About SIP »
SIP is similar to a Recurring Deposit. Every month on a specified date an amount you choose is invested in a mutual fund scheme of your choice. Learn about the benefits of investing in SIP.
Become A Disciplined Invester
Being disciplined - It’s the key to investing success. With Systematic Investment Plan you commit an amount of your choice (minimum of Rs. 1000 and in multiples of Rs. 100 thereof*) to be invested every month in one of our schemes.
Think of each SIP payment as laying a brick. One by one, you’ll see them transform into a building. You’ll see your investments accrue month after month. It’s as simple as giving at least 6 postdated monthly cheques to us for a fixed amount in a scheme of your choice. It’s the perfect solution for irregular investors.
*Minimum amounts may differ for each Scheme. Please refer to SIP Enrolment Form for details.
Reach Your Financial Goal
These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector.
Imagine you want to buy a car a year from now, but you don’t know where the down-payment will come from. HDFC MF SIP is a perfect tool for people who have a specific, future financial requirement. By investing an amount of your choice every month, you can plan for and meet financial goals, like funds for a child’s education, a marriage in the family or a comfortable postretirement life. The table below illustrates how a little every month can go a long way.
|Monthly Savings - What your savings may generate|
|Savings per month
(for 15 years)
|Total amount invested
(Rs. in Lacs)
|Rate of return|
|(rupees in lacs, 15 years later)*|
*Monthly instalments, compounded monthly, for a 15-year period.
Disclaimer: The illustration above is merely indicative in nature and should not be construed as investment advice. It does not in any manner imply or suggest performance of any Scheme. Please read Risk Factors.
Take Advantage of Rupee Cost Averaging
Most investors want to buy stocks when the prices are low and sell them when prices are high. But timing the market is timeconsuming and risky. A more successful investment strategy is to adopt the method called Rupee Cost Averaging. To illustrate this we’ll compare investing the identical amounts through a SIP and in one lump sum.
Imagine Ved invests Rs. 1000 every month in an equity mutual fund scheme starting in January. His friend, Raj, invests Rs. 12000 in one lump sum in the same scheme. The following table illustrate how their respective investments would have performed from Jan to Dec:
|Ved's Investment Raj's Investment|
*NAV as on the 10th every month. These are assumed NAVs in a volatile market
Disclaimer: The illustration above is merely indicative in nature and should not be construed as investment advice. It does not in any manner imply or suggest performance of any Scheme. Rupee Cost Averaging neither ensures you profits nor protects you from making a loss in declining markets. Pleaseread Risk Factors.
As seen in the table, by investing through SIP, you end up buying more units when the price is low and fewer units when the price is high. However, over a period of time these market fluctuations are generally averaged. And the average cost of your investment is often reduced.
At the end of the 12 months, Ved has more units than Raj, even though they invested the same amount. That’s because the average cost of Ved ’s units is much lower than that of Raj. Raj made only one investment and that too when the per-unit price was high.
Ved’s average unit price = 12000/1480.6012 = Rs. 8.105
Raj’s average unit price = Rs. 9.345
Grow Your Investment With Compounded Benefits
It is far better to invest a small amount of money regularly, rather than save up to make one large investment. This is because while you are saving the lump sum, your savings may not earn much interest.
With SIP, each amount you invest grows through compounding benefits as well. That is, the interest earned on your investment also earns interest. The following example illustrates this.
Imagine Neha is 20 years old when she starts working. Every month she saves and invests Rs. 5,000 till she is 25 years old. The total investment made by her over 5 years is Rs. 3 lakhs.Arjun also starts working when he is 20 years old. But he doesn’t invest monthly. He gets a large bonus of Rs. 3 lakhs at 25 and decides to invest the entire amount.
*Figures based on 10% p.a. interest compounded monthly.
Disclaimer: TheThe illustration above is merely indicative in nature and should not be construed as investment advice. It does not in any manner imply or suggest performance of any Scheme. Please read Risk Factors
Do All This Effortlessly
Investing in SIP is easy. Simply give us post-dated cheques or opt for an Auto Debit from you bank account for an amount of your choice (minimum of Rs. 1000 and in multiples of Rs. 100 thereof*) and we’ll invest the money every month in a fund of your choice. The plans are completely flexible. You can invest for a minimum of six months, or for as long as you want. You can also decide to invest quarterly and will need to invest for a minimum of two quarters.
All you have to do after that is sit back and watch your investments accumulate.
Please refer to the SIP Enrolment Form for terms and conditions before enrolment.
*Minimum amounts may differ for each Scheme.