Mission 1000 Crorepati’s is based on the 15*15*15 Rule in Mutual Funds.
This rule demonstrates the extraordinary power of Compounding in the Long Term. Our Vision is to make 1000+ Crorepati’s in the span of 15 years by investing just Rs. 15000 per month. Yes, 15k a month for a period of 15 years can make you a crorepati. Our team will help you select the best mutual funds and regularly monitor your mutual fund portfolio for optimum results.
So what exactly is the rule of 15x15x15?
If you want to generate Rs 1 crore as an investor, you can accomplish so by following the 15*15*15 method.
According to the 15*15*15 rule, one can acquire a crore by investing Rs 15,000 per month for 15 years in a stock that yields 15% annual returns. It’s entirely a result of compounding. Before we proceed to understand 15*15*15 rule, let’s first understand compounding.
Mathematically speaking, compounding is defined as, ‘the increase in the value of an investment, due to the interest earned on the principal, as well as the accumulated interest.’
Simply put, it is a strategy that makes your money work for you. It could be regarded as a powerful tool to grow your wealth. You can use the power of compounding to plan your future goals, such as retirement.
Simple interest means you earn interest on your principal. But with compound interest, you earn interest on the principal amount as well as the accumulated interest amount over successive periods. Over time, this interest snowballs into a substantial amount.
Here’s a hypothetical example to highlight the power of compounding.
Vijay and Geeta both invest Rs 50,000 each in an investment avenue that offers an annual interest rate of 10% for 10 years. While Vijay chooses simple interest, Geeta opts for compound interest (read re-invest).
At the end of 10 years, Vijay would make a total corpus of Rs. 1 lakh. On the other hand, Geeta would earn a corpus of Rs. 1.30 lakh.
This is because in Vijay’s case, the interest was calculated only on the initial principal amount of Rs. 50,000. But in Geeta’s case, the interest earned each year was included along with the principal to calculate the interest for the next year. This helped increase her earnings in a big way.
A. Control your expenses
The principle of compounding works in the same way whether you invest Rs. 100 or Rs. 10,000. However, if you invest a substantial amount, the interest you earn can also increase significantly.
The best way to harness the power of compounding is to raise your investments. But if you have a limited income, you can increase your savings by controlling your expenses. One way to do it is to create a budget and identify areas you can reduce your costs each month. Spending wisely and smartly can increase your savings and you can invest more. This way, you stand a chance to reap better returns.
B. Start early
There is nothing like making an early start in investments. Ideally, you should start investing the moment you begin earning. But if you have already crossed that stage, the next best thing is to start investing now. Identify a mutual fund that is in line with your financial goals and start investing. When you start investing early, you can create a solid base for your funds to grow and expand in the future with the help of compounding. If you don’t know how to calculate the return on investment, you can use an online calculator. There are many calculators available that tell you exactly how much you need to start investing today to future goals.
C. Be disciplined
To create a healthy corpus and meet your financial goals on time, it is critical to have investment discipline. Investing regularly at the start of your investment journey can ensure discipline. It is wise not to skip your SIP payments. When you regularly invest month after month, you not only increase your savings but also develop investment discipline. This is a vital habit if you wish to achieve financial success.
D. Learn patience
Most investors look to chase quick returns. But in the attempt to earn quick money, they can make mistakes that could result in big losses. As we have seen, the power of compounding magnifies over time. Hence, it can help to have a long-term approach towards investing. One must invest patiently that could reap healthy returns over time.
You don’t need to be a financial expert to benefit from the power of compounding. Every investor can take advantage of this concept and put it to good use. So, start investing today to enjoy a great future.
When it comes to mutual fund investments, you should not only invest money but also your time, because here time is also money! Long-term investment horizon can do wonders to your mutual fund portfolio and following the 15*15*15 rule will make you a crorepati.
Alpha Investing was started with an aim to eliminate human bias in investing by using AI Technology. We are one of very few institutes who use third party AI tools to help Clients invest with 0% Human Error in Mutual Funds and Equities.
