Mutual Fund Calculator: Rs 10K monthly SIP turns into Rs 8.30 crore in 27 years
HDFC Top 100 Fund, one of the longest running mutual fund schemes in India, has given 19% Compound Annual Growth Rate (CAGR) returns over the last 27 years.
At this growth rate, the scheme, launched in October 1996, would have turned a monthly SIP of Rs 10,000 (total investment Rs 33.20 lakh) into Rs 8.30 crore in 27 years.
“An SIP of Rs 10,000 invested systematically on the first business day of every month in HDFC Top 100 Fund would have grown to Rs 8.30 crore by May 31, 2024. This performance is a testament to the fund’s ability to navigate market fluctuations and deliver growth to investors,” HDFC Mutual Fund said in a statement on Tuesday.
The portfolio construction follows a bottom-up approach to stock picking blended with top down sector and macro trends, it said, adding that the fund follows a diversified style with a blend of GARP (growth at reasonable price) and value.
Also read: Mutual Fund Calculator: Starting Rs 3000 SIP at 30? Here’s how much you will get at retirement
The fund house said that in stock selection, the focus is on quality of business models, management and financial metrics. “Portfolio construction is based on risk-reward of opportunities available at any given point in time. As per the mandate, more than 80% of the portfolio always remains invested in the well-established large cap companies. The core of the portfolio construction is from a medium to long term perspective. The strategy will be in line with our philosophy of maintaining a disciplined approach of looking for quality companies at reasonable valuations,” it said.
There is lot of focus on risk management with active positions being taken in a controlled manner while ensuring compliance with regulatory and internal risk
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