AThe returns you would receive from your Systematic Investment Plan (SIP) investments can be estimated using the help of a mutual fund SIP calculator. Also, the mutual fund SIP calculator provides you with the monthly investment amount required to reach your desired corpus. It essentially acts as a road map for achieving your different financial objectives.
Without a pen and paper, the mutual fund SIP calculator may be quite efficient in automatically performing difficult financial calculations. A few quick inputs are required, and the mutual fund SIP calculator quickly calculates the answer. The input boxes require typically 3 inputs. These are:
- Investment amount per month
- Period of investment
- Annual returns anticipated
An organized method of investing is a systematic investment plan (SIP). By using the SIP approach, you make fixed investments in mutual funds on a monthly, quarterly, or even semi-annual basis. By choosing the auto-debit option, you can make sure that the money is moved from your bank account to the fund on the designated day. In this manner, you won’t have to be concerned about forgetting a monthly payment. HDFC Hybrid Equity Fund is one of them.
The goal of investing in mutual funds through SIP is to build wealth over time. It can help you instill the habit of saving and investing because it is a recurring investment process rather than a one-time investment. SIP investments can also limit your exposure to financial market volatility.
How a mutual fund SIP calculator works:
The mutual fund SIP calculator estimates the total investment value at maturity by accounting for the investment amount, frequency of investments, rate of return, and number of years of investments.
- Investment Amount: The user enters the amount they want to put into the SIP each month.
- Investment term: The user enters the number of months they intend to invest through the SIP as the investment tenure.
- Expected rate of return: Based on the mutual fund’s past performance, the user enters their expected rate of return on their investment.
- Calculation of returns: The mutual fund SIP calculator estimates the anticipated returns on the investment using the input data. It accounts for the compounding effect of making consistent investments over a lengthy period of time.
- Interest calculation: Compound interest is a mathematical concept that is used by the mutual fund SIP calculator to estimate the future value of your investment. It determines how much interest will be made on the money invested, which will be added to the principal and become a part of the investment. When this procedure is performed each month (or at any other interval), the investment grows exponentially over time.
- Output Results: It’s crucial to remember that the outcomes of a mutual fund SIP calculator are merely estimations and shouldn’t be used as a promise of future gains. Many variables, including market circumstances, fund performance, and inflation, may cause the actual returns to be higher or lower.
The mutual fund SIP calculator provides estimated returns, including the total amount invested, total returns, and expected maturity value. mutual fund SIP calculator provides you with a chart that displays the increase of your investment over time as well as an estimate of its future value.
HDFC Hybrid Equity Fund:
The Plan intends to provide income or capital appreciation from a portfolio that is primarily comprised of equities and equity-related assets. The Scheme’s investment goal is to provide income or capital growth from a portfolio that primarily consists of equities and equity-related instruments.
HDFC Hybrid Equity Fund Direct Plan-Growth is an Aggressive Hybrid mutual fund scheme by HDFC Mutual Fund. The fund’s expense ratio of 1.13% is greater than what the majority of other aggressive hybrid funds levies. The fund is allocated 68.41% to equity and 29.00% to debt. The HDFC Hybrid Equity Fund Direct Plan-Growth scheme has a consistency of return that is comparable to the majority of funds in its class. It performs better than average at limiting losses in a down market. The equity part of the fund generally invests in the sectors of finance, energy, capital goods, technology, and consumer staples.
Compared to other funds in the category, HDFC Hybrid Equity Fund has less exposure to the financial and energy industries. The fund’s debt portion has a low credit rating, which indicates that the borrowers it has lent money to are not of very high calibre. ITC Ltd., Reliance Industries Ltd., Infosys Ltd., Housing Development Finance Corporation Ltd., and State Bank of India are the top 5 holdings of the fund.