Top 5 Benefits of Investing in HDFC Mutual Fund SIP
The best way to manage wealth and ensure long-term financial security is by investing your savings in a smart way. Although in today’s day and age there is a wide range of investment options available in the market, it often gets confusing to choose the best one according to your budget, requirement, and preferences.
-
Home
-
SIP Investment
- Top 5 Benefits of Investing in HDFC Mutual Fund SIP
- Insurance Companies
- Mutual Funds
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 3 Years | 5 Years | 10 Years | |
| Top 200 Fund Tata AIA | 24.74% | 31.65% |
20.12%
View Plan
|
|
| Virtue II PNB Metlife | 22.28% | 27.93% |
18.14%
View Plan
|
|
| Pure Equity Birla Sun Life | 20.86% | 24.74% |
16.69%
View Plan
|
|
| Growth Opportunities Plus Fund Bharti AXA | 17.96% | 22.2% |
16.15%
View Plan
|
|
| Pure Stock Fund Bajaj Allianz | 19.31% | 22.69% |
15.67%
View Plan
|
|
| Diversified Equity Fund HDFC Standard | 15.67% | 20.12% |
15.12%
View Plan
|
|
| Growth Super Fund Max Life | 15.78% | 19.21% |
13.57%
View Plan
|
|
| Equity Fund SBI | 15.88% | 18.78% |
13.1%
View Plan
|
|
| Multi Cap Growth Fund ICICI Prudential | 16.58% | 19.08% |
12.87%
View Plan
|
|
| Growth Plus Fund Canara HSBC Oriental Bank | 13.79% | 15.67% |
11.3%
View Plan
|
|
Updated as of Aug 2024
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 3 Years | 5 Years | 10 Years | |
| Active Fund QUANT | 24.92% | 31.48% |
21.87%
|
|
| Flexi Cap Fund PARAG PARIKH | 20.69% | 26.41% |
19.28%
|
|
| Large and Mid-Cap Fund EDELWEISS | 22.34% | 24.29% |
17.94%
|
|
| Equity Opportunities Fund KOTAK | 24.64% | 25.01% |
19.45%
|
|
| Large and Midcap Fund MIRAE ASSET | 19.74% | 24.32% |
22.50%
|
|
| Flexi Cap Fund PGIM INDIA | 14.75% | 23.39% |
-
|
|
| Flexi Cap Fund DSP | 18.41% | 22.33% |
16.91%
|
|
| Emerging Equities Fund CANARA ROBECO | 20.05% | 21.80% |
15.92%
|
|
| Focused fund SUNDARAM | 18.27% | 18.22% |
16.55%
|
|
Updated as of July 2024
One can’t avoid talking about mutual fund^^ SIP (Systematic Investment Plan) when talking about some of the smartest investment options. SIP is a simple method of investing a fixed amount of money regularly in mutual fund schemes at a pre-determined date for a specific period of time in order to create wealth over a period of time.
A large number of experts and investment gurus consider it to be the most convenient way to invest their money in the market and earn good returns. And when it comes to mutual fund SIP providers, HDFC remains the clear winner.
A large number of investors pin down their faith upon DFC mutual fund SIP investment scheme. We’re sure you’re wondering what’s so special about HDFC mutual fund SIP schemes. Don’t worry, simply skim through this article to understand what makes HDFC mutual fund SIP schemes so popular amongst investors.
Let’s dive right in! Shall we?
Benefits of investing in HDFC Mutual Fund SIP:
1. Provides Discipline Investment-
The key to a successful investment is discipline. With HDFC Mutual fund SIP, one can choose a fixed amount minimum (as low as Rs.500) to invest per month. Since HDFC SIP Investment for mutual funds is very flexible in nature, investors can also increase or decrease the amount of investment. With a disciplined method of investment, one can deal with the market fluctuation and can generate a higher return on investment over a long-term period. HDFC mutual fund SIP is perhaps the best investment solution for irregular investors as with a disciplined process of investment; they can easily accumulate wealth and can realize their financial goals.
People also read: HDFC NFO
2. Realize Future Financial Goal-
As a smart investment tool, HDFC mutual fund SIP is apt for individuals who have set financial goals for the future. For example, getting married, buying a car, funding their children’s higher education, etc. By investing a little every month through SIP, investors can create a financial cushion to easily realize their short-term or long-term goals. One can refer to the SIP calculator or the below-mentioned table, to know how SIP helps to create a financial corpus.
|
Per Month Savings (For 15 years) |
Total Invested Amount (Rs. In Lakhs) |
Rate of Return |
||
|
6.0% |
8.0% |
10.0%
|
||
|
(Rupees in lakhs, 15 years Later) |
||||
|
5000 |
Rs.9 Lakh |
14.6 17.4 20.9 |
||
|
4000 |
Rs.7.2 Lakh |
11.7 13.9 16.7 |
||
|
3000 |
Rs.5.4 Lakh |
8.8 10.4 12.5 |
||
|
2000 |
Rs.3.6 Lakh |
5.8 7.0 8.3 |
||
|
1000 |
Rs.1.8 Lakh |
2.9 3.5 4.2 |
||
*monthly installments compounded monthly for the tenure of 15 years
People also read: HDFC Life Midcap Momentum NFO
3. Take Advantage of Rupee-Cost Averaging-
Rupee-cost averaging is an effective investment strategy that can help minimize the need to time the market. Most investors often invest in stocks when the price is low and sell them when the price is fairly higher. Thus, timing the market is not only time-consuming but also riskier. On the contrary, with the advantage of rupee-cost averaging, one just needs to invest a pre-determined amount continuously for a longer period of time. Since the amount invested by an individual is constant, one can buy more units when the price is low and lesser units when the price is higher. This, in turn, results in a lower average cost per unit.
4. Provides Benefit of Compounding-
It is more beneficial to invest a small amount regularly, rather than making one large investment. This is because the lump-sum amount saved by an individual may not earn more interest. With HDFC mutual fund SIP, the amount invested multiplies through compounding benefit as well. This means that the interest earned on the investment also earns interest. Thus, it helps investors create a wealth that comprises their own contribution along with the returns compounded, over the years.
5. Do It Effortlessly-
Investing in HDFC mutual fund SIP is very simple and hassle-free. Investors just need to opt the option of auto-debit from their bank account or submit post-dated cheques. According to the amount chosen by the investors, the bank will invest the money per month in the fund option of their choice. SIP plans are completely flexible in nature. And according to one’s requirement, investors can either choose to stay invested for a minimum tenure of 6 months or can invest for as long as they want.
Wrapping it Up!!
Though SIP offers the convenience and flexibility of investing, the key objective should be avoiding short-term financial limitations and stay invested in SIP for a longer tenure. Thus, one can achieve their short-term and long-term goals by making a smart and disciplined investment choice of investing in HDFC mutual fund SIP schemes.
