Mutual fund calculator: Your ₹500 per day savings can make you a crorepati (2024)

Mutual fund calculator: Investing in mutual funds via Systematic Investment Plan (SIP) route. It's a well-known fact that in the long term, mutual fund SIP helps an investor get compounding benefits. So, the majority of mutual fund SIP investors go for long-term investments. So, if your goal as an investor is to accumulate ₹1 crore, there is a simple and effective strategy that you can follow- the 15x15x15 rule.

What is the 15x15x15 rule of mutual funds?

The 15x15x15 rule of mutual funds involves investing ₹15,000 per month for a period of 15 years in a fund that offers a 15% annual return.

Well, it simply says that if one does a 15,000 rupees SIP per month for 15 years which earns an average 15% compounded annual returns, You are able to accumulate ₹1 crore (against your total investment of only 27 lakhs ), said tax and investment expert Balwant Jain.

What is compounding?

Compounding refers to the process of earning interest on your interest, leading to exponential growth in your investments over time.

“By investing just ₹15,000 per month for 15 years in a stock that offers a 15% annual return, you can amass a corpus of ₹1,00,27,601. In other words, you would have invested only ₹27 lakh and earned a profit of ₹73 lakh," said Amit Gupta, MD, SAG Infotech.

15 X 15 X 30 rule of mutual funds

Furthermore, if you continue this investment strategy for another 15 years, your corpus will grow exponentially.

The 15 X 15 X 30 rule of mutual funds? If u do a 15,000 Rs.SIP per month for 30 years (instead of 15 years as earlier), at a 15% compounded annual return, You will be able to accumulate 10 CRORE against 1 crore if u invest for 15 years), said Balwant Jain.

This shows that time, and not timing is important for Wealth Creation, added Jain.

Meanwhile, capital markets regulator Sebi is looking at introducing a performance-linked incentive for mutual funds and will soon be coming out with a consultative paper on the same, news agency PTI reported.

"… we are trying to focus. Shortly, you will see once we come out with a consultative paper where we will try to link performance and try to see surrounding that performance what incentive structure we can create," Kumar said while speaking at an MF summit organised by industry lobby CII.

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ABOUT THE AUTHOR

Sangeeta Ojha

A business media enthusiast. Writes on personal finance, business and banking.

FAQs

How to make 1 crore in mutual funds? ›

The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund. Consistent adherence to this strategy can lead to significant wealth accumulation.

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How can I become a Crorepati by mutual fund? ›

15 years: The ideal period to invest is 15 years. Investing for the long term consistently allows you to reap the full benefits of compound interest. ₹15k SIP: A monthly investment of ₹15,000 is advised. This amount is negotiable based on your goals and financial situation.

How much do I need to invest to get 1 crore in 5 years? ›

Thus, a combined monthly contribution of Rs 1.30 lakh would create a corpus of over Rs 1 crore in 5 years. Kukreja says an investor can split their equity SIP contributions equally between large-, multi asset, and flexi cap funds.

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How will compounding work if you are investing RS 500 month? ›

Compounding in SIP: How to get more than Rs 21 lakh

For example, if you started investing with Rs 500, then next year you will have to invest 10 per cent of Rs 500 i.e. Rs 50, i.e. Rs 550. In the next year, 10 per cent of Rs 550 i.e. Rs 55 will have to be added to it.

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What is the return of mutual fund in 10 years? ›

Name of the fund	5-year returns (in %)	10-year returns (in %)
Baroda BNP Paribas Large Cap Fund	79.94	151.79
Nippon India Large Cap Fund	96.83	168.79
Canara Robeco Bluechip Equity Fund	70.27	149.94
ICICI Prudential Bluechip Fund	83.46	154.84

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2 days ago

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How to make 1 crore by investing 5000 per month? ›

In 26 years, you can accumulate a Rs 1 crore corpus if you begin investing Rs 5,000 per month in mutual fund SIP. Here the interest rate, let's assume, remains constant at 12 per cent per annum.

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Is 30 crore enough to retire in India? ›

In other words, your retirement corpus should be at least 30 times your annual expenses of today. For example, if you are 50 years old and your monthly expenses are Rs 75,000 (or annually Rs 9 lakh), then as per the 30X rule, you need 30 times Rs 9 lakh to retire comfortably. That is Rs 2.70 crore.

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How much do I need to invest a month to be a millionaire in 5 years? ›

Suppose you're starting from scratch and have no savings. You'd need to invest around $13,000 per month to save a million dollars in five years, assuming a 7% annual rate of return and 3% inflation rate. For a rate of return of 5%, you'd need to save around $14,700 per month.

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How much should I invest to get 10 crore in 20 years? ›

For instance, more conservative investor aiming for 9% yearly return may need to set aside approximately ₹1.5 lakhs every month to reach ₹10 crore target in 20 years. On other hand, more aggressive investor targeting 12% annual return may require monthly SIP of around ₹1 lakh.

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How many years it will take you to double your money if you invest $500 at an interest rate of 8% per year? ›

For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

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How much is $5000 for 5 years in SIP? ›

How much is Rs. 5,000 for 5 years in SIP? 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.

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How much money will I have if I invest 500 a month for 10 years? ›

What happens when you invest $500 a month

Rate of return	10 years	20 years
4%	$72,000	$178,700
6%	$79,000	$220,700
8%	$86,900	$274,600
10%	$95,600	$343,700

Nov 15, 2023

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How much SIP for 1cr? ›

With a SIP amount of Rs 30,000 with 0% annual increase, the investor will be able to reach Rs 1 crore in 12 years and 4 months. With a SIP amount of Rs 40,000 with 0% annual increase, the investor will be able to reach Rs 1 crore in 10 years and 6 months.

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What is the 8 4 3 rule in SIP? ›

The rule of 8-4-3 when it comes to compounding indicates a style of investment that accelerates growth with time. 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.

What is the 15-15-15 rule in mutual funds? ›

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

The Investment: You should invest Rs 15,000 per month. The Tenure: The total of your investment should be 15 years. It means that you will invest Rs 15,000 every month for the next 15 years. The Return: Your expected returns on your investment should be 15%

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Where can I get a 10% return? ›

Summary of the best investments with 10% ROI

Private credit.
Individual stocks.
Real estate.
Fine art.
Debt.
A business.
Private startups.
Cryptocurrencies.

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Jan 4, 2024