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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Mutual fund calculator: Your ₹500 per day savings can make you a crorepati (1)

Sangeeta Ojha

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Published: 06 May 2023, 09:40 AM IST

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

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.

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

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).

How much to invest to get 1 crore in 10 years? ›

To earn 1 crore from mutual fund investment in 10 years (annual return is 12%), you need to invest Rs 44,640 every month for the entire tenure.

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

If you can invest Rs 5,000 per month, you can save Rs 1 crore in a little more than 26 years (317 months) at 12% interest rate.

Can mutual funds give 20% returns? ›

9 mutual fund categories that delivered over 20% return in last 5 years - The Economic Times Video | ET Now.

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.

How to save 1 crore in 5 years? ›

Kukreja says since debt funds usually generate lower returns than equity funds for investment horizons of 5 years or more. Thus, assuming an annualised returns of 7 per cent from debt funds, an investor would need to invest Rs 1.40 lakh per month through SIP to create a corpus of Rs 1 crore in 5 years.

What happens if I invest 30000 a month in SIP? ›

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.

How much to invest to make $1,000,000 in 10 years? ›

Now, let's consider how our calculations change if the time horizon is 10 years. If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.

What is the 15 * 15 * 15 rule? ›

The 15-15-15 rule suggests investing 15% of your income for 15 years in a mutual fund with 15% annual returns. Compounding is the process of reinvesting earnings to generate more returns. By following this rule, you can achieve long-term financial goals such as accumulating a substantial corpus for future needs.

How to make 1 crore by investing 20,000? ›

A monthly SIP of Rs 20,000 in Quant Small Cap Fund would have grown to Rs 1.04 crore in the last 10 years. The scheme gave an XIRR of 27.73% in the same period. Quant ELSS Tax Saver Fund would have turned a monthly SIP of Rs 20,000 into Rs 95.38 lakh with an XIRR of 26.04% in the last 10 years.

How much SIP for 1cr? ›

With a SIP amount of Rs 75,000 with 0% annual increase the investor will be able to reach Rs 1 crore in 7 years and 1 month.

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