Various investments, such as mutual funds, or stocks, held for more than a year are known as long-term investments. It has been demonstrated historically that taking a certain level of risk has resulted in the creation of long-term wealth as opposed to short-term gains. When it comes to investing in equity mutual funds, investing for a longer period helps you to combine any dividend gains you receive and reinvest in the same fund, which is practically Outperforms the market. A perfect example of a long-term investment is HDFC Retirement Savings Fund Equity Plan Direct-Growth, which has built-in monthly SIPs over five years from 10,000 10 lakhs.
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 inception, HDFC Retirement Savings Fund Equity Plan Direct-Growth has delivered an average annualized return of 20.38%. a monthly SIP of 10,000 started in this fund 5 years ago would have grown now 10.12 Lakh based on the Annual SIP Return of the Fund in the last 5 years which was 21.02%. In the last 3 years, the fund has given an annual SIP return of 28.75%, hence the monthly SIP 10,000 that started 3 years ago now turns into 5.44 lakhs.
The fund has provided annual SIP returns of 25.64% in the last two years, which means monthly SIP 10,000 made two years ago will be worth today 3,22 lakhs. In the last 1 year, the fund has given annual SIP returns of 7.31% which is much higher than the category average of 5.10% and the performance of the benchmark index Nifty 500 TRI has reached 5.65% over that period. In the last 1 year, the fund has generated an absolute return of 18.99% which is the highest among the fund category. The fund outperformed the category average in each of the three time periods, giving previous returns of 15.64% in 5 years, 25.66% in 3 years and 9.45% in one year.
Highlights of HDFC Retirement Savings Fund Equity Plan Direct-Growth
As on June 30, 2022, HDFC Retirement Savings Fund Equity Plan Direct-Growth had Assets Under Management (AUM) 2288.4 crores, and as on September 8, 2022, the NAV of the fund was 33.63. The fund has an expense ratio of 0.88%, which is higher than majority of other multi-cap funds. If you look at the past returns of the above mentioned fund, you will find that the money invested by investors has doubled in it every 3 years.
The top 5 holdings of the fund are ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Infosys Ltd. and Housing Development Finance Corp. The fund has a sector allocation of financials, services, capital goods, consumer staples and technology. industry. 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 by the fund in government securities is 1.43%.
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