DelhiDesk Investing in mutual funds through a Systematic Investment Plan (SIP) can provide compounding benefits in the long term. The 15x15x15 rule of mutual funds involves investing Rs 15,000 per month for 15 years in a fund that offers a 15% annual return, resulting in a corpus of Rs 1 crore. By continuing this investment strategy for another 15 years, the corpus can grow to Rs 10 crore. Compounding refers to the process of earning interest on interest, leading to exponential growth in investments over time. Time, rather than timing, is crucial for wealth creation. The Securities and Exchange Board of India (SEBI) is considering introducing a performance-linked incentive for mutual funds and will release a consultative paper on the matter.
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Here is the news bullets sorted by DelhiBreakings.com team.
– Mutual fund SIP helps get compounding benefits in the long term
– Majority of mutual fund SIP investors go for long-term investments
– The 15x15x15 rule: invest 15,000 per month for 15 years in a fund that offers a 15% annual return to accumulate 1 crore
– Compounding refers to earning interest on your interest, leading to exponential growth in investments over time
– The 15 X 15 X 30 rule: invest 15,000 per month for 30 years at 15% compounded annual return to accumulate 10 crore
– Time, not timing, is important for wealth creation
– SEBI is looking at introducing a performance-linked incentive for mutual funds and will soon be coming out with a consultative paper on the same.
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