One investment option available to investors seeking exponential returns is mutual funds. Additionally, via the force of compounding and long-term, regular investing, one can create a significant amount of wealth through SIP investments into certain mutual funds. HDFC is one of the most prominent asset management firms on the market, providing a variety of mutual fund options for clients to choose from. The following article examines the potential growth of HDFC
Mutual Fund investments made through SIPs:
Investing in HDFC mutual funds through a systematic investment plan (SIP) enables investors to take advantage of compound growth and rupee cost averaging, which can lead to exponential increase in assets. A fixed sum invested consistently over a predetermined length of time can help investors create enough returns to enable them to reach their financial objectives. The advantages of SIP investing for investors are flexibility, affordability, consistency, and discipline. Moreover, investors can diversify their assets to obtain the highest returns thanks to the large range of HDFC Mutual fund schemes, including equity, flexi cap, debt, thematic, etc.
How the SIP investment calculator aids in investment growth:
Investors can determine the future value of their investments by entering information such as the monthly SIP amount, estimated rate of return, and investment duration. The SIP investment calculator helps investors choose the optimal Hdfc Mutual fund strategy that fits their preferences and financial objectives by calculating the total returns from SIP investments.
Let’s use the following example to learn:
Investors may choose to deposit ₹5000 per month for 20 years in an HDFC equity mutual fund plan with a projected 12% annual rate of return through SIP investment. With a total investment of ₹12 lakhs, investors can use the power of compounding and averaging to create an estimated ₹50 lakhs in 20 years.
Ten years
Investment total: ₹6 lakhs
Received back: ₹11.6 lakhs
15 years
Investment total: ₹9 lakhs
Returns: ₹27 lakhs
20 years
Investment total: ₹12 lakhs
Returns: 50 lakh rupees
Conversely, a flexi-cap HDFC mutual fund plan might yield returns of 10%. An investor will make significantly less money with the same investment over the same period of time.
Ten years
Investment total: ₹6 lakhs
Returns: 10.08 lakhs of rupees
15 years
Investment total: ₹9 lakhs
Income received: ₹20.08 lakhs
20 years
Investment total: ₹12 lakhs
Returns: 36 lakhs of rupees
It is crucial for investors to choose the appropriate mutual fund scheme and investment as the period lengthens because the rewards for the flexi cap fund also decline with time.
Even day-to-day trading may not yield the exponential returns that investors might achieve by consistently investing a set amount over an extended period of time. Investors can choose the finest HDFC mutual fund plans with the highest returns by using the SIP Calculator. An SIP calculator may be used to determine the SIP amount by comparing the complete investment time, the financial needs and expenses, and even the appropriate mutual fund schemes.
In conclusion
Investors can obtain the best returns through SIPs by investing in HDFC mutual fund schemes. Through compounding, HDFC mutual fund schemes can contribute to the exponential growth of total investments when invested consistently over an extended period of time
