People are getting more knowledgeable about investment plans. In the past, common man mostly invested in government-offered schemes for security purposes. Now banks and post offices both offer interest at a lower rate. So people have to think outside the box. People are now openly talking about SIP investment.
HDFC Balanced Advantage Fund was started on February 1, 1994. Since then, the fund has generated an average annualized return of 18.66 per cent. If 30 years ago an investor had started a monthly SIP (Systematic Investment Plan) of Rs 3000 in this fund, today his fund would have become around Rs 5 crore.
In this way you can turn Rs. 3000 SIP into a RS 5 crore fund
If you look at this amount, the invested capital would have been only Rs 10.80 lakh, but on the basis of 18.66 percent annual return, this amount would have reached Rs 4.93 crore as interest. HDFC Balanced Advantage Fund is considered by experts as a high-risk investment, so it is advisable to invest it for at least 3 years or more.
However, investors can start SIPs in this fund with a minimum amount of just Rs 100, which makes it accessible to every level of investor. The fund has performed well in the last one year as well. It has given a return of 33.79 per cent in the last one year, while the rate in three years has been 22.63 per cent annually. The fund has generated an annualized return of 21.62 per cent on a five-year average. People are also turning to mutual funds in greater numbers due to higher returns than FDs and other traditional investment schemes.
Most of these are being seen in investors who want to avoid investing directly in the stock market. So let’s now find out how much return a fund can give on an SIP of 3 thousand. HDFC Balanced Advantage Fund is an example of calculation.