The PPF, or Public Provident Fund, is a popular choice because of the guaranteed rate of return it provides without the usual investing risks. The maximum annual contribution to a PPF account is Rs 1.5 lakh, and the maximum investment period is 15 years. Presently, the PPF interest rate is 7.1%, and it typically ranges from 7% to 8%. However, you should know that the simple 15x15x15 formula for investing may help you become a crorepati. It's connected to mutual funds in some way. You may already be aware that long-term investors are increasingly favouring mutual funds over the Public Sector Pension Fund, the National Pension System, or fixed deposit accounts owing to the higher yields available via the former three options.
Investing Rs 15000 every month for 15 years at an expected return of 15% is referred to as the "15x15x15 rule." As a result, this rule of thumb suggests that a monthly investment of Rs 15,000 in a mutual fund for 15 years at a return rate of 15% can help you create a fund of roughly Rs 1 crore. Here, the principal is valued at around Rs 27,00,000, while the payout at maturity is Rs 1,01,52,946.
Market circumstances may cause the return rate to be greater or lower than 15%, hence the amount of the return may differ. In this case, let's assume that the rate of return is roughly 13%, at which point you'll have Rs 83,35,219.
If you double your monthly contribution from Rs 15,000 to Rs 16,000, your total investment would be Rs 28,80,000, and the maturity amount will be either Rs 88,90,900 at a rate of 13% or Rs 1,08,29,810 at a rate of 15%.
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Experts agree that a long-term investment might easily bring in a return of roughly 15% if it is undertaken after rigorous investigation. A return of 10-14% is still much better than the PPF or a fixed deposit.
