Ever since people recognized the share market as a good investment opportunities for creating wealth, many people have diverted their fund into the market. Many like a lump sum investment while those who are unable to bring lump sum smount, they started their investment journey with Systematic Investment Plan (SIP).
I was one of them too that makes investment super easy. SIP is basically done on the mutual fund, which is kind of professional approach to share market. Certain professional team make a fort folio and ask the investor to invest in their fund. If consider my words, then it is indirect way of investing in share market. And by doing SIP, each month the predicided fixed amount will invested in that fund for a tenure as chosen in begining. There is no load of investing I lump sum.
indian currency denomination
15x15x15 vs 15x15x30
This rule is very common in share market espevially among the SIP investor. It simply directs that if an investor do a 15,000 INR SIP per month for 15 years which earns average 15% compounded annually. Then the investors will be able to accumulate Rs.1 Crore, against the total investment of 27 lakhs.
Adding further to this rule is 15 X 15 X 30 rule of mutual funds. This states that a Rs.15,000 SIP per month for 30 years, at a 15% compounded annual return, the investor will be able to accumulate 10 crores, against 1 crore if the investment is done for 15 years.
This simply shows that time, and not timing is important for Wealth Creation. The longer the investor holds the money in the market, the more he make the wealth.
Beware Mutual Fund investments are subject to market risk
