Updated Feb 18, 2026 15:19 IST
If the goal is to raise ₹50 lakh in 10 years then the 20 × 15 × 10 SIP formula can be helpful…
highlights
- If the goal is to raise ₹50 lakh in 10 years then the 20 × 15 × 10 SIP formula can be helpful.
- An investment of ₹20,000 every month and an expected return of 15% can create a corpus of around ₹55 lakh in 10 years.
- Compounding and discipline are the real strengths of this strategy.
SIP Calculator: If you also do SIP in a regular and disciplined manner, then even if you do not see any benefit in the short term, in the long term you can create a good fund through it. You can use it for everything from home down payment to children’s education. But the first question is whether you understand the way to create a big fund through SIP, if not then let us tell you the 20 × 15 × 10 formula of SIP, in which you can create a fund of more than Rs 50 lakh in 10 years with a SIP of Rs 20 thousand.
What is the 20 × 15 × 10 formula?
This SIP formula simply means an investment of ₹20,000 every month, an expected return of 15% per annum and a tenure of 10 years. If you do SIP of ₹20,000 every month for 10 years without interruption and get an average annual return of 15%, your corpus can go above ₹50 lakh.
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Understand the complete formula through calculation
- Monthly investment ₹20,000
- period 10 years
- Estimated return 15% per annum
- Total investment ₹24 lakh
- Expected value after 10 years ₹55.73 lakh
- Total profit ₹31.73 lakh
This means that you can earn more profit than the amount you invested only through the power of compounding. This is the real life of this formula.
Is 15% return really possible?
In such a situation, you can also ask whether getting 15% annual return is a reality? The answer is, yes in the long run. If we look at the data of last 10-15 years, many equity mutual funds have given CAGR of 15% or more through SIP. Especially small cap, mid cap and flexi cap funds have shown excellent returns in the long run.
It must be understood that 15% is not guaranteed every year. The market goes up and down. But over time, if you have patience and discipline, equities have the potential to deliver good returns.
Why is SIP a wise way?
SIP makes investing easy and disciplined. You do not need to invest a large amount at one go. Investments are made on fixed dates every month, which reduces the pressure of market timing. When the market falls, you get more units, and when the market rises, the value of your investment increases. This is called rupee cost averaging.
The biggest advantage is compounding. If even small amounts are invested continuously, a big fund can be formed over time. And the best part—it teaches you the habit of saving. First invest in yourself, then spend the rest.
Funds are created through planning
A target of ₹50 lakh sounds big, but with the right strategy and regular investments it is absolutely achievable. The 20×15×10 formula is not magic, but a game of discipline and timing. The sooner you start, the easier the journey will be.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions. Mutual fund investment is subject to market risks.
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