SIP: Investing in mutual funds through Systematic Investment Plan (SIP) has become quite common these days. However, if investment is made in the right way and in a disciplined manner, then there can be a lot of benefit and a good fund can also be made in the long run. Today we will talk about such a great formula, by adopting which one can become a millionaire from mutual funds. Let’s know…
Mutual Fund
Mutual Fund SIP helps the investor to get compounding benefits over the long term. Hence most of the mutual fund SIP investors go for long term investment. So if your goal as an investor is to accumulate Rs 1 crore, there is a simple and effective strategy that you can follow and that is the 15x15x15 rule.
What is the 15x15x15 rule of mutual funds?
The 15x15x15 rule of mutual funds involves investing Rs 15,000 every month for a period of 15 years in a fund giving 15% annual returns. This means that you will have to invest Rs 500 every day for 30 days of the month and this investment will have to be done for 15 years.
SIP In simple terms, SIP of Rs 15,000 every month for 15 years under this formula, which earns an average 15% compound annual return, would enable you to accumulate Rs 1 crore. Are. Till this, by investing 15 thousand every month, an investment of 27 lakh rupees will be done through you in 15 years.
What is compounding?
Compounding refers to the process of earning interest on your interest, thereby making your investment grow handsomely over time. By investing just Rs 15000 per month for 15 years in a stock giving 15% annual return, you can accumulate a fund of Rs 1,00,27,601. In other words, you will earn a profit of Rs 73 lakh on an investment of only Rs 27 lakh in this way.
