What is the 15×15×15 Rule in Mutual Funds? Read Its Impact on Long-Term Financial Planning

Investing in a mutual fund is a great idea for achieving long-term financial goals. In this article let’s understand the 15×15×15 rule, which will help you to achieve your long-term financial goals. Let’s learn how it works and how much investment we have to make for how long. The rule is basically, one needs to invest Rs. 15,000 per month for 15 years, aiming for 15% average annual returns.

How it Works? 

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To achieve long-term investment returns, invest Rs. 15,000 every month for 15 years through a Systematic Investment Plan (SIP) with the objective of receiving a 15% annual return. This shows how regular investment and compounding can help you accumulate wealth over time.

Giving investors a clear, concrete objective and encouraging discipline has a significant influence on long-term planning, since it helps them see how staying on the market, even in the face of temporary market swings, may result in a large increase in wealth, according to a few reports. It enables you to attain the wealth you want to generate for yourself. As inflation is rising and the lifestyle is changing day by day, it is important to start a strong investment at an early stage of earning income.

Benefits:

It prioritizes long-term goals over daily market fluctuations. This encourages regular savings and investments to avoid irrational choices. These investments also highlight how regular investments grow exponentially over time. This is a great foundation for new investors and simplifies complex financial planning.

(Disclaimer: Given the input is on an information basis, please seek professional advice.)