If you want to invest in mutual funds to acquire Rs 1 crore, there is a simple formula that will help you become a crorepati in the long run.
The 15-15-15 mutual fund investment formula can help you figure out how much you need to save each month, for how long, and at what pace to reach your goal of Rs 1 crore.
Stock markets are inherently unpredictable, yet they have a long-term tendency to rise, as seen in the past. Although a return of approximately 15% each year may not be attainable in the equities market, an annualized return of roughly 15% may be attained over the long run.
Investing guideline of 15-15-15
Figure ’15’ appears three times in the regulation, referring to savings growth rate, length, and monthly amount. If you can get a 15% annualized return over 15 years (180 months), you’ll need to save Rs 15000 every month to accumulate a corpus of Rs 1 crore.
In other words, the target amount of Rs 1 crore might be reached by investing Rs 15000 per month for 15 years at a 15% annualized growth rate.
Corpus – Rs 1 Crore (approximate)
Invested amount – Rs. 27 lakh ( in 15 years)
The profit is Rs. 73 lakh.
The rule is a rudimentary way of giving you a head start on long-term savings. You may utilize Step-up SIP to build a larger corpus if you are comfortable with a 12-percent annualized return. To save for a certain goal, one should first compute inflation-adjusted sums and then begin saving.
What does it do for you?
The 15-15-15 mutual fund rule considers two important factors: first, the SIP way of investing, and second, compounding to the investor’s benefit. You may instill a habit of saving by following the 15-15-15 mutual fund investment guidelines. As units are acquired through SIP, it helps to keep volatility under control. There is no desire to time the market; instead, when the market falls sharply, one can add more funds to the same SIP folio.
The Most Important Takeaway
When it comes to mutual fund investments, you should not only put money into them but also time, since time is money! Your mutual fund portfolio will benefit greatly from a long-term investing strategy, and following the 15-15-15 rule will make you a crorepati.
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