The 15-15-15 rule is the easiest way to grow wealth through investing in mutual funds. Think of it as an easy formula to reach your bank goal of having Rs 1 crore
Janvi | May 24, 2025 |
A Simple Way to Build Rs.1 Crore: The 15-15-15 Rule Explained
The 15-15-15 rule is the easiest way to grow wealth through investing in mutual funds. Think of it as an easy formula to reach your bank goal of having Rs 1 crore. The 15-15-15 rule is tailored for investors who have a preference for finding investments every month, which is easy to do, and do not want to have to deal with complicated financial arrangements that are just too expensive and not worth the costs. CA Deepak Gupta, founder of Finvestment Pro, explains how this simple rule works and how it can change your financial future.
As per CA Deepak Gupta The 15-15-15 rule is a straightforward investment plan, which involves investing Rs 15,000 every month into a mutual fund for 15 years, with an expected annual return of about 15%. If you do this religiously, you can potentially create a corpus of about Rs. 1 Crore. It’s like paying a monthly obligation; you are putting away a fixed amount at the end of each month and that money is actually growing.
And if the same investment continues for 30 years without stopping, then the corpus will be 10 crore after 30 years.
Compounding is like a magic trick for your money. As you put your money in a mutual fund, the money you earn as a return builds back into your original investment. The following year, you earn a return not only on your original amount of investment but also on the returns from the previous year. It’s like a snowball rolling down a hill – it keeps getting larger and larger. The longer you keep your money invested, the stronger this effect will be.
The 15-15-15 rule allows you to reach your daunting personal financial aspirations with small, classical steps. If you make Rs 50,000 a month and decide to save Rs 10,000 (20% of your monthly salary) every month, this will give you Rs 67.68 lakh. If you are able to compound at 15% annually, after calculating Target Corpus years, you would get Rs 67.68 lakh. This small habit of saving every month can be used to buy a house, save for your children’s education, or provide a decent cash flow for anyone’s ideal retirement.
Inflation is like a silent thief that reduces the value of your money over time. What costs Rs 100 today might cost Rs 600 after 20 years due to inflation. But when you invest in mutual funds that give good returns, your money grows faster than inflation. For example, if you invest Rs 1,000 in a fund giving 15% annual returns, it becomes Rs 16,366 in 20 years, while keeping the same money in a savings account would lose its purchasing power due to inflation.
To figure out how much money you can accumulate using the 15-15-15 rule, you need to consider three simple things: how much you invest each month, what returns you expect, and for how many years you’ll invest. You can use online calculators or speak to a financial advisor to get a clear picture. Remember, even small changes in any of these three factors can make a big difference in your final amount, so it’s worth planning carefully.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
