The financial rule of 151515 is a simple but powerful idea that can ensure your long-term financial stability. It requires 15 years of investing 15,000 rupees per month at a growth rate of 15% annually. By following this rule, you can build a large fund for your retirement or other financial goals.
You need to put this rule into action by investing 15,000 rupees each month in investments. This can be accomplished through any investment strategy, including a systematic investment plan (SIP) in stocks, mutual funds, or other investments. You can make the most of rupee cost averaging and lessen the impact of market fluctuations on your portfolio by consistently investing a fixed amount each month.
Another important aspect of the rule is the annual growth rate of 15%. Although it may appear high, equity investments can help you reach it over the long term. Over the past few decades, the Indian stock market has historically outperformed other asset classes like bonds, fixed deposits, and gold with an average annual return of around 15%.
Lastly, the 15-year investment horizon is crucial to achieving your financial objectives. Your investments can compound and grow steadily over the long term during this time period. You can reap the benefits of compounding by remaining invested for 15 years. Compounding is the process by which investment returns generate additional returns, enhancing portfolio growth.
After 15 years, your corpus would be approximately 1.38 crore rupees if you invested 15,000 rupees per month at a growth rate of 15% annually. This is an impressive sum that can assist you with meeting your monetary targets, be it subsidizing your kid’s schooling, purchasing a home, or resigning easily.
