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The Magic of the 15-15-15 Rule in SIP Investing
A simple yet powerful guideline to potentially build a ₹1 crore corpus through SIPs.

What is the 15-15-15 Rule?

The 15-15-15 rule is a financial guideline suggesting that if you invest:

  • ₹15,000 per month (via SIP in equity mutual funds)
  • For 15 years
  • At an expected average annual return of 15%

...you could potentially accumulate a corpus of approximately ₹1 crore.

Note: This is an illustrative rule. Actual returns are not guaranteed and depend on market performance.

How Compounding Works its Magic

The power behind this rule is compound interest. Here’s a simplified breakdown of how your money grows:

  • Total Amount Invested: ₹15,000/month × 12 months/year × 15 years = ₹27,00,000 (₹27 Lakhs)
  • Estimated Wealth Gained (Interest): ₹1,00,27,601 (Target Corpus) - ₹27,00,000 (Invested) = ₹73,27,601 (₹73.27 Lakhs)

This means that the interest earned (₹73.27 Lakhs) is significantly more than the principal amount invested (₹27 Lakhs). This happens because the returns you earn also start earning returns over time.

Try our SIP Calculator to see this in action →

Why Starting Early Matters

The longer your investment horizon, the more significant the impact of compounding. Let's see what happens if you extend the duration:

  • Invest ₹15,000/month at 15% for 20 years: You could potentially accumulate ~₹2.33 crores.
  • Invest ₹15,000/month at 15% for 25 years: You could potentially accumulate ~₹4.96 crores.
  • Invest ₹15,000/month at 15% for 30 years: You could potentially accumulate ~₹10.38 crores.

Even a few extra years of consistent investing can dramatically increase your final corpus due to the snowballing effect of compound interest.

Key Assumptions & Considerations

  • 15% Annual Return: This is an optimistic but achievable long-term average return from equity mutual funds. However, it's not guaranteed. Market returns fluctuate.
  • Discipline: Requires consistent monthly investment for the entire 15-year period without panic selling during market downturns.
  • Inflation: The ₹1 crore corpus will have lower purchasing power in 15 years due to inflation. Consider a Step-Up SIP to counter this.
  • Taxes & Expenses: Does not account for mutual fund expense ratios or capital gains taxes, which would reduce the final amount.
  • Risk: Equity investments carry market risk. Diversification and choosing funds based on risk appetite are crucial.