How to Build a Rs 1 Crore Corpus: The 15/15/15 Rule of Mutual Fund Investing

Learn how to build a Rs 1 crore corpus by investing Rs 15,000 monthly with the 15/15/15 rule in mutual funds. Achieve your financial goals with SIPs.

Can you become a crorepati by investing Rs 15,000 each month? While it may seem daunting, it’s absolutely achievable with the right strategy and discipline. By following a smart investment approach, you can build a corpus of Rs 1 crore over time. If you’ve been wondering, “How can I make 1 crore?” then keep reading to learn how to invest smartly through a Systematic Investment Plan (SIP).

Understanding the 15/15/15 Rule: How to Build Rs 1 Crore

To accumulate Rs 1 crore by investing Rs 15,000 monthly, you need to follow the 151515 rule. This is a simple yet effective formula for investing in mutual funds via SIPs. The rule suggests that by investing Rs 15,000 every month for 15 years in a mutual fund with an annual return of 15%, you could reach your Rs 1 crore goal.

Achieving a 15% Return: How to Choose the Right Mutual Fund

To achieve the target return of 15%, equity mutual funds are your best bet. Historically, equity funds have delivered impressive returns:

Equity Large-and-Mid Cap Funds: Averaged 15.93% over the last 10 years.
Equity Flexi-Cap Funds: Provided a 14.65% return in the same period.

These returns may be higher than those of debt or fixed-income products, but equity mutual funds carry more risk. So, while they are effective in beating inflation, they may fluctuate more in the short term.

Consistency Is Key

Consistency is critical to building your Rs 1 crore corpus. By investing Rs 15,000 every month for 15 years and sticking to your plan, your investment will grow steadily, especially if it consistently generates a 15% annual return.

The Power of Compounding

The longer you stay invested, the more your wealth will grow thanks to compounding. Compounding works wonders over time, especially with regular contributions. Even if the returns are modest, consistent investment over a long period will lead to substantial wealth creation. The frequency of compounding (monthly versus annually) also plays a significant role in increasing the value of your investments.

The 15/15/15 rule is a straightforward and effective method for creating a Rs 1 crore corpus through SIPs. By investing Rs 15,000 each month for 15 years in equity mutual funds, you can harness the power of compounding and generate strong returns. Just stay consistent and patient with your investments, and you’ll be on your way to becoming a crorepati.

Disclaimer: All values, calculations and our content are based on our own assumptions /thoughts /information’s available on internet. Please consult with your financial advisor before making any investment decisions based on this article. Vijay Broadcast is not responsible for any Profits / Losses. Thank you for reading, and we look forward to sharing another interesting article with you soon!

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How to Build a Rs 1 Crore Corpus: The 15/15/15 Rule of Mutual Fund Investing