This Golden Rule Of Mutual Funds Can Help You Earn Crores, Find Out More Here
Due to their reliability and yield, mutual funds have grown in
popularity throughout time. Diversifying your assets and inducing reasonably
high liquidity can be achieved by investing your money in a number of
securities. As a result, mutual funds are a popular choice for consumers looking to
invest a small amount of money and get a high rate of return over time.
However, unless investment is supported by market knowledge, strategy, and
understanding, these returns are unlikely to be large.
There are some principles and patterns that can help you earn a good return on
your mutual fund investment, and this article discusses the most popular rules
for all types of investors and investments. The '15*15*15 Rule' is the name of
the rule. Let's have a look at how this rule works. Three variables should initially occupy our thinking spaces while investing in
mutual funds. To begin, you must determine the amount you will invest. Then
there's the amount of time you'll have to wait for the investment to pay off.
The third consideration is the rate at which you expect your funds to grow in
order to accomplish the desired goal.
The 15*15*15 rule is founded on these early assumptions. The rule effectively
connects the number 15 to the three items mentioned above. For example, if your
growth goal is Rs.1 crore, you'll need to invest Rs.15,000 over the course of
15 years and maintain a 15% return on your investment. However, for your
estimates to follow the rule and meet your objectives, they must be changed to
account for inflation.You must be aware of all facets of a rule for it to fully sink into your mind.
After you've learned the foundation, you'll need to understand the backbone
that keeps this rule legal and unbroken. Compounding is at the heart of the
In the world of mutual funds, compounding is a well-known concept. The logic
goes like this: the interest earned in the previous compounding will become an
investment, earning additional interest in the future compounding. This is how
tiny amounts of consistent and periodic investment can provide substantial
returns. In the end, the 15*15*15 rule is a long-term investing strategy that
necessitates not just money but also patience. As a result, you must be patient
and prudent in order to reap the benefits of your investment.
If you enjoyed reading this article and wish to support us by making a contribution or a small donation click on