Top 5 Benefits of Investing in HDFC Mutual Fund SIP

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?

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 29
• 31
• 32
• 33
• 34
• 36
• 37
• 38
• 39
• 40

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 30

Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 29
• 31
• 32
• 33
• 34
• 36
• 37
• 38
• 39
• 40

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 30

Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

19.3%

High Growth Fund

15.61%

Accelerator Mid-Cap Fund II

15.48%

Opportunities Fund

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. 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.