What is the 15*15*15 Rule In Mutual Funds
The 15*15*15 rule in mutual funds is a powerful investment principle that
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Understanding the 15 15 15 Rule
The 15 15 15 rule suggests that if you invest ₹15,000 every month for 15 years in a mutual fund that offers 15% annual returns, you can accumulate over ₹1 crore. Let’s break it down:
- Monthly SIP: ₹15,000
- Investment Tenure: 15 years
- Expected Returns: 15% annually
At the end of 15 years, your corpus will be approximately ₹1,00,27,601. But here's where it gets exciting. If you continue this investment for another 15 years with the same return rate, your corpus can grow to ₹10.38 crore. That’s the real power of compounding.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| SBI Life |
13.36% |
13.07% |
|
| HDFC Life |
19.5% |
15.86% |
|
| Axis Max Life |
22.7% |
22.03% |
|
| ICICI Prudential Life |
16.12% |
14.63% |
|
| Tata AIA Life |
29% |
23.3% |
|
| Bajaj Life |
17.29% |
14.13% |
|
| Birla Sun Life |
19.5% |
16.12% |
|
| PNB MetLife |
31.41% |
24.68% |
|
| Canara HSBC Life |
13.03% |
11.54% |
|
| Star Union Dai-ichi Life |
15.2% |
- |
|
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Last updated: Nov 2025
The Power of Compounding in Mutual Funds
Compounding means earning returns not just on your principal but also on the returns you’ve already earned. It creates a snowball effect the longer you stay invested, the more your wealth grows.
For instance, by continuing your ₹15,000 SIP beyond 15 years:
- The first ₹1 crore grows without additional effort.
- With just ₹27 lakh of additional investment over the next 15 years, your wealth could multiply 10x to over ₹10 crore.
This is why starting early, staying consistent, and letting time do the magic is critical in mutual fund investing.
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Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
13.06%
Equity Pension
15.9%
Opportunities Fund
19.1%
Pension Growth Super
13.24%
Opportunities Fund
20.99%
Multi Cap Fund
14.21%
Accelerator Mid-Cap Fund II
15.9%
Multiplier
14.71%
Frontline Equity Fund
18.41%
Pension Mid Cap Fund
11.24%
Equity II Fund
14.8%
US Equity Fund
15.09%
Growth Opportunities Plus Fund
11.69%
Equity Top 250 Fund
14.14%
Future Apex Fund
12.11%
Pension Dynamic Equity Fund
14.5%
Pension Enhanced Equity
How Does Compounding Actually Work?
Let’s look at a simple example of how the power of compounding works. Imagine two friends, X and Y:
- Y chooses a safe investment offering 7% interest.
- X chooses equity mutual funds with a long-term return potential of 15%.
Both invest ₹10,000/month for 10 years. While Y earns steady but modest returns, X faces market ups and downs, and sometimes his portfolio even falls. But over time, thanks to market recovery and growth, X’s investments outperform Y's significantly.
After 10 years:
- Y’s portfolio: ₹39.6 lakh (7% return)
- X’s portfolio: ₹1.13 crore (15% return)
Despite volatility, X ends up with nearly three times more than Y, all because of patience, discipline, and compounding.
Key Takeaways from the 15*15*15 Rule
- Start Early: The earlier you begin, the more time compounding has to work its magic.
- Be Consistent: Even in market downturns, stick to your SIP investments because it will help you in the long run.
- Think Long-Term: Wealth creation is a marathon, not a sprint.
- Choose Smartly: Pick mutual funds with strong track records and low expense ratios.
- Avoid Panic: Markets fluctuate, but long-term trends typically favour patient investors.
Is the 15*15*15 Rule Right for You?
Absolutely, if you're committed to long-term wealth building. The 15*15*15 rule in mutual funds shows that you don’t need to be rich to become wealthy. All you need is ₹15,000 per month, patience for 15 years, and a disciplined approach to achieve 15% returns. While returns aren’t guaranteed, equity mutual funds have historically delivered strong long-term performance.
Remember: “Paisa paise ko kheechta hai” money attracts more money when invested wisely. Be like Investor X: consistent, focused, and future-ready.
FAQs
-
Is it realistic to expect 15% returns annually?
While not guaranteed, historically equity mutual funds have delivered around 12–15% annually over the long term. Staying invested and choosing the right fund is key.
-
What happens if I invest for 30 years instead of 15?
If you continue the same SIP for another 15 years, your ₹1 crore can grow to ₹10 crore, all thanks to compounding over a longer period.
-
Can I start with a smaller SIP than ₹15,000?
Yes, even ₹5,000 or ₹10,000 SIPs can grow substantially over time. The principle remains the same; invest consistently for the long term.
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Is the 15 15 15 rule suitable for all investors?
It’s ideal for those seeking long-term wealth creation. However, investors should consider their financial goals, risk appetite, and investment horizon.
