Mutual Fund Calculator: Your ₹500 per day savings can make you a millionaire

What is the 15x15x15 rule of mutual funds?

15x15x15 Rule of Mutual Funds involves investing 15,000 per month for a tenure of 15 years in a fund offering 15% annualized returns.

Well, it simply says that if one does a SIP of Rs 15,000 per month for 15 years, earning an average 15% compound annual return, you are able to accumulate. 1 crore (against your total investment of only 27 lakhs),” said Balwant Jain, a tax and investment expert.

What is compounding?

Compounding refers to the process of earning interest on your interest, thereby increasing your investment exponentially over time.

“Just by investing 15,000 per month for 15 years in a stock giving 15% annual return, you can accumulate a fund of 1,00,27,601. In other words, you would have only invested 27 lakhs and earned profit 73 lakh,” said Amit Gupta, MD, SAG Infotech.

15 X 15 X 30 Rule of Mutual Funds

Moreover, if you continue with this investment strategy for the next 15 years, your corpus will grow exponentially.

15 X 15 X 30 Rule of Mutual Funds? If you do an SIP of Rs 15,000 per month for 30 years (instead of 15 years as before) at 15% compound annual return, you will be able to accumulate Rs 10 crore as against Rs 1 crore if you invest for 15 years. Balwant Jain.

This shows that timing is the key for wealth creation, not timing, Jain said.

Meanwhile, capital markets regulator SEBI is looking at introducing performance-linked incentives for mutual funds and will soon come out with a consultation paper, news agency PTI reported.

Speaking at an MF, Kumar said, “…we are trying to focus. Shortly, you will see that once we come out with a consultation paper where we will try to add performance and that performance Will try to see what incentive structure we can build around that.” Summit organized by industry lobby CII.