During the recent bull run, mutual funds have emerged as the go-to alternative for investors with excess cash looking to grow their wealth. While the present market conditions may cause some mutual fund investors to wonder if they should sell their shares and take their profits or continue with their existing SIPs, the market's bullish or negative attitude should never cause you to sell your investments.
Rule of 15/15/15-
A simple guideline that will help you determine three components of your mutual fund investment are:
Savings required to meet your financial goals on a monthly basis, expressed as a dollar amount.
How long you'd have to commit to making an investment.
In order to accomplish a goal of Rs. 1 crore, you'd need to see your money increase at a certain rate.
This is one of the most fundamental guidelines for becoming a millionaire as an investor. Investing Rs 15,000 monthly for 15 years in an investment capable of yielding 15% annual return will net you Rs 1,00,27,601 at the conclusion of the 15-year term, according to this calculation. Despite making a profit of 73 lakh rupees, you only invested 27 lakh rupees.
Furthermore, your acquired wealth will skyrocket if you keep it going for another 15 years. The 15*15*30 rule now allows you to amass a whopping Rs. 10,38,49,194 (approximately) (more than Rs 10 crore). If you put in just Rs 27 lakh, you'll make Rs 9.84 crore.
Comments