SIP Tips: What is the 15X15X15 rule of SIP, a panacea for creating a big fund in a short time, how to use it?

Everyone is including mutual funds in their portfolios these days. This is because they offer attractive returns. However, these returns vary depending on the fluctuations in the stock market. Many of us resort to SIPs to invest in mutual funds.

SIPs allow you to build a large corpus from a small amount. Everyone aspires to build a large corpus in a short time through SIPs, but sometimes we are unable to do so.

Today, we're going to tell you a simple method that will help you build a large corpus in a short time. Let's explore how you can use the 15x15x15 rule in SIPs.

What is the 15x15x15 rule?

According to this rule, to build a corpus of ₹1 crore in a short time, you need to invest ₹15,000 every month. This investment will be made for 15 years. Thus, at a 15% return, you will be able to build a corpus of ₹1 crore in just 15 years.

Let's understand this with a calculation.

Calculation
Investment Amount - 15,000 per month
Return - 15%
Investment Period - 15 years
If an investor invests 15,000 rupees per month for 15 years, they will receive 1,01,52,946 rupees at a 15% return. Over these 15 years, the principal will be 27 lakh rupees. The profit alone will yield 74,52,946 rupees.

What is a SIP?
SIP is also known as a Systematic Investment Plan. As the name suggests, it involves investing money with a fixed investment for a fixed period of time. You get many benefits from SIP that you won't get with any other investment method.

Advantages:
You can start investing with just 100 rupees through SIP. There is no maximum limit.

You can increase the SIP amount at any time.

Additionally, you can stop it whenever you want.

There's no time limit for FDs or RDs; you can invest for as long as you want.

Disadvantages:
Under SIP, your money is invested in mutual funds. The returns from these funds depend on market fluctuations.

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