The PPF, or Public Provident Fund, is a popular choice due to the guaranteed rate of return it provides without the usual risks associated with investing. The “15x15x15 rule” states that a person must put away Rs 15,000 per month into a mutual fund for 15 years if they want to see returns of 15% each year.
A PPF account allows for a maximum investment period of 15 years and a maximum annual contribution of Rs 1.5 lakh. The PPF interest rate right now is 7.1%, but it typically ranges between 7% and 8%. However, you should be aware that the straightforward 15x15x15 investment strategy may assist you in becoming a crorepati.
It has some connection to mutual funds. You may already be aware that due to the higher yields offered by the Public Sector Pension Fund, the National Pension System, and fixed deposit accounts, long-term investors are increasingly favoring mutual funds.
The “15x15x15 rule” is the strategy of investing 15 times the expected return of 15 percent for 15 years. As a result, this generalization suggests that you can create a fund of approximately Rs 1 crore by investing Rs 15,000 per month in a mutual fund for 15 years at a return rate of 15%. The principal amount in this case is approximately Rs 27,00,000, and the payout at maturity is Rs 1,01,52,946.
The return may or may not exceed 15% depending on market conditions; consequently, the amount of return may differ. In this instance, let’s say the rate of return is about 13%. At that point, you will have Rs 83,35,219 in your account.
Your total investment would be Rs 28,80,000 if you doubled your monthly contribution from Rs 15,000 to Rs 16,000, and the maturity amount would be either Rs 88,90,900 at a rate of 13% or Rs 1,08,29,810 at a rate of 15%.
Experts concur that, if undertaken after thorough investigation, a long-term investment could easily yield approximately 15%. Still, a return of 10 to 14 percent is significantly better than a PPF or fixed deposit.
