What is the 15-15-15 rule in Mutual Funds? - ICICIdirect (2024)

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What is the 15-15-15 rule in Mutual Funds? - ICICIdirect (2024)

FAQs

What is the 15-15-15 rule in Mutual Funds? - ICICIdirect? ›

Meaning of the 15-15-15 rule in Mutual Funds

What is the 15x15x15 rule in mutual funds? ›

What is the 15-15-15 rule in mutual funds? The rule says that an investor can create a corpus of around one crore rupees by investing Rs. 15,000 per month for 15 years in a mutual fund that can generate 15% average returns based on the power of compounding.

Can we get a 15% return on a mutual fund? ›

As you know there are no fixed returns in mutual funds but you can expect around 8% - 10% in Debt hybrid funds, around 10% - 12% in equity hybrid funds and 12%-15% in equity funds if you have a long-term horizon.

What happens if I invest $10,000 a month in SIP for 15 years? ›

So, assuming an investor invests ₹10,000 per month for 15 years, maintaining 10 per cent annual step up, mutual funds SIP calculator suggests that one's SIP of ₹10,000 would yield ₹1,03,11,841 or ₹1.03 crore.

What is the SIP of $15,000 per month for 15 years? ›

Utilising the SIP calculator, an investment of Rs 15,000 monthly over a duration of 15 years results in a total capital outlay of Rs 27,00,000. Assuming an annual return of 15%, the projected long-term capital gains are estimated to be Rs 74,52,946. After 15 years, you will get a total of Rs 1,01,52,946.

What is the 15-15-15 formula? ›

What is the “15*15*15 Rule” in Mutual Funds? Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore).

What if I invest $5,000 in mutual funds for 5 years? ›

If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.

Should a 70 year old invest in mutual funds? ›

Conventional wisdom holds that when you hit your 70s, you should adjust your investment portfolio so it leans heavily toward low-risk bonds and cash accounts and away from higher-risk stocks and mutual funds. That strategy still has merit, according to many financial advisors.

What if I invest $1,000 a month in mutual funds for 20 years? ›

If you invest Rs 1000 for 20 years , if we assume 12 % return , you would get Approx Rs 9.2 lakhs. Invested amount Rs 2.4 Lakh.

What if I invest 20000 a month in mutual funds for 5 years? ›

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh. However, the returns of INR 5 lakh will turn into INR 17 lakh.

What is the 8 4 3 rule in SIP? ›

Initially, a corpus doubles within 8 years through an average annual return of 12% subsequently another doubling happens for the same period after another 4 years following its initial setting up. Eventually, this would be seen within 15 years as its value doubled again after 3 more years.

Which SIP is best for $2000 per month? ›

SIP 2000 Per Month for 20 years: The Best Plans
Mutual FundRisk InvolvedReturns
Quant Mutual Large and Mid Cap FundVery High23.17%
Mirae Asset Large CapModerate14.7%
HDFC Small Cap FundHigh21.43%
Canara Robeco Emerging Equities FundHigh17.33%
6 more rows
Feb 28, 2024

What if I invest $5,000 in SIP for 20 years? ›

If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.

How to make 1 crore in 15 years through SIP? ›

How to accumulate Rs 1 crore in 15 years. If you want to accumulate Rs 1 crore in 15 years, your SIP investment per month will be Rs 19,819, and you will invest Rs 35.67 lakh overall. After this investment, you will get capital gains of Rs 64.33 lakh, while the total returns will be Rs 1 crore.

What if I SIP $30,000 per month for 5 years? ›

If you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.

Which SIP gives highest return in 15 years? ›

Here's an overview of the top SIP plans that has performed well in the past 15 years;
  • Parag Parikh Flexi Cap Fund Direct-Growth. ...
  • Quant Large and Mid Cap Fund Direct-Growth. ...
  • Mirae Asset Emerging Bluechip Fund Direct-Growth. ...
  • Axis Bluechip Fund Direct Plan-Growth. ...
  • DSP Flexi Cap Fund Direct Plan-Growth.
Jun 10, 2024

What is the 75 5 10 rule for mutual funds? ›

Diversified management investment companies have assets that fall within the 75-5-10 rule. A 75-5-10 diversified management investment company will have 75% of its assets in other issuers and cash, no more than 5% of assets in any one company, and no more than 10% ownership of any company's outstanding voting stock.

What is the 3 5 10 rule for mutual funds? ›

Specifically, a fund is prohibited from: acquiring more than 3% of a registered investment company's shares (the “3% Limit”); investing more than 5% of its assets in a single registered investment company (the “5% Limit”); or. investing more than 10% of its assets in registered investment companies (the “10% Limit”).

What is the 80 20 rule in mutual funds? ›

One way is to allocate 80% of your portfolio to low-risk, diversified assets, such as index funds, and 20% to high-risk, high-reward assets, such as individual stocks or cryptocurrencies. This way, you can balance stability and growth, while limiting your exposure to losses.

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