Grow Your Wealth with HDFC SIP Investment Plans

Manish Kothari
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isVerifiedExpertAuthor is a Zfunds Verified Expert
Manish Kothari

HDFC Mutual Fund SIP Investment Plan 2023

There is no denying that HDFC is one of the most renowned names in the Indian financial sector. Most products and services offered by the company draw huge demand, and HDFC mutual funds are no different. If you wish to invest a fixed amount in these schemes at regular intervals, then you can opt for HDFC SIP investment plans and take a step towards creating wealth. SIPs have numerous benefits, such as averaging out the buying price and helping develop financial discipline. So, start an HDFC SIP investment plan today! 

Why Invest in HDFC SIP Investment Plans ?

HDFC Mutual Fund is one of India's leading mutual fund houses, known for its diverse range of investment options, strong investment management team, and consistent track record of delivering excellent returns to investors. Here are some reasons why you should consider investing in HDFC mutual funds:

Wide Range of Investment Options: HDFC Mutual Fund offers a wide range of mutual fund schemes across different asset classes. For instance, you can make SIP mutual fund investments in equity, debt, hybrid, and solution-oriented funds, catering to various investor needs and risk profiles.

Strong Investment Management Team: HDFC Mutual Fund has a highly experienced and skilled investment management team, which employs a rigorous investment process and research-driven approach to identify the best investment opportunities.

Consistent Performance: HDFC Mutual Fund has a consistent track record of delivering superior returns across various funds, beating benchmark indices and peers. Thus, you can rest assured that your HDFC SIP investment plan will garner handsome returns.  

Strong Brand and Reputation: HDFC Mutual Fund is part of the well-established HDFC Group, which has a strong brand and reputation in the Indian financial industry.

What is an SIP ?  

One can choose from two routes for investing in mutual fund schemes. While the first one is a lump sum, which is a one-time investment with no installments. The second is SIP or systematic investment plan, which entails investing a fixed amount of money in the mutual fund scheme at regular intervals, such as weekly, monthly, quarterly, or even annually. SIP investments are gaining massive popularity among retail investors. According to the AMFI, the share of SIP mutual fund investments in the total AUM or assets under management of the industry reached a record 17% in the month of January, Thus, more and more people are opting to invest in mutual funds via SIPs. Type of daily sip investment plan such as yearly, monthly and daily sip mutual fund plan.

Benefits of Mutual Fund SIP Investment

The systematic investment plan (SIP) is an excellent way to build long-term wealth and financial stability. Here are some of the benefits of a systematic investment plan:  

Develop Good Financial Habits

The primary benefit of a systematic investment plan is that it helps individuals develop discipline by building strong investment habits. SIPs encourage investors to save a fixed amount of money every month, which helps them grow their investments over time. Thus, over time, you learn to put a part of your regular income aside and manage your expenses accordingly.  

Take Advantage of Compounding  

Another benefit of a systematic investment plan is that it helps investors to maximize their returns. By investing a fixed amount of money each month, investors are able to take advantage of compounding interest, which leads to greater returns over the long term.  

Averaging Out the Cost

A systematic investment plan allows investors to take advantage of averaging, which helps them to buy more units of a mutual fund when the prices are low. In other words, an SIP helps investors avoid buying at market highs, thus, increasing their returns from SIP investments.  

Start Small If You Like  

Another great advantage of SIPs is that you can start investing with a very small amount. This means that you do not require a large amount of money to start investing in an HDFC SIP plan, and you can start with as little as INR 500 a month. This makes it a great option for those who are just starting out with investing or who are on a budget.  

Stop Investing at any Time

SIPs are flexible investment tools that allow you to opt out at any time. Thus, in case of a cash crunch, you can choose to skip one or more HDFC SIP installments, or completely opt out of the mutual fund SIP scheme.

Tax Saving

Finally, a systematic investment plan also allows investors to save on taxes. You can start an SIP in HDFC tax saving schemes for tax deductions. Moreover, since SIPs are long-term investment instruments, you also save tax at the time of redemption since long-term capital gains are taxed at a lower rate and also enjoy an exemption of up to INR 1,00,000.  

HDFC SIP Calculator  

Comprehensive research and analysis can help investors make better investment decisions. Thus, a general idea regarding expected returns from an HDFC SIP plan can enable effective decision-making. A reliable solution here is the HDFC systematic investment calculator which helps gauge the total returns from a systematic investment plan. This is a simple tool that anybody can use to determine returns from their mutual fund investment over a long period of time by simply basic details, such as the SIP amount and the investment period. You can use the ZFunds’ HDFC SIP mutual fund calculator to get an idea regarding the returns from your investment over a long period of time.  

Popular HDFC Mutual Fund Schemes

HDFC Flexi Cap Fund - Growth Plan

HDFC Large and Mid Cap Fund - Growth Option

HDFC Mid-Cap Opportunities Fund - Growth Plan

HDFC Small Cap Fund - Growth Option

HDFC Balanced Advantage Fund - Growth Plan

HDFC Top 100 Fund - Growth Option - Regular Plan

HDFC Taxsaver - Growth Plan

Frequently Asked Questions about HDFC SIP Plan  

Q. What is the minimum monthly investment amount for HDFC SIP plans ?  

A. The minimum monthly HDFC SIP amount depends on the mutual fund scheme you are investing in. However, most HDFC mutual fund schemes require investors to put in at least INR 500 or INR 1000 every month via systematic investment plans.  

Q. What happens if you miss your HDFC SIP installment ?

A. Investors do not need to worry about any penalty or charge for missing any HDFC SIP installment. You can simply pay the next month’s installment and continue your systematic investment plan. However, in case you miss three consecutive installments, your HDFC SIP plan may be canceled.  

Q. Can I increase the amount of my HDFC SIP plan ?

A. No. Once you have started an HDFC SIP plan, you cannot change the investment amount. However, you can start a new SIP if you wish to invest more. In case you seek to invest less, you can cancel your current plan, and start a new HDFC SIP investment plan with a lower amount.  

Q. What happens to my investment if I stop paying HDFC SIP installments ?  

A. Whether you stop paying your SIP installments or your investment period expires, your savings remain invested and your wealth continues to grow till you choose to redeem or switch out.  

Q. Do HDFC SIP investment plans offer tax benefits ?

A. Yes. You can choose an HDFC tax benefit mutual fund and start investing via SIPs to enjoy tax benefits. You can get up to INR 1,50,000 in tax deductions to save around INR 46,800 on taxes in a financial year.

Also Read : 

ICICI SIP Mutual Fund Calculator

HSBC SIP Calculator

Rupee Averaging Cost in SIP