15-15-15 rule in Mutual Funds
What is the 15-15-15 rule in Mutual Funds? ICICIdirect Research Desk 06 May 2024 When you invest in a mutual fund, you must have a goal in place - how much return to expect on investments, and by investing X amount every month - how much corpus you will generate in Y years. Once you have the clarity - your mutual fund investing journey becomes easier. One of the ways to have this done is through the 15-15-15 rule. In this article, we discuss the 15-15-15 rule for mutual funds. Meaning of the 15-15-15 rule in Mutual Funds The 15-15-15 rule for mutual fund investing has three parts to it: The Investment: You should invest Rs 15,000 per month The Tenure: The total of your investment should be 15 years. It means that you will invest Rs 15,000 every month for the next 15 years. The Return: Your expected returns on your investment should be 15% If you can take care of investment and tenure and your portfolio generates a return of 15% in this duration, you will end up with more tha...