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Investing Related

What Is The 15*15*15 Rule In Mutual Funds?

Learn about the 15*15*15 Rule for mutual funds and find out more about the magic of compounding.
April 18, 2024

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Wealth creation is a marathon and not a sprint. The 15*15*15 rule shows how true this is. There are no shortcuts to financial freedom or a comfortable retirement. However, there are guidelines and rules that can help you create wealth for the future.

One of these useful mutual funds SIP related rules is the 15*15*15* rule.  It can help you generate up to ₹1 Cr in 15 years with the magic of compounding.

Before we get into what the 15*15*15* rule is, it would be useful to know how compounding works. You can consult a Cube Wealth coach or download a Cube Wealth App.

What Is Compounding?

In investments, compounding means that interest is calculated on the principal amount and the interest already earned. Simply put, you’ll earn interest on interest. 

This leads us to one of the most popular phrases in mutual fund and stock investments, ‘the magic of compounding’

What Is The Magic Of Compounding?

The magic of compounding is not actually magic - it’s simple math. But the utility of compound interest is best represented through the value of our investments over time. Let’s take a look at an example to understand this. You can consult a Cube Wealth coach or download a Cube Wealth App.


Investment X

Investment Y

Interest Type









Value after 1 year



Value after 2 years



Value after 3 years



Value after 4 years



Value after 5 years



The magic of compounding is clear from the above example. This is the main reason why investors tend to prefer stocks, mutual funds and other such assets for the long term.

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What Is The 15*15*15 Rule?

The 15*15*15 rule implies that if you invest ₹15,000 via SIP per month in a fund that gives 15% returns for 15 years, you can generate ₹1 Cr.  

15 (SIP value)

15 (Rate of returns)

15 (Timeframe)


15% returns

15 years

Here is a breakdown of the 15*15*15* rule:

  • Amount invested over 15 years @ ₹15,000 per month: ₹27,00,000
  • Returns generated @ 15% compounded over 15 years: ₹74,53,000
  • Total gains using the 15*15*15* rule: ₹1,01,53,000 Crore

Use our SIP calculator to learn more


Investing for the long term, in general, has several benefits. When you add the magic of compounding to the mix, it becomes even more beneficial.

The 15*15*15* rule is a useful guideline that can serve as a benchmark to evaluate your portfolio. However, a one size fits all approach may not work when it comes to mutual funds. 


1. Is the 151515 Rule a guarantee of financial success?

Ans. No, the 151515 Rule is not a guarantee of success. It is a simplified rule of thumb and does not take into account the risks, market volatility, and individual financial situations. Actual results may vary significantly.

2. Can I modify the rule to fit my financial goals?

Ans. Yes, the 151515 Rule can be adjusted to better align with your specific financial objectives. You can change the investment amount, duration, or expected return to suit your needs.

3. Are mutual funds the only investment option for the 151515 Rule?

Ans. Mutual funds are a popular choice for this rule due to their potential for higher returns and professional management. However, you can adapt the rule to include other investment options, such as stocks, bonds, or real estate, depending on your risk tolerance and financial strategy.

4. How should I choose mutual funds for the 151515 Rule?

Ans. Selecting mutual funds should involve careful consideration of your risk tolerance, investment goals, and time horizon. It's advisable to consult a financial advisor or conduct thorough research to choose funds that align with your needs.


The 151515 Rule is a straightforward guideline aimed at encouraging disciplined, long-term investing in mutual funds or other investment vehicles. While it provides a basic framework for achieving financial goals, it is not a guarantee of success and may need to be adjusted to suit individual financial situations and objectives. Mutual funds can be an excellent choice for this rule due to their potential for returns and professional management, but the key to success lies in consistency and adaptability to your unique financial circumstances. Consulting with a financial advisor can provide valuable insights and help tailor your investment strategy for long-term financial success.

Download the Cube Wealth app today to learn more about picking the best mutual fund investments for the future.

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Priya Bansal
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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