Forget PPF, follow 15x15x15 investment rule to amass crores; check interest rate, calculator

The Public Provident Fund, PPF, is one of the most trusted investment instruments and gives a risk-free assured return. Investment into PPF comes with a yearly upper limit of Rs 1.5 lakh and with a maximum tenure of 15 years. The PPF interest rate is currently at 7.1% and generally hovers around 7 to 8%. But do you know that there is a 15x15x15 investment rule that can help you become a crorepati with a simple investment routine? This is related to mutual funds. You may be aware that more and more people are preferring to invest in mutual funds for the long term due to better returns compared to PPF or NPS or Fixed Deposits.

15x15x15 Interest Rate, Calculator

The 15x15x15 rule stands for the investment of Rs 15000 per month for 15 years for an anticipated return of 15%. So, according to this rule, if you invest Rs 15,000 monthly for 15 years in a mutual fund, at a return rate of 15%, it will help you accumulate a fund of around Rs 1 crore. In this case, the total investment is around Rs 27,00,000 while the maturity amount is Rs 1,01,52,946.

However, since the market conditions may not be the same and the return rate may be higher or lower than 15%, thus the return amount may vary. Suppose, if the return rate is around 13%, then you will have Rs 83,35,219.

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If you increase your investment to Rs 16,000 monthly from Rs 15,000, the total investment would be Rs 28,80,000 while the maturity amount will be Rs 88,90,900 at the rate of 13% and Rs 1,08,29,810 at the rate of 15%.

According to experts, an investment if made after thorough analysis can easily yield a return of around 15% in longer tenure. Also, even if the rate of return remains between 10-14%, it will be much higher than the PPF or Fixed Deposit.