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SIP calculator: For a mutual funds investor, there are various rules to maximise one's return. 15 x 15 x 15 rule of mutual funds is one of them. In this mutual funds SIP (Systematic Investment Plan) investment, an investor can become a crorepati by investing ₹15,000 per month for tenure of 15 years. This rule says that mutual fund return would be 15 per cent if an investor has such a long-term time horizon. However, mutual fund calculator suggests that one can double one's maturity amount and get more than ₹2 crore in 15 years if annual step-up of 15 per cent is maintained.
Elaborating upon 15 X 15 X 15 rule of mutual funds; Amit Gupta, MD at SAG Infotech said, "It is one of the most impressive mutual fund investment rules in which an investor can become a crorepati in 15 years. The rule is ₹15,000 monthly SIP at 15 per cent annual return in 15 years for getting a corpus of more than ₹1 crore."
However, Amit Gupta of SAG Infotech advised mutual fund investors to increase one's investment amount with increase in one's annual income. He advised investor to remember 15 X 15 X 15 rule of mutual funds with an additional 15, where this additional 15 stands for 15 per cent annual step-up in one's monthly investment amount.
Speaking on the benefit of this annual SIP step-up, Amit Gupta said, "A step-up SIP can help you combat inflation and earn inflation-adjusted returns. It also helps you build better capital and increasing the SIP increases the power compounding. When you are investing a greater amount every year, the returns you are earning will also be higher. This may enable you to reach your target before the original target date as you will be able to earn more and save more."
As per the mutual fund calculator, if an investor increases one's monthly SIP by 15 per cent annually, then 15 x 15 x 15 rule of mutual funds will enable the investor to create ₹2,07,30,046 or ₹2.07 crore, almost double of the maturity amount using flat 15 x 15 x 15 rule of mutual funds.
On mutual fund SIP plans that can give 15 per cent return in 15 years; Vinit Khandare, CEO & Founder at MyFundBazaar India Private Limited listed out the following SIP plans that may hold well for 15 X 15 X 15 rule of mutual funds:
Small-cap Fund: SBI Small Cap Fund - Regular Growth; CAGR - 20.66 per cent.
Mid-cap Fund: Aditya Birla Sun Life Mid Fund - Plan - Growth Regular Plan; CAGR - 15.26 per cent.
Large-cap Fund: HDFC Top 100 Fund - Regular Plan - Growth; CAGR - 15.38 per cent.
