Mutual fund calculator: Monthly SIP of ₹10,000 grows over ₹10 lac in 5 years
2 min read . Updated: 09 Sep 2022, 07:03 PM IST
Premium- Holding various investments, such as mutual funds, or stocks for more than a year is referred to as a long-term investment
Holding various investments, such as mutual funds, or stocks for more than a year is referred to as a long-term investment. It has historically been demonstrated that taking on a certain level of risk has led to the creation of long-term wealth as opposed to short-term gain. When it comes to investing in equity mutual funds, investing for the long term enables you to compound any dividend profits you receive and again reinvested in the same fund, outperforming the market practically invariably. A perfect example of a long-term investment is the HDFC Retirement Savings Fund Equity Plan Direct-Growth, which in five years has made a monthly SIP of ₹10,000 to ₹10 lakh.
HDFC Retirement Savings Fund Equity Plan Direct-Growth
This multi-cap fund, HDFC Retirement Savings Fund Equity Plan Direct-Growth, was introduced on February 25, 2016, and Value Research has awarded it a 5-star rating. Since its introduction, the HDFC Retirement Savings Fund Equity Plan Direct-Growth has generated returns of 20.38% on average annually. A monthly SIP of ₹10,000 initiated in this fund 5 years ago would now have grown to ₹10.12 lakh based on the fund's annualized SIP return over the previous 5 years, which was 21.02%. In the last 3 years, the fund has given an annualized SIP return of 28.75%, hence a monthly SIP of ₹10,000 started 3 years ago would now have turned to ₹5.44 Lakh.
The fund has provided an annualized SIP return of 25.64% over the past two years, implying that a monthly SIP of ₹10,000 made two years ago would today be worth ₹3,22 lakh. In the last 1 year, the fund has given an annualized SIP return of 7.31% which is much higher than the category average of 5.10% and the performance of the benchmark index Nifty 500 TRI reached 5.65% in that period. In the last 1 year, the fund has generated an absolute return of 18.99% which is the highest in the fund category. The fund outperformed the category average in each of the three time periods, generating trailing returns of 15.64% in 5 years, 25.66% in 3 years, and 9.45% in one year.
Key takeaways of HDFC Retirement Savings Fund Equity Plan Direct-Growth
As of June 30, 2022, HDFC Retirement Savings Fund Equity Plan Direct-Growth had assets under management (AUM) at ₹2288.4 crores, and as of September 8, 2022, the fund's NAV was ₹33.63. The expense ratio of the fund is 0.88%, which is higher than the majority of other multi-cap funds. If you look at the previous returns of the fund mentioned above, you will see that it has doubled the invested money of the investors every 3 years.
The fund's top 5 holdings are ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd., and Housing Development Finance Corp. The fund has a sector allocation of Financial, Services, Capital Goods, Consumer Staples, and Technology industries. The fund invests 87.90% of its assets in domestic equities, of which 31.11% are small-cap companies, 9.86% are mid-cap stocks, and 46.93% are large-cap stocks. The investment made in government securities by the fund is 1.43%.
