What is rule 15X15X15 ? How to become crorepati investing in best mutual funds?
What is the 15X15X15 rule to become crorepati via mutual fund investment in SIPs mode?
The stock markets are known for extreme volatility due to macroeconomic risks. This is the reason there has been a significant jump in the appetite for SIPs mode of investment.
The 15X15X15 rule basically revolves around three factors namely the investment value, the investment tenure, and expectant rate returns. The Systematic Investment Plan (SIP) is seen as the best mechanism for use of Rule 15X15X15.
'Money attracts Money' is one of the common concept when it comes to mutual funds investment. Everyone would like to make big money, if possible, even become a crorepati in India by investment in best mutual funds or stock market. Best mutual funds in india, do have the potential to make an investor a crorepati actually. But just like every other market-related tradable instrument, best mutual funds too are subject to risks of volatility in market. However, the real investment income is when returns are fetched on a long-term basis, generally long term means 10-15 years. In this case, the 15X15X15 investment rule is the best method to build a corpus of around ₹1 crore using best mutual funds in India.
What is rule 15X15X15 ?
On its website, Nippon India Mutual Fund gives a definition and thorough explanation of the 15X15X15 investment rule. It said, compounding the eights wonder, for best mutual fund investments, refers to a concept that makes small amounts grow to a significant corpus when invested in best mutual funds over a long period. In other words, the investment returns you earn in one compounding period will earn returns in the next compounding period on accumulated amount, and so on.
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Nippon MF explains with an example: Let's assume you make an investment of ₹15,000 per month in best mutual funds of India for 15 years and expect to generate a 15% rate of returns on the investment.
As per compound interest calculations formula, Nippon Mutual Fund highlights that the amount you will receive after 15 years will be around ₹1 crore. The same compounding principle, when applied on accumulated amount for another 15 years, the total corpus exponentially increase to ₹10 crore approximately.
The 15X15X15 investment rule is among the most common method for investing in best Mutual Funds through monthly SIP mode.
Monthly SIP- ₹15,000
Total Investment: 15×12×₹15,000=₹27 lakh
Expected Final Corpus: ₹1.01 crore
Approximate profit : ₹74 lakh
Nippon MF stated that more the earlier you begin investing in best mutual funds in this way, the more wealth you can accumulate over time compared to others.
According to Dr. Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital, this Diwali is a good time to think about your current and future family wealth by investing in best mutual funds.
The stock market returns are volatile and our calculations are based on certain assumptions. If the funds fails to give desired 15% returns it may difficult to get the target amount with this investment rate. We may have to increase SIP amount or top up our investment.
This is not investment advice which one should take from their certified financial advisor.
SIPs have been gaining popularity among Indian Mutual fund investors, as it helps in Rupee Cost Averaging of investment and also in investing in a disciplined manner without worrying about market volatility and timing the market for investment.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of our blog.
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