HDFC SIP plan is well known. Most of the investors invest in HDFC mutual funds. At present, mutual funds are the high money yielding investments. High risk is also involved in investing in these funds and shares. SIP is Systematic Investment Plan. Monthly investments are made in this plan. It is much similar to the recurring deposit. SIP plans are famous because they have numerous advantages. Advantages are listed here below.
SIP Plans Advantages:
- It is economical.
- It makes you a disciplined investor.
- Rupee cost averaging and lower per unit acquiring cost is possible.
- It enables the investment to grow with the compounded benefits.
- It helps you to achieve financial goals.
Middle class people as well as rural people can invest in this plan. Monthly investments are very low in range of 100 to 500 rupees. So, it is economical. By investing, you will oblige to pay the monthly amount. This plan disciplines middle class and rural people. The investment will slowly increase and yield high returns. This helps the investors to achieve their financial goals. Usually, monthly investments are paid for months and years. In this time period, more number of units is bought at low NAV and less number of units is bought at high NAV. This leads to rupee cost averaging. Due to long time frame, averaging takes place and shares are bought at low cost.
HDFC Bank has introduced many mutual fund schemes. HDFC Top 200 scheme is a famous one. This scheme has systematic investment plan. The SIP investment return is 30.6%, whereas non SIP investment return is 27.51%.