Make 1 Crore by Following 15*15*15 Mutual Fund Investment Rule
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Do you have a dream of becoming a crorepati? Wondering how you can become one? It’s great that you have come across this blog as it will show you the steps to become one. Mutual fund investments is the most trending investment option that people have started following as they help one earn the best returns compared to the other investment options. There are two modes by which a person can invest which are lumpsum and SIP. First let’s read what SIP is and how it helps in earning more.
SIP or Systematic Investment Plan is the investment mode in which the money is deposited in the form of regular installments with fixed amount for a fixed time. This disciplined investment helps an investor in benefiting from the compounding effect over the period of time. You don’t need to time the market if you are investing in mutual funds through SIP for a long-term. In the following blog, let’s read how you can become a crorepati by investing via SIP and using the 15*15*15 investment rule.
What Is Rule 15*15*15 in Mutual Fund?
Wondering what this 15*15*15 rule is? It is a fact that an investment of Rs. 15000 as SIP for 15 years at the compound annual growth rate of 15% leads to Rs. 1 crore as maturity amount. Yes, all you invest is Rs. 27 lac which is converted over time in an amount more than its triple. This happens as a result of the power of compounding.
How to Make Rs. 1 Crore in 15 years?
Experts at MySIPonline have carefully selected a few schemes across which the monthly SIP investment of Rs. 15000 can be diversified. Below table showcases the schemes and the amount to invest in for 15 years to generate 1 crore. All these schemes belong to equity/aggressive hybrid category and have been chosen because of the high growth scope that comes with them.
| Recommended Investment | |
|---|---|
| Scheme Name | Monthly SIP Amount |
| ICICI Prudential Bluechip Fund (G) | 3000 |
| L&T Midcap Fund (G) | 4500 |
| SBI Small Cap Fund (G) | 5000 |
| ABSL Equity Hybrid ‘95 Fund (G) | 2500 |
If you would have invested in ICICI Prudential Bluechip Fund with monthly SIP of Rs. 3000 for 10 years (this scheme itself being 10 years old), the result would have been as shown in the following table. An overall investment of Rs. 3,60,000 has led to a maturity amount of Rs. 7,92,358 at the rate of 15.07%.
| 10-Years SIP Returns | ||||||
|---|---|---|---|---|---|---|
| Fund Name | Cumulative Investment | Growth Value | Absolute Returns | XIRR | ||
| ICICI Prudential Bluechip Fund | 360,000 | 792,358 | 120.10% | 15.07% | ||
| *As on September 30th, 2018 | ||||||
The investment of Rs. 4500 as monthly SIP for 15 years in L&T Midcap Fund starting 1st October 2003 to 30th September, 2018, would have led to a maturity amount of Rs. 29,15,439 at the rate of 17.29%. The total investment amount being Rs. 7,65,000.
| 15-Years SIP Returns | ||||||
|---|---|---|---|---|---|---|
| Fund Name | Cumulative Investment | Growth Value | Absolute Returns | XIRR | ||
| L&T Midcap Fund | 765,000 | 2,915,439 | 281.10% | 17.29% | ||
| *As on September 30th, 2018 | ||||||
The investment of Rs. 5000 as monthly SIP for 15 years in SBI Small Cap Fund by SBI Mutual Fund has shown the following results. A total investment of Rs. 5,45,000 has led to a maturity amount of Rs. 15,96,055 at the rate of 22.72%.
| 15-Years SIP Returns | ||||||
|---|---|---|---|---|---|---|
| Fund Name | Cumulative Investment | Growth Value | Absolute Returns | XIRR | ||
| SBI Small Cap Fund | 545,000 | 1,596,055 | 192.85% | 22.72% | ||
| *As on September 30th, 2018 | ||||||
SIP investment of Rs. 2500 for 15 years in Aditya Birla Sun Life Equity Hybrid ‘95 Fund has led to maturity amount of Rs. 14,69,050. The total money invested is Rs. 4,50,000 on which the rate of return received with time is 14.44%.
| 15-Years SIP Returns | ||||||
|---|---|---|---|---|---|---|
| Fund Name | Cumulative Investment | Growth Value | Absolute Returns | XIRR | ||
| ABSL Equity Hybrid ‘95 Fund | 450,000 | 1,469,050 | 226.46% | 14.44% | ||
| *As on September 30th, 2018 | ||||||
Hence, it can be said that investment in these schemes will lead to the investment target of Rs. 1 Crore easily. All one needs to do is remain invested and sail through the market ups and downs.
Top SIP Plans to Invest in
Below are the schemes that have been mentioned above. Let’s know some more about them.
ICICI Prudential Bluechip Fund (G)
This scheme by ICICI Prudential Mutual Fund was formerly known as ICICI Prudential Focused Bluechip Equity Fund. Launched on May 23rd, 2008, its investment objective is to help investors earn long-term capital appreciation by investing mainly in the equities of large cap companies.
It should be noted that large cap companies are the top 100 companies in terms of the market capitalization. These are the ones that have stable and good performance graph along with quality management.
| Basic Information | |
|---|---|
| Parameters | ICICI Prudential Bluechip Fund (G) |
| Category | Equity: Large Cap |
| Benchmark | NIFTY 100 TRI |
| Launch Date | 5/23/2008 |
| Asset Size | Rs. 19,836 crore(As on Aug 31, 2018) |
| Fund Managers | Anish Tawakley, Priyanka Khandelwal, and Rajat Chandak |
| Expense Ratio | 2.08% (As on August 31, 2018) |
| Minimum Lumpsum | Rs. 100 |
| Exit Load | 1% for redemption within 365 days |
| Return Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | YTD | Last 3 Years | Last 5 Years | |||
| ICICI Prudential Bluechip Fund (G) | -5.51% | 10.33% | 15.43% | |||
| NIFTY 100 TRI | -3.16% | 9.89% | 14.13% | |||
| Category | -4.21% | 8.36% | 13.26% | |||
| As on October 05th, 2018 | ||||||
| Risk Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | SD | Beta | Sharpe | |||
| ICICI Prudential Bluechip Fund (G) | 13.48 | 0.94 | 0.48 | |||
| NIFTY 100 TRI | 14.17 | - | 0.47 | |||
| Category | 14.30 | 0.99 | 0.36 | |||
| As on September 30th, 2018 | ||||||
Who Should Invest?
This scheme is apt for investors willing to invest in the equities of top 100 companies. It should be noted that the risk involved on the principal amount invested will be moderately high.
L&T Midcap Fund (G)
The investment objective of L&T Midcap Fund an open-ended scheme is to help investors earn long-term capital appreciation by investing mainly in the equity and equity related instruments of mid cap stocks. Mid cap companies are the top 101 to 250 companies in terms of the full market capitalization.
| Basic Information | |
|---|---|
| Parameters | L&T Midcap Fund (G) |
| Category | Equity: Mid Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Launch Date | 8/9/2004 |
| Asset Size | Rs. 3095 crore (As on Sept 30, 2018) |
| Fund Managers | Soumendra Nath Lahiri and Vihang Naik |
| Expense Ratio | 2.35%(As on August 31, 2018) |
| Minimum Lumpsum | Rs. 5000 |
| Exit Load | 1% for redemption within 365 days |
| Return Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | YTD | Last 3 Years | Last 5 Years | |||
| L&T Midcap Fund (G) | -17.95% | 11.59% | 26.02% | |||
| NIFTY Midcap 100 TRI | -22.21% | 8.31% | 19.21% | |||
| Category | -19.02% | 6.81% | 22.10% | |||
| As on October 05th, 2018 | ||||||
| Risk Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | SD | Beta | Sharpe | |||
| L&T Midcap Fund (G) | 17.54 | 0.89 | 0.45 | |||
| NIFTY Midcap 100 TRI | 19.03 | - | 0.31 | |||
| Category | 17.55 | 0.89 | 0.21 | |||
| As on September 30th, 2018 | ||||||
Who Should Invest?
Investors interested in investing in the owner’s fund of mid cap companies may invest in this fund by L&T Mutual Fund.
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SBI Small Cap Fund (G)
This scheme by SBI Mutual Fund aims to generate long-term capitalization by investing in the equity and equity related instruments of small-cap companies. These companies are the 251st and more in terms of the full market capitalization.
| Basic Information | |
|---|---|
| Parameters | SBI Small Cap Fund (G) |
| Category | Equity: Small Cap |
| Benchmark | S&P BSE Small Cap TRI |
| Launch Date | 9/9/2009 |
| Asset Size | Rs. 1067 crore(As on Aug 31, 2018) |
| Fund Managers | R. Srinivasan |
| Expense Ratio | 2.74%(As on August 31, 2018) |
| Minimum Lumpsum | Rs 5,000 |
| Exit Load | 1% for redemption within 365 days |
| Return Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | YTD | Last 3 Years | Last 5 Years | |||
| SBI Small Cap Fund (G) | -23.49% | 14.88% | 31.06% | |||
| NIFTY Smallcap 250 TRI | -31.12% | 5.43% | 20.61% | |||
| Category | -24.00% | 8.77% | 23.61% | |||
| As on October 05th, 2018 | ||||||
| Risk Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | SD | Beta | Sharpe | |||
| SBI Small Cap Fund (G) | 20.54 | 0.82 | 0.57 | |||
| NIFTY Smallcap 250 TRI | 22.97 | - | 0.15 | |||
| Category | 19.76 | 0.83 | 0.29 | |||
| As on September 30th, 2018 | ||||||
Who Should Invest?
Highly aggressive investors who are willing to invest in a small cap fund by SBI Mutual Fund may add it to their portfolio. The risk involved in SBI Small Cap Fund is high on the principal amount invested.
ABSL Equity Hybrid 95 Fund (G)
This open-ended scheme invests in a mixture of instruments consisting of equity, its related instruments, debt and money market instruments. The investment objective of ABSL Equity Hybrid 95 Fund by Aditya Birla Sun Life Mutual Fund is to help investors earn long-term capital appreciation along with consistent income.
| Basic Information | |
|---|---|
| Parameters | ABSL Equity Hybrid ‘95 Fund (G) |
| Category | Hybrid: Aggressive Hybrid |
| Benchmark | CRISIL Hybrid 35+65 Aggressive |
| Launch Date | 2/10/1995 |
| Asset Size | Rs. 15,001 crore(As on Aug 31, 2018) |
| Fund Managers | Dhaval Shah, Mahesh Patil, and Pranay Sinha |
| Expense Ratio | 2.29%(As on August 31, 2018) |
| Minimum Lumpsum | Rs. 500 |
| Exit Load | For units in excess of 15% of the investment,1% will be charged for redemption within 365 days |
| Return Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | YTD | Last 3 Years | Last 5 Years | |||
| ABSL Equity Hybrid ‘95 Fund (G) | -9.10% | 7.70% | 15.45% | |||
| VR Balanced TRI | -0.25% | 9.06% | 12.08% | |||
| Category | -7.38% | 7.60% | 14.50% | |||
| As on October 05th, 2018 | ||||||
| Risk Analysis | ||||||
|---|---|---|---|---|---|---|
| Scheme Name | SD | Beta | Sharpe | |||
| ABSL Equity Hybrid ‘95 Fund (G) | 11.18 | 0.89 | 0.27 | |||
| VR Balanced TRI | 11.42 | - | 0.45 | |||
| Category | 11.25 | 0.90 | 0.27 | |||
| As on September 30th, 2018 | ||||||
Who Should Invest?
This scheme by Aditya Birla Sun Life Mutual Fund is for investors who wish to earn long-term capital appreciation on their money in addition to the regular income. It is for aggressive investors as the risk involved is moderately high.
Points to be Kept in Mind While Investing
There are a number of reasons which an investor should keep in mind while selecting the schemes for investing. Major ones are mentioned below.
- Risk Appetite - An investor should be aware of his own risk-bearing capability before selecting a scheme. There are a number of options available in the market to choose from, with diverse risk involvement.
- Past Performance - Always remember to go through the past performance of the scheme. Although these figures are merely indicative and may change with the market volatility or other factors, they still provide an idea.
- Asset Allocation - Asset allocation plays a major role in how a scheme might perform as it is on their individual performance that the entire performance depends. While investing in, the right assets can improve the return rate; whereas, at the same time, wrong asset investment can effect it negatively.
- Investment Strategies - It is very important to find out about the fund managers and the strategies they follow. The experience of how investments have performed under their guidance should also be studied.
The End Note
All the schemes mentioned in this blog involves high risk which means that they are best for the aggressive investors to invest in. It is estimated that with the improvement in the correction phase, their returns are likely to increase. So what are you waiting for? Invest in these mutual funds and become a crorepati. You may invest via MySIPonline which is a leading platform with a simplified procedure. If you have any investment related query, you can post the same here.
Must Read:
Top SIP Plans to Invest with Rs. 2000
Best SIP Plans 2018 for New Investors
Best Mutual Funds to Start SIP with Rs 1000
Invest in the Best Mutual Funds
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
Best Funds
| Top funds | Risk | Manager |
|
|
|---|---|---|---|---|
| ICICI Prudential Bluechip Fund - Growth | Very High | Anish Tawakley, Vaibhav Dusad, Sharmila D'mello | Invest | |
| SBI Small Cap Fund Regular Growth | Very High | Rama Iyer Srinivasan, Pradeep Kesavan, Mohan Lal | Invest | |
| Aditya Birla Sun Life Equity Hybrid 95 Fund - Regular Plan-Growth | Very High | Mahesh Patil, Chanchal Khandelwal, Harshil Suvarnkar, Dhaval Joshi | Invest |
