula: How this formula helps you to generate Rs 1,00,91,520 retirement corpus in 15 years? See calculations
15x20x12 SIP Formula Investment: Meeting daily expenses is essential, but it's equally important to set aside money for retirement. This ensures you can fulfill your needs post-retirement without relying on others. If you haven’t started saving yet and are wondering how to create a substantial corpus for the future, the mutual fund Systematic Investment Plan (SIP) could be a good option.
(Disclaimer: This is not investment advice. Calculations are projections. Please do your own due diligence or consult an advisor for retirement planning.)
What is SIP?
SIP is a disciplined approach to investing, where you contribute a fixed amount regularly.
Power of Compounding
SIP allows you to take advantage of the power of compounding, benefiting from market growth over time.
15x20x12 SIP Formula
If you're considering investing in mutual funds, then the 15x20x12 SIP Formula can be helpful.
How to Build Over Rs 1 Crore Retirement Corpus with the 15x20x12 SIP Formula?
In this write-up, we’ll explain through calculations how you can build over Rs 1 crore in a retirement corpus using the 15x20x12 SIP formula.
What is the 15x20x12 SIP Formula?
The 15x20x12 Formula is an investment strategy using SIP mutual funds that can help you build over Rs 1 crore for retirement in just 15 years. Here’s how it works:
How Does the 15x20x12 SIP Formula Work?
According to the formula:
- “15” represents the number of years
- “20” signifies a monthly SIP of Rs 20,000
- “12” denotes the anticipated annual returns of 12 per cent
What Will Be Your Total Investment Over 15 Years Using the 15x20x12 SIP Formula?
If you start a monthly SIP of Rs 20,000 and continue it for 15 years, your total investment will be Rs 36,00,000.
How Much Estimated Capital Gains Can You Receive Using the 15x20x12 SIP Formula?
With an annualised return of 12 per cent, your estimated capital gain could be approximately Rs 64,91,520 over 15 years.
What Will Be the Total Corpus in 15 Years Using the 15x20x12 SIP Formula?
By adding the initial investment to the capital gains, the total corpus could grow to around Rs 1,00,91,520 over 15 years.
Full Calculation:
- Total Investment Amount: Rs 36,00,000
- Estimated Capital Gains: Rs 64,91,520
- Total Approx. Return: Rs 1,00,91,520
SIP: Understanding the Risks
It’s important to note that SIP is a market-linked scheme, so returns are not guaranteed. The 12% annualized return mentioned above is an estimate, and actual returns may vary based on market conditions.