The financial rule of 15*15*15 is a straightforward yet impactful concept that can ensure your financial stability in the long run. It entails investing 15,000 rupees per month with a growth rate of 15 per cent annually for 15 years. Adhering to this rule can help you build a substantial fund for your retirement or other financial objectives.
To implement this rule, you need to allocate 15,000 rupees every month towards investment. You can opt for a systematic investment plan (SIP) in stocks, mutual funds or any other investment avenue to achieve this. Consistently investing a fixed amount every month can help you make the most of rupee cost averaging and reduce the impact of market fluctuations on your portfolio.
The growth rate of 15 per cent per annum is another crucial aspect of the rule. While it may seem high, it is achievable over the long term through equity investments. The Indian stock market has historically delivered an average annual return of around 15 per cent over the past few decades, which is higher than other asset classes like bonds, fixed deposits and gold.
Finally, the investment horizon of 15 years is also critical for attaining your financial goals. This time frame allows your investments to compound and grow steadily over the long term. By remaining invested for 15 years, you can enjoy the benefits of compounding, wherein your investment returns generate further returns, thereby enhancing the growth of your portfolio.
Assuming that you invest 15,000 rupees per month with a growth rate of 15 per cent per annum, your corpus after 15 years would be approximately 1.38 crore rupees. This is a considerable amount that can help you meet your financial objectives, be it funding your child's education, buying a home, or retiring comfortably.
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