Mutual fund investment is an indirect exposure to the stock market so it is subject to market risk. On behalf of mutual fund investors, their fund managers invest in the stock market and manage the portfolio assets. A large number of investors are investing in mutual funds as it helps them beat the average growth of inflation over a long period of time. According to tax and investment experts, long-term equity investors are advised to remember the 15-15-15 rule of mutual funds which states that an investor can expect a return of 15 per cent on his investment. This Equity Mutual Fund Rule Also Explains How To Build Your First 1 crore from the stock market.
how to explain 15-15-15 Rule of Mutual Funds Can help an investor make their first deposit 1 crore from the stock market; Pankaj Mathpal, Founder and CEO, Optima Money Managers said, “The 15-15-15 rule of mutual funds says that if a mutual fund SIP investor invests. 15,000 per month for 15 years, then can get 1 crore maturity amount at 15 per cent annual return on one’s money.”
However, Pankaj Mathpal of Optima Money Managers said that anyone can get it. 1 Crore target a little bit before the stock market even if they increase their monthly investment along with the increase in their income using annual step-up in monthly SIP amount.
Explaining how this annual move will help an investor maximize their returns and make their first 1 crore from the stock market; Jitendra Solanki, SEBI registered tax and investment expert said, “It is advisable for an investor to increase their annual income as well as increase the monthly SIP. This helps an investor to maximize his returns over a long period of time. For the 15-15-15 rule, I suggest investors to remember the 15-15-15-15 rule, where everything remains the same, but an additional 15 percent annual step-up in the monthly SIP amount is added.By doing this, an investor will be able to mark his first 1 crore from the stock market in 12 years while after 15 years he will get approx. 2 crore maturity amount. Therefore, an additional 15 percent annual move will help an investor take the next step. 1 crore from the stock market in the next 3 years itself.”
On Equity Mutual Funds That Can Help An Investor Make First 1 crore from the stock market following the 15-15-15 rule of mutual funds; Vineet Khandare, CEO and Founder of MyFundBazaar India Private Limited listed the following mutual fund schemes:
– Small Cap Funds: SBI Small Cap Fund — Regular Growth;
– Mid Cap Funds: Aditya Birla Sun Life Mid Fund Plan; And
– Large Cap Funds: HDFC Top 100 Fund – Regular Plan Growth.