Are you planning to invest in mutual funds and are looking for the best HDFC SIPs? HDFC Mutual Fund is among the most trusted names in the industry. With a wide range of mutual fund schemes, HDFC offers various SIPs to help investors achieve their financial goals. This article glances at the best HDFC SIPs you may want to invest in.
What are HDFC Mutual Funds?
HDFC Mutual Fund is a subsidiary of HDFC Ltd, India's leading housing finance company. It was established in 1999 and has since grown to become one of India's largest mutual fund houses, managing assets worth over Rs. 4.78 lakh crore. HDFC Mutual Fund offers a variety of mutual fund schemes, including equity, debt, hybrid and solution-oriented funds, to cater to the diverse investment needs of investors.
Best HDFC Mutual Funds for an SIP
Let's look at the best HDFC mutual funds that offer SIPs for investors.
HDFC Top 100 Fund
The HDFC Top 100 Fund is an equity mutual fund that invests in the top 100 companies listed on the Indian stock exchange. This fund has delivered consistent returns over the years and is suitable for investors with a long-term investment horizon of 5 to 7 years. The SIP investment in this fund can begin at as low as Rs. 500.
The fund has a corpus of over Rs. 22,000 crore and has delivered a return of 26.54% in the past year. The fund invests predominantly in large-cap stocks focusing on quality and growth. The fund manager, Mr Prashant Jain, has managed the fund since 2003 and has a proven track record of generating higher returns than the benchmark index.
HDFC Mid-Cap Opportunities Fund
The HDFC Mid-Cap Opportunities Fund is an equity mutual fund primarily investing in mid-cap companies with high growth potential. This fund has a strong history of generating higher returns than the benchmark index over the long term. Investors can begin their SIP in this fund with a minimum investment of Rs. 500.
Presently, the fund has a corpus of over Rs. 27,000 crore and has delivered a remarkable return of 44.07% in the past one year. The fund invests in mid-cap and small-cap stocks, focusing on quality and growth. The fund manager, Mr Chirag Setalvad, has successfully managed the fund since 2013 and has a proven track record of generating higher returns than the benchmark index.
HDFC Small Cap Fund
The HDFC Small Cap Fund is a small-cap equity mutual fund that invests in small-cap companies with high growth potential. This fund has the potential to generate higher returns over the long term but comes with higher risk. This fund's SIP can begin with a minimum investment of Rs. 500.
The HDFC Small Cap Fund is a popular mutual fund that has delivered impressive returns to investors. With a corpus of over Rs. 12,000 crore, this fund has generated a return of 59.14% in the past year alone. The fund primarily invests in small-cap stocks, focusing on companies with quality growth potential.
Mr Chirag Setalvad, the fund manager, has successfully managed the fund since 2018. With his experience, the fund has consistently outperformed the benchmark index, delivering higher returns to investors. The HDFC Small Cap Fund can be a good option for investors willing to take on higher risk for potentially higher returns. HDFC Small Cap Fund is among the best HDFC mutual funds to invest in 2023.
HDFC Balanced Advantage Fund
Which HDFC mutual fund is best? The HDFC Balanced Advantage Fund is a hybrid fund that aims to provide capital appreciation and income over the long term. It invests in a mix of equity and debt securities and uses a dynamic asset allocation strategy to manage market volatility. The fund has delivered a return of 23.12% over the past year and has outperformed its benchmark over the past 1, 3, 5 and 10-year periods. The fund has an expense ratio of 1.73%, which aligns with other hybrid funds.
HDFC Hybrid Equity Fund
The HDFC Hybrid Equity Fund is a hybrid fund that aims to generate long-term capital appreciation by investing in a mix of equity and debt securities. It is preferential towards large-cap stocks and invests a smaller portion in mid and small-cap stocks. The fund has delivered a return of 24.73% over the past year and has outperformed its benchmark over the past 1, 3, 5 and 10-year periods. The fund has an expense ratio of 1.87%, which aligns with other hybrid funds.
Benefits of investing in HDFC Mutual Funds through SIPs
- Rupee Cost Averaging: SIPs gives you the opportunity to invest a fixed amount of money at regular intervals, regardless of the market conditions. This helps reduce the average purchase cost and can potentially enhance the overall returns on your investment.
- Convenience: SIPs are a convenient way to invest in mutual funds. SIPs give investors the opportunity to automate their investments and minimise the need to time the market.
- Disciplined investing: SIPs help develop a disciplined investment habit, as they encourage regular investing, even during market downturns.
Conclusion
HDFC Mutual Funds have been among the most popular investment options among investors in India, for a long time now. HDFC offers a wide range of mutual funds, including SIPs suitable for investors with different risk appetites and investment goals. We have discussed some of the best HDFC SIPs you can consider investing in 2023.
Before making any investment decision, it is essential to do your independent research, consult a financial advisor and understand the associated risks with investing in mutual funds. Investing in mutual funds involves market risks. The value of your investments is subject to change based on market fluctuations.
All things considered, if you are looking for a reliable and trustworthy mutual fund company to invest in, HDFC Mutual Funds can make a good choice. By choosing the right HDFC SIP based on your investment goals and risk appetite, you can build wealth over the long term and achieve your financial goals.
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Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.