SIP: Currently, Indians are more intelligent and informed regarding investments. They can now comprehend more effectively where to allocate funds to achieve greater returns compared to conventional investments while ensuring safety. This explains why the number of individuals investing in mutual funds across the nation is growing swiftly.
Why so much interest for SIP?
Individuals are increasingly opting for mutual funds because they offer better returns compared to fixed deposits and other conventional investment options. The greatest interest in these is observed among investors seeking to steer clear of direct stock market investments. Let’s now discover the return a fund can provide on a SIP of Rs 3,000.
Should you invest in HDFC Fund?
Let’s grasp the calculation by using HDFC Balanced Advantage Fund as an illustration. HDFC Balanced Advantage Fund started its operations on 1 February 1994. Since that time, this fund has provided an average annual return of 18.66 percent. If an investor had initiated a monthly SIP (Systematic Investment Plan) of Rs 3000 in this fund 30 years back, today his investment would be worth roughly Rs 5 crore.
Examining this figure, the invested capital would have merely been Rs 10.80 lakh, yet with an annual return of 18.66 percent, this sum would have grown to Rs 4.93 crore in interest. Experts view HDFC Balanced Advantage Fund as a high-risk investment, so it is recommended to invest for at least 3 years or longer. Nevertheless, investors can initiate a SIP in this fund with a minimum investment of merely Rs 100, making it available to all types of investors.
It has yielded a return of 33.79 percent over the past year, whereas over three years this figure has averaged 22.63 percent each year.
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