The 15-15-15 Rule Explained: Turn ₹15,000 Monthly SIP into ₹1 Crore

Summary: Ever wondered how a simple ₹15,000 monthly SIP can turn into ₹1 crore? Discover the 15-15-15 rule — a powerful mutual fund strategy built on discipline, time, and the magic of compounding.

Every payday, most people set aside money for bills, rent and groceries. But what if you made it a habit to pay yourself first? By investing ₹15,000 each month in a Systematic Investment Plan (SIP), you can turn a simple monthly commitment into a powerful wealth-building strategy. The 15-15-15 rule in mutual funds shows how setting aside just ₹15,000 every month can grow into ₹1 crore in 15 years — proving that small, consistent steps can lead to big financial results.

Let’s take a closer look at what the 15-15-15 rule is and how it works

What is the 15-15-15 Rule?

The 15-15-15 rule involves investing ₹15,000 each month for 15 years in a mutual fund that generates an expected annual return of 15%. Following this disciplined approach can potentially help an investor accumulate close to ₹1 crore over time. The simplicity of this method makes it easier for individuals to visualise and plan their long-term financial goals.

The Power of Compounding in Mutual Funds

Compounding means that the returns earned on an investment are reinvested to generate further earnings. In mutual funds, this effect grows stronger the longer one stays invested. The returns in the first few years might appear modest, but as time passes, the interest begins to earn interest, leading to exponential growth. This compounding effect is what turns a regular saving habit into a substantial wealth-building strategy.

₹1 Crore Target: Example of the 15-15-15 Rule in Practice

Let us consider a person earning ₹75,000 per month who decides to invest ₹15,000 monthly (20% of their income) into a mutual fund with an expected annual return of 15%. Over 15 years, the investment can grow close to ₹1 crore, illustrating the strength of consistent investing. This disciplined approach not only builds wealth but also promotes financial planning and goal-oriented investing.

The Impact of Inflation and Return on Investment

Inflation erodes purchasing power over time. For example, after 15 years at a 6% inflation rate, ₹1,000 today would be worth only around ₹417 in future value. However, if the same ₹1,000 is invested in a mutual fund generating 15% annual returns, it can grow to ₹8,138, representing an absolute gain of about 714%. This shows that investing in higher-return assets can protect and grow purchasing power, helping investors stay ahead of inflation.

Estimating the Corpus Using the 15-15-15 Rule

To estimate the amount you could accumulate, consider three main factors—monthly investment amount, expected annual return, and investment duration. Ventura’s online SIP calculator makes it easy to project your potential returns. While the 15-15-15 rule provides a general framework, individuals may adjust their monthly contributions or duration based on personal financial goals, income levels, and market conditions.

Conclusion

The 15-15-15 rule is an easy-to-understand framework that encourages disciplined investing and long-term wealth accumulation. By staying consistent and allowing compounding to work its magic, investors can aim to achieve significant financial milestones through mutual fund investments.