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 15 15 15 formula for mutual fund? ›

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.

What is 15 15 15 investment policy? ›

What is the 15x15x15 rule in mutual funds? The mutual fund 15x15x15 rule simply put means invest INR 15000 every month for 15 years in a stock that can offer an interest rate of 15% on an annual basis, then your investment will amount to INR 1,00,26,601/- after 15 years.

What is the 15 * 15 * 30 rule in mutual funds? ›

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.

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.

How to calculate 15 15 15 rule? ›

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

The 15-15-15 rule for mutual fund investing has three parts to it: 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.

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.

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.

Which mutual fund gives a 15 percent return? ›

Two schemes from Bandhan Mutual Fund, HDFC Mutual Fund, JM Mutual Fund, Kotak Mutual Fund, and SBI Mutual Fund offered more than 15% in three, five, seven, and 10-year horizons.

What is the maximum investment limit in mutual funds in India? ›

Here there is no upper limit on investment. However, when you invest in lump-sum, the timing of the investment matters a lot. The most popular method among retail investors is the systematic investment plan or the SIP approach.

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 20 25 rule for mutual funds? ›

In each subsequent calendar quarter thereafter, on an average basis, the schemes/plans should meet with both the conditions i.e. a minimum of 20 investors and no single investor should account for more than 25% of the corpus of the scheme/plan(s).

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.

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.

How to get 50 lakhs in 5 years with SIP? ›

For example, if an individual plan to accumulate ₹50 lakhs over the tenure of 5 years, assuming the individual invests in a Flexicap fund or a Multicap fund which is giving an annualized return of 15%, then the individual needs to invest ₹55,750 per month for 5 years in order to generate the required corpus.

What is the formula for calculating mutual funds? ›

Alternatively, another formula can be used, where CAGR = (current value/initial value)1/n-1 where n is the number of years. Using elaborate formulae can be time-consuming and laborious and it is far easier to use a simple online mutual fund calculator to compute your returns.

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”).

How do you calculate mutual fund ratio? ›

The expense ratio of a mutual fund scheme is calculated by dividing the total expenses incurred by the AMC by the value of assets under its management (AUM). The components of the expense ratio include fund manager's fee, marketing and distribution expenses, legal/audit costs, and other operating costs.

What is the formula for mutual fund expense ratio? ›

The formula to calculate the expense ratio divides the total annual operating expenses incurred by a mutual fund by the average value of the total assets managed.

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