SIP Formula To Get Rich With: Turn Rs 15,000pm into Rs 19.77 crore; check mutual fund calculator

Crorepati Calculator: In mutual funds SIP there is a formula 15x15x15 that each mutual fund investor must remember. In this formula, one invests Rs 15,000 for 15 years and the returns that he can expect on net investment is 15 per cent, say experts.

For mutual funds SIP (Systematic Investment Plan) investors, growing your wealth into crores from thousands is a slow and steady process. Photo: Reuters

Crorepati Calculator: For mutual funds SIP (Systematic Investment Plan) investors, growing your wealth into crores from thousands is a slow and steady process. But, if the investment is disciplined, then the aspiration to become rich is achievable in good time. According to tax and investment experts, in SIP monthly mode, an investor should spare an amount that he can invest every month. In the long-term, this investment works towards developing an ocean of wealth from literally a drop.

Speaking on the beauty of mutual funds SIP, Balwant Jain, a Mumbai-based tax and investment expert associated with ApnaPaisa said, "In mutual funds SIP there is a formula 15x15x15 that each mutual fund investor must remember. In this formula, one invests Rs 15,000 for 15 years and the returns that he can expect on net investment is 15 per cent." Jain said that at the end of 15 years, the net returns that the investor would get is Rs 1.02 crore.

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Jain also said that in this period, the person would definitely get an annual salary hike too.

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Suppose, therefore, that the person gets a 10 per cent annual salary hike. Then the trick is, this person should top-up his monthly SIP with that amount too. Then, in that case, after 15 years of investment, the net return that the investor would get is Rs 1,60,63,163 or Rs 1.61 crore — nearly Rs 50 lakh higher than in 15X15X15 mutual funds SIP formula.

That was the case for 15 years' investment. However, what happens if this period is extended to 30 years?

Tax and investment experts said that if an investor begins investing on these lines at the age of 30 years, then he or she can easily continue investing for next 30 years.
Asking the investors to go long in this formula, if the investment has been started around 30, SEBI registered tax and investment expert Jitendra Solanki said that one should continue investing in SIP till one's retirement, provided there is no financial emergency. The long-term mutual funds SIP gives interest on interest benefits that help grow one's money exponentially in the later phase of investment.

So, assuming the investment for 30 years in the 15X15X15 formula with 10 per cent annual top up in the monthly SIP amount, the mutual funds calculator suggests that one will be able to grow one's corpus up to Rs 19,77,91,975 or Rs 19.77 crore.