The 15-15-15 Rule: How to Become a Crorepati?

The 15-15-15 rule is a popular investing rule that states that if you invest Rs. 15,000 per month for 15 years in a mutual fund that generates an average return of 15%, you can become a crorepati.

Here's how it works:

• If you invest Rs. 15,000 per month for 15 years, you will have invested a total of Rs. 27 lakhs.
• Assuming an average return of 15%, your investment will grow to Rs. 1 crore in 15 years.

The power of compounding comes into play here. The interest that you earn in the first year will be added to your investment in the second year. This will increase your investment base, and you will earn more interest in the second year. This process continues over time, and your investment grows exponentially.

Of course, there are no guarantees in the stock market. The returns that you earn may be lower or higher than 15%. However, if you invest for the long term and stay disciplined, you are more likely to achieve your financial goals.

Here are some things to keep in mind when following the 15-15-15 rule:

• Choose a mutual fund that has a track record of generating consistent returns.
• Invest in a diversified mutual fund that invests in a variety of assets, such as stocks, bonds, and money market instruments.
• Stay invested for the long term. Don't panic sell if the market goes down.

The 15-15-15 rule is a simple and effective way to become a crorepati. However, it is important to remember that it is just a rule of thumb. Your actual results may vary depending on the returns that you earn and the amount of time that you invest.

Here are some additional tips for following the 15-15-15 rule:

• Start investing early. The sooner you start investing, the more time your money has to grow.
• Invest regularly. Even if you can only afford to invest a small amount each month, it will add up over time.
• Reinvest your dividends. This will help your money grow even faster.
• Don't panic sell. The stock market will go up and down, but if you stay invested for the long term, you are more likely to come out ahead.

The 15-15-15 rule is a great way to get started on your journey to becoming a crorepati. By following these tips, you can increase your chances of success.