SIP Required for Target Corpus
Calculate the exact monthly SIP investment required to build your target wealth corpus of ₹50 Lakhs, ₹1 Crore, or ₹5 Crores.
How Expanding Horizon Cuts Your Monthly SIP in Half
| Time Horizon | Required Monthly SIP (at 12%) | Total Invested | Market Compounding Contribution |
|---|
The Rule of 15-15-15: The Most Celebrated Formula in Indian Wealth Creation
In the Indian financial planning community, the Rule of 15-15-15 is famous for illustrating the exponential nature of compounding:
Over those 15 years, your own total capital contribution is only ₹27 Lakhs, while compound interest generates a staggering ₹73 Lakhs of pure wealth! If you hold that same portfolio for an additional 15 years (total 30 years), the corpus skyrockets past ₹10 Crores!
Frequently Asked Questions
Clear answers to common questions on formulas, taxation, and investing strategy.
Q1. How does increasing my time horizon lower the required monthly SIP?
Compounding grows exponentially. To accumulate ₹1 Crore at 12% CAGR: in 5 years, you need ₹1.21 Lakh/month; in 10 years, you need ₹43,000/month; in 15 years, you need only ₹20,000/month; and in 20 years, just ₹10,000/month.
Q2. Is a 12% to 14% CAGR realistic over 10 to 15 years in India?
Yes. India's broader economy grows at 6%–7% real GDP plus 5% inflation (11%–12% nominal growth). Diversified Indian equity mutual funds (Flexi Cap, Mid Cap, Large & Mid Cap) have historically mirrored nominal economic expansion plus active fund manager alpha.
Q3. What happens if markets crash just before I reach my target year?
Professional financial advisors recommend systematically moving your accumulated corpus from equities into liquid/arbitrage funds via an STP over the final 24 months of your goal to lock in your gains.
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Turn Calculations into Real Financial Freedom
Calculators provide mathematical estimates, but consistent wealth creation requires choosing the right high-performing diversified schemes, tracking annual alpha, and disciplined rebalancing.