Smart investment planning: 15x15x15 rule!!!
Earning rupees from rupees is an art. For this, it is very important to have smart investment planning. Now people get confused in what is smart investment planning. Investment should always be safe and for long duration. Along with this, it is also very important to know which investment scheme will get how much profit. The younger you invest, the higher the return you will get. But if you follow the 15X15X15 investment formula, you can become a millionaire too. Power of compounding works behind this formula. The investment under this formula should be for a long time.
What is Power of Compounding?
Interest on original investment
profit of interest again on both the amounts
Power of compounding is basically an action of adding interest on interest.
15x15x15 Formula
For example, suppose you invested 15 thousand rupees per month for 15 years. You are getting 15 percent interest on this investment. You invested a total of Rs 27 lakh during this period. Apart from this, interest of Rs 73 lakh was earned through compounding. That is, after 15 years you will get a return of Rs 1 crore.
Investment for 10 years
Monthly SIP: Rs 10 thousand
Estimated Return: 12 percent per annum
Investment period: 10 years
Your total investment: Rs 12 lakh
Total Value of SIP: Rs 23 lakh
Benefit: Rs 11 lakh
15 years investment
Monthly SIP: Rs 10 thousand
Estimated Return: 12 percent per annum
Investment period: 15 years
Your total investment: Rs 18 lakh
Total Value of SIP: Rs 49.96 lakh
Benefit: Rs 31.96 lakh
Investment for 20 years
Monthly SIP: Rs 10 thousand
Estimated Return: 12 percent per annum
Investment period: 20 years
Your total investment: Rs 24 lakh
Total value of SIP: Rs 98.93 lakh
Benefit: Rs 74.93 lakh
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