Analysts have devised a strategy to reach the first crore using SIP. The equity mutual fund formula of 15-15-15 also reveals how to make your first Rs. 1 crore in the stock market. Mutual funds are subject to market risk since they have indirect exposure to the stock market.
Mutual fund managers trade stocks on behalf of mutual fund clients and manage their portfolio assets. Mutual funds are popular among investors because they can help them fight inflation over time. According to tax and financial experts, long-term stocks investors should remember the guideline that indicates they may expect a 15% return on their investment. This means, that if a mutual fund SIP investor contributes $15,000 each month for 15 years, the maturity amount might be $1 crore.
It assists an investor in maximizing their long-term profit. I recommend that investors recall the 15-15-15-15 rule, in which everything remains the same but a 15% yearly step-up in monthly SIP amount is added. By doing so, an investor may earn their first 1 crore from the stock market in 12 years, and after 15 years, they can expect to get roughly 2 crores as a maturity sum. As a result, the additional 15% yearly step increase will enable an investor to earn Rs. 1 crore from the stock market in just three years.
Analysts advise investors to grow their monthly SIP in lockstep with their yearly income since this helps them maximize their long-term returns. In 12 years, an investor may earn their first 1 crore from the stock market, and in 15 years, they can expect to get roughly 2 crores as a maturity amount. The additional 15% yearly step increase will enable an investor to earn Rs. 1 crore in the stock market in the following three years.
According to experts, SBI Small Cap Fund — Regular Growth and Aditya Birla Sun Life Mid Fund Plan are two equity mutual funds that can assist an investor make their first $1 crore.