What Is 15-15-15 Rule In Mutual Fund Investment?

Mutual funds have emerged as the go to option during the outbreak with surplus funds to multiply their wealth and the momentum remains intact amid the current bull run we are into. While the current times, throw a number of questions in the minds of mutual fund investors whether they should book profits, discontinue with their current SIPs, bull or bearish sentiment in the market should never provoke you to redeem or offload your investments.

Now as you very well know mutual funds can help you multiply your wealth be also put a simple rule that will help you ascertain 3 aspects related to your investment into mutual funds including:

1. Amount you would need to save on a month on month basis to reach your desired financial goal.

2. For how long you would need to invest.

3. At what rate you would likely see your money growth say to reach a target goal of Rs. 1 crore.

Understanding 15-15-15 rule in mutual fund investment

The rule uses figure 15 thrice reflecting all the 3 variables discussed above i.e. growth rate, number of years of investment and growth rate. So for accumulating a corpus of Rs. 1 crore, the annualized growth of 15 percent and investment for 15 years i.e. 15*12 months and a sum of Rs. 15000 per month shall help in reaching the target gold.

So, here on the investment of 27 lakhs made over the tenure of 15 years one can gain up to Rs. 73 lakhs. For a better realization of your targeted goal, you are advised to discount in the inflation aspect and target the inflation adjusted amount for that specific goal.

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