Everything You Need to Know About the 15-15-15 Rule in Mutual Funds
Written by Mariyam Sara
3 min read | Updated on October 09, 2025, 18:36 IST
How does a Mutual fund work?
What is the 15-15-15 rule?
Benefits of the 15-15-15 rule in mutual funds
Tips to follow when investing in a Mutual fund
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
One of the main aims of investing is capital appreciation. And one financial instrument that helps investors achieve this goal is a Mutual fund. You must have heard about mutual funds and how it can help you retire worry-free. But to achieve this, you need to have an investing strategy, like the 15-15-15 rule in mutual funds.
In this blog, you will learn in detail about the 15-15-15 rule in mutual funds, and how it benefits you.
How does a Mutual fund work?
Trading and investing in the stock market can be quite risky and complex especially for a novice investor. To avoid the stress of fundamentally analysing and closely monitoring your investments, investors can opt for Mutual funds. If you lack the expertise or time to invest in the stock market, you can still participate in its growth via mutual funds.
Mutual funds in a financial instrument where funds from different investors are pooled. This fund is then managed and invested by experienced fund managers. Instead of shares, you have to buy mutual fund units, and the price of these units change every day mirroring the changes in stock prices. Investing in Mutual funds is a form of passive investment.
What is the 15-15-15 rule?
In mutual funds, there is a SIP (systematic investment plan) option, which allows you to invest a certain amount monthly in the Mutual fund scheme you chose. You can choose your SIP amount according to your investment plan.
In mutual funds, there’s a 15-15-15 rule, which most investors use when investing in mutual funds to have a significant amount of money to be withdrawn at the end of their investing years.
Here’s how the 15-15-15 rule works,
It follows the logic that you must invest ₹15,000 every month for the next 15 years with a return of 15% in a mutual fund of your choice. In mutual funds, your investments are compounded, which provides a higher return. At the end of 15 years, you will have an approximate ₹10.38 Crore.
Benefits of the 15-15-15 rule in mutual funds
Here are the advantages of following the 15-15-15 rule in Mutual funds,
Wealth creation
Mutual funds help investors create wealth by investing in the stock market, debt market and provide compounded returns.
Beginner-friendly approach
People with no experience or knowledge about the stock market can invest in mutual funds using the 15-15-15 rule. This rule is easy and simple to follow for beginners.
Protects against inflation
Inflation means the eroding purchasing power of your money. When you invest in financial assets, you aim to protect your money against inflation. The 15-15-15- rule takes 15% as the target annual return. The key is to not only maintain the value of your money but to earn a return that beats the inflation rate.
Compounded return
Mutual funds provide a compounded return on your investments.
For example, if a Mutual fund has an average return of 15%, and you invest ₹1,80,000 in 1st year, the value of your investments will be ₹2,07,000 (₹27,000 + ₹1,80,000). The next month, you invest more ₹15,000, then the total ₹2,22,000 will be re-invested (₹2,07,000 + ₹15,000) on which you will earn 15% return.
Due to this snowball effect, compounding is called the 8th wonder of the world.
Tips to follow when investing in a Mutual fund
Start early
The key to investing in mutual funds is to start early so that you can earn higher returns and get the desired amount in the future.
Stay consistent
Consistency is crucial when it comes to mutual funds. You will not have massive results overnight, but over the years, let compounding do its magic.
Avoid panic selling
Every economy goes through phases like recession, recovery, and growth. If your mutual fund investment drops during a recession or economic downturn, know that the markets will bounce back up again. That's the cycle.
Diversify your investments
Don't invest in just one type of mutual fund, diversify your investment risk by simultaneously investing in multiple mutual funds with different themes.
A mutual fund is a laid-back method of investing, and using the 15-15-15 rule can help you accumulate enough wealth to retire in the future. Investors can invest in Mutual funds according to their financial goals, like buying a car, children's education, and marriage.
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About Author
Mariyam Sara
Sub-Editor
holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.
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