The 15-15-15 rule of mutual funds: Joys of Compounding
“Compound interest is the 8 th wonder of the world. He who understands it earns it and he who doesn’t pays it.” – Albert Einstein Power of Compounding Albert Einstein rightly said that the world's 8th wonder is compound interest. Compounding is a very strong concept. This is because you still earn interest on the interest of your invested money. The investment value continues to grow at a geometric (always increasing) level than at an arithmetic (straight-line) rate. Over a period of time, the capital continues to accumulate. Compounding is also a phenomenon of a long-term existence. And in the long run, I mean 15-30 years. Investing early is as important as investing wisely. Just a small amount can quickly increase your earnings. Let's see how you can earn Rs 10 Cr from an Rs 15 K investment. 15*15*15 Rule Rs 15,000 SIP will give you the return of Rs 1 Crore at maturity at an estimated 15 percent CAGR for 15 years. You can get Rs 1 Crore with just an investment of Rs 27 l...