A Calculator Study of HDFC Mutual Fund SIP Investments’ Potential Growth Over Time

Mutual funds are one alternative for investors looking for exponential returns. Additionally, SIP investments into some mutual funds can generate a substantial amount of wealth through the power of compounding and long-term, consistent investing. One of the most well-known asset management companies on the market, HDFC offers customers a range of mutual fund solutions. The article that follows looks at HDFC’s possible expansion.

Investments in mutual funds through SIPs:

By using a systematic investment plan (SIP) to invest in HDFC mutual funds, investors can benefit from compound growth and rupee cost averaging, which can result in an exponential increase in assets. Investors can generate sufficient returns to meet their financial goals by continuously investing a fixed amount over a predetermined period of time. Flexibility, affordability, consistency, and discipline are the benefits of SIP investing for investors. Additionally, the wide variety of HDFC mutual fund schemes—which include debt, equities, flexi cap, thematic, and more—allows investors to diversify their holdings in order to maximize profits.

How investment growth is aided by the SIP investment calculator:

By entering details such the monthly SIP amount, projected rate of return, and investment duration, investors can calculate the future value of their investments. By computing the total returns from SIP investments, the SIP investment calculator assists investors in selecting the best Hdfc Mutual fund plan that suits their tastes and financial goals.

Let’s study from the following example:

An HDFC equities mutual fund plan with a projected 12% annual rate of return through SIP investment offers investors the option to deposit ₹5000 per month for 20 years. Investors can harness the power of compounding and averaging to generate an estimated ₹50 lakhs in 20 years with a total investment of ₹12 lakhs.

Total investment over ten years: ₹6 lakhs
Refunded: ₹11.6 lakhs

Fifteen years
Total amount invested: ₹9 lakhs
Refunds: ₹27 lakhs

Total investment over 20 years: ₹12 lakhs
50 lakh rupees in returns

On the other hand, a flexi-cap HDFC mutual fund plan might provide 10% returns. With the same investment over the same time span, an investor will earn far less.

Ten years
Total investment: ₹6 lakhs
Returns: 10.08 lakh rupees

Fifteen years
Total amount invested: ₹9 lakhs
Revenue: ₹20.08 lakhs

Twenty years
Total amount invested: ₹12 lakhs
Returns: 36 lakh rupees

As time goes on, investors must select the right mutual fund plan and investment because the flexi cap fund’s returns also decrease over time.

The exponential gains that investors would obtain by regularly spending a fixed amount over an extended period of time may not even be possible with daily trading. Using the SIP Calculator, investors may select the best HDFC mutual fund plans with the highest returns. By analyzing the entire investment period, the financial requirements and expenses, and even the suitable mutual fund schemes, a SIP calculator may be used to calculate the SIP amount.

To sum up

Investing in HDFC mutual fund schemes allows investors to get the maximum returns through SIPs. When persistently invested over a long length of time, HDFC mutual fund schemes can contribute to the exponential increase of total capital through compounding.