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.

Read more

SIP Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80 C
Zero LTCG Tax
Zero LTCG Tax^ (Unlike 10% in Mutual Funds)
Disciplined & worry-free investing
Disciplined & worry-free investing

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:

benefits-sip benefits-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.

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.

+For Mutual Fund midcap category Returns https://www.morningstar.in/tools/mutual-fund-category-performance.aspx & for Insurance midcap fund category Returns- https://www.morningstar.in/tools/insurance-fund-category-performance.aspx
*Past 10 Year annualised returns as on 01-12-2023
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

SIP plans articles

Recent Articles
Popular Articles
Best SIP Plans for 500 per Month

07 May 2024

Investing through a Systematic Investment Plan (SIP) allows you
Read more
Why You Should Not Cancel Your SIP Within a Short-Term?

05 Apr 2024

Systematic Investment Plans (SIPs) have become a popular
Read more
Benefits of One - Time Mandate For SIP Investment

26 Mar 2024

One Time Mandate (OTM) for SIP investments make things easier by
Read more
ELSS vs SIP

26 Mar 2024

Differentiating between ELSS and SIP can be challenging because
Read more
How to Redeem ELSS SIP?

26 Mar 2024

Redeeming Equity Linked Savings Scheme SIPs require a clear
Read more
Best 1 Year SIP Plans
One of the emerging investment options in India, SIPs or Systematic Investment Plans is gaining popularity
Read more
SBI SIP Plans (Systematic Investment Plan)
SBI Systematic Investment Plan or SBI SIP Plan is a convenient and disciplined approach to investing in
Read more
LIC SIP Calculator
Life Insurance Corporation of India (LIC) is one of the highly-trusted asset management companies (AMCs) in
Read more

Invest In SIP & Get Financial Freedom

With BEST RETURNS and tax free maturity*

*under 10(10D)
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL