Mutual Funds: Mutual fund investments are subject to market risk, but if an investor invests for a longer period, the risk factor is reduced while mutual fund returns are maximized. There are many mutual fund rules that an investor needs to remember while investing and the 15 X 15 X 15 rule of mutual funds is one of them.
This mutual fund SIP (Systematic Investment Plan) rule of 15 X 15 X 15 says that if an investor invests ₹15,000 per month for 15 years, one can expect to get one crore maturity amount, as the returns It will be around 15 percent per annum. An investor can choose a small-cap, mid-cap or large-cap fund depending on his risk appetite.
How does this rule work?
- This rule states that a corpus of more than ₹1 crore can be created by achieving 15 percent annual return on 15,000 monthly SIPs for 15 years.
- If you go with 15% annualized return, the total expected return on the invested amount of ₹27,00,000 will be ₹74,52,946.
- Overall, the resultant corpus for a period of 15 years would be approximately 1,01,52,946.
According to mutual fund experts, these mutual fund SIP schemes are better for the 15 X 15 X 15 rule:-
- Small-Cap Fund: SBI Small Cap Fund – Regular Growth; CAGR – 66 percent.
- Mid-Cap Funds: Aditya Birla Sun Life Mid Fund – Plan – Growth Regular Plan; CAGR – 26 percent.
- Large-Cap Fund: HDFC Top 100 Fund – Regular Plan – Growth; CAGR – 38 percent.
(Investment advice in any fund is not given by ABP News here. The information given here is for informational purposes only. Mutual fund investments are subject to market risk, read all scheme documents carefully. NAV can fluctuate depending on the factors and forces influencing the security market including fluctuations in interest rates.The past performance of a mutual fund may not necessarily reflect the future performance of the schemes. The mutual fund does not guarantee or guarantee any dividend under any of the schemes and is subject to the availability and adequacy of distributable surplus. Investors are advised to review the prospectus carefully and seek specific legal, tax and scheme You are requested to seek expert professional advice regarding the financial implications of investing/participating in
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