HDFC Mutual Fund AMC is one of the established Asset Management Companies regulated by the Housing Development Finance Corporation Bank. Numerous investors have invested in multiple investment options offered by the fund for a long time.
It also offers the facility of Systematic Investment Plan (SIP) for its mutual fund schemes. SIP refers to regular installments that an investor pays to the selected mutual fund, at predefined intervals.
List of Best HDFC Bank SIP Mutual Funds
|Fund Name||Category||1 Year Return||3 Year Returns||5 Year Returns|
|HDFC Mid-Cap Opportunities Fund||Equity: Mid Cap||-10.49%||4.9%||9.88%|
|HDFC Hybrid- Equity Fund||Hybrid:Aggressive Hybrid||1.58%||8.61%||9.95%|
|HDFC Top 100 Fund||Equity: Large Cap||-0.38%||9.63%||7.78%|
|HDFC Small Cap Fund||Equity: Small Cap||-13.68%||9.64%||11.01%|
|HDFC Equity Fund||Equity: Multi Cap||-5.95%||8.53%||8.17%|
*All data as on Sep 16, 2019
Also Read : Best SIP Mutual Fund to Invest in 2019
What is SIP?
SIP is an acronym for Systematic Investment Plan (SIP) and refers to regular investment of small amounts of money in mutual funds at predefined intervals. These intervals could be weekly, monthly, quarterly, or annually. SIP ensures that an individual who doesn’t have enough money to invest as a lump-sum investment can also generate extra income by investing in mutual funds.
Benefits of Investing in HDFC Bank Mutual Funds via SIP
How Does HDFC Bank SIP Work?
When you invest through SIP, you buy units of mutual fund every month or any other pre-decided intervals from the amount you’ve invested. This amount gets deposited in HDFC Bank mutual fund.
Although the amount an investor invests through SIP remains unchanged, the Net Asset Value (NAV) of the mutual fund changes as per its investment portfolio. It means that you buy less number of units when the NAV of the fund increases and more units when the NAV of the fund decreases. This balances out the market risk. Therefore, it is advisable to invest through SIP rather than making a lump-sum investment.
Also Read : Best ELSS Mutual Funds to Invest in 2019
A Comparative Analysis of Top HDFC Mutual Funds
- HDFC Mid-Cap Opportunities Fund
Category: Equity: Mid Cap
AUM: ₹22,599 crore
It is an open ended scheme which predominantly invests in mid cap stocks. Since mid cap companies are more prone to market swings as compared to large cap stocks, investment in this fund carries moderate risk.
It has invested around 80% of its total assets in equity or equity related instruments of mid cap companies and the rest in stocks of small and large cap companies.
This fund has delivered returns at the rate of 13.99% in the 5 year time period which is higher than both the benchmark(10.95%) and category average(13.14%).
- HDFC Hybrid- Equity Fund
Category: Hybrid:Aggressive Hybrid
AUM: ₹22,221 crore
Aggressive Hybrid Funds predominantly invest in equities and equity-related instruments with some allocation to debt securities.
HDFC Hybrid – Equity fund has delivered returns at the rate of 12.79% in the 5 year time period. It has consistently outperformed its benchmark and category average returns in 1 year, 3 years and 5 years return framework.
This fund is perfect for those investors who have long term investment horizon and moderate risk appetite. The minimum amount required for SIP investment is ₹500.
- HDFC Top 100 Fund
Category: Equity: Large Cap
AUM: ₹17,912 crore
This fund is one of the least risky investment options provided by HDFC AMC since it primarily invests in large cap stocks which are the most valuable and least volatile on the stock exchanges. It has invested around 90% of its total assets in equity or equity related instruments of large cap companies.
In a 1-year time period, it has delivered returns at the rate of 17.05% which is significantly higher than the benchmark rate (7.17%) and category average (6.11%). In the 5 year return framework, the rate of return is 11.07%
The minimum amount required for SIP Investment for this fund is ₹500.
- HDFC Small Cap Fund
Category: Equity: Small Cap
AUM: ₹8,427 crore
Small cap stocks are quite sensitive to market fluctuations, but they offer a great opportunity for high returns if investment is done strategically.
The 3 year and 5 year rate of return stands at 14.06% and 16.05% respectively. This is the highest return yielding mutual fund by HDFC. The reason behind the high rate of return lies in the fact that it invests around 54% of its assets in small cap stocks and around 40% in mid cap stocks that have a high growth potential.
This fund is apt for those investors who have a high risk appetite and want to leverage that to get high returns. The expense ratio (0.84%) for this fund is also very low, which further adds value to your returns.
- HDFC Equity Fund
Category: Equity: Multi Cap
AUM: ₹23,688 crore
This fund has a diversified portfolio of large cap, mid-cap and small-cap stocks. It uses the blended strategy in terms of investment to maximise its returns.
With investment of about 84% of its total assets in large-cap stocks and residual allocation to mid-cap and small-cap stocks, it has 42 stocks in its portfolio. It has delivered returns at the rate of 11.05% in 5 year return framework.
Its approach is to invest in companies which have a sustainable business model and a great potential for growth. This product is suitable for investors with moderately high risk appetite who want to generate long term capital appreciation.