Unlock Crores: Master the 7-5-3-1 SIP Rule for Mutual Fund Investment
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Moneycontrol07-02-2026, 14:45

Unlock Crores: Master the 7-5-3-1 SIP Rule for Mutual Fund Investment

  • The '7-5-3-1 Rule' is a powerful SIP strategy for long-term wealth creation in mutual funds.
  • The first '7' signifies investing for at least 7 years to leverage equity market's long-term growth and average 12-15% returns.
  • The '5' recommends diversifying investments across 5 different mutual fund types (large-cap, mid-cap, small-cap, flexi-cap, international) to mitigate risk.
  • The '3' addresses emotional challenges like enthusiasm, fear, and greed, emphasizing discipline to avoid impulsive decisions.
  • The final '1' advises increasing SIP contributions by 10% annually to maximize compounding benefits and counter inflation.

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