How 15 X 15 X 15 rule of mutual funds can help you become a crorepati

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Mutual fund calculator: Mutual funds investment are subject to market risk but if an investor has a long-term time horizon, then one’s risk factor gets minimised whereas mutual fund return gets maximised. There are various mutual fund rules that an investor needs to remember while investing and 15 X 15 X 15 rule of mutual funds are one of them.

This mutual funds SIP (Systematic Investment Plan) rule says that if an investor invests 15,000 per month for 15 years, one can expect to get 1 crore maturity amount as the investment would yield around 15 per cent per annum.

Speaking on how mutual fund return calculator works in this 15 X 15 X 15 rule of mutual funds; Amit Gupta, MD at SAG Infotech said, “A very impressive rule of 15 X 15 X 15 is there in the mutual fund SIP plan, which has capability to turn a person crorepati. The rule is 15,000 monthly SIP at 15 per cent annual return in 15 years for getting a corpus of more than 1 crore. If by going with 15 per cent annual returns, there is a total estimated returns up to 74,52,946 upon invested amount of 27,00,000. As by compounding the overall amount for the tenure of 15 years, the resulting corpus is around 1,01,52,946 which makes a outcome of above 1 crore for the individual. This is rather attractive as viewed from the angle of consistent investment.”

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Source: Mutual fund calculator SBI

Asked about the mutual fund SIP plans that can yield 15 per cent return in 15 years; Vinit Khandare, CEO & Founder at MyFundBazaar India Private Limited said, “Depending upon the risk appetite of the investor, he or she can choose small-cap, mid-cap or large-cap fund.”

Vinit Khandare of MyFundBazaar listed out the following mutual fund SIP plans that may hold well for 15 X 15 X 15 rule of mutual funds:

Small-cap Fund: SBI Small Cap Fund – Regular Growth; CAGR – 20.66 per cent.

Mid-cap Fund: Aditya Birla Sun Life Mid Fund – Plan – Growth Regular Plan; CAGR – 15.26 per cent.

Large-cap Fund: HDFC Top 100 Fund – Regular Plan – Growth; CAGR – 15.38 per cent.

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