The popular mutual fund 15-15-15 formula shows how a ₹15,000 monthly SIP for 15 years at 15% CAGR can create a ₹1 crore corpus. Here’s how this simple strategy works, why 15% returns are possible, and why SIPs are the best way to build long-term wealth.
Mutual Fund 15-15-15 Formula: Simple SIP Strategy to Build ₹1 Crore Corpus in 15 Years
If you dream of becoming a millionaire, then a very simple formula of mutual funds can show you the way. This is called the 15-15-15 formula – where a SIP of ₹15,000 every month, patience for 15 years and an expected return of 15% can give you a corpus of over ₹1 crore. This formula is not just a mathematical calculation, but it reflects long-term disciplined investing and the strength of the equity market.
What is the 15-15-15 Formula?
According to this formula, if an investor invests ₹15,000 every month in SIP in mutual funds and continues this investment for 15 years, then at the rate of 15% annual return (CAGR), his fund can eventually reach about ₹1 crore. This figure shows the power of compounding, where the profit earned on your investment continuously gets added to further investments.
See the calculation:
- Invested amount for 15 years: ₹27 lakh
- Gains: ₹74,52,946
- Total corpus after 15 years: ₹1,01,52,946
Why is 15% Return Possible?
The question arises whether mutual funds can really give 15% annual return? The answer is – yes, it is completely possible in the long term.
Market data shows that many equity mutual fund schemes have given 15% or more CAGR returns in the long term. If we talk about categories, small cap, mid cap and flexi cap funds have shown the ability to give 15% or more returns many times over a period of 15 years.
This does not mean that every fund will always give such returns, but historical performance gives confidence that staying in equity for a long time can give high returns.
Why is SIP Investment Better?
Systematic Investment Plan (SIP) is a disciplined and easy way for investors.
Its advantages are:
- Start with small investments: You do not need to invest a large amount at once.
- No fear of market timing: SIP is done on a fixed date every month, which gives an average of market fluctuations (rupee cost averaging).
- Magic of compounding: Even a small SIP can turn into crores in the long run.
- Financial discipline: Regular SIP keeps your expenses and savings balanced.
Why is the 15-15-15 Formula Special?
This formula is a simple way to explain to investors that a big fund is created only with patience and discipline. A monthly SIP of just ₹15,000, a tenure of 15 years and a rate of 15% — these are the three pillars of becoming a crorepati.
Points to Keep in Mind for SIP Investors
However, it is important to remember that mutual funds are subject to market risk. While they have given good returns in the past, it does not mean that the same will always happen in the future. Market conditions can change and returns can also vary.
Summing Up…
The 15-15-15 formula is a great example to make investors understand the power of SIP and equity investing. It shows that small but regular investments can make a big impact in the long run.
If you too dream of becoming a crorepati, then this formula can be a good guide for you, provided you are patient and continue investing without getting scared of market fluctuations.
At Wallet4Wealth, we help you design smart SIP plans, choose the right mutual funds, and stay disciplined on your investment journey. With expert guidance and continuous support, we ensure that your financial dreams — like achieving ₹1 crore and beyond — turn into reality.
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This blog is purely for educational purposes. Mutual fund investments are subject to market risks, read all scheme-related documents carefully.
