HDFC Mutual Fund Retirement Scheme:While planning investment for retirement, it is important to choose a scheme that has the potential to give better returns in the long term. In this regard, investors can consider such mutual funds investing in equity, which invest keeping retirement in mind. HDFC Retirement Savings Fund – Equity Plan is one such open-ended retirement solution oriented scheme. This is a Notified Tax Savings Cum Pension Scheme, in which tax can also be saved by investing. The good thing is that this scheme has given tremendous returns to investors through its better performance in the last 5 years. If you had made a monthly SIP of Rs 10,000 with a lump sum investment of Rs 1 lakh in this scheme 5 years ago, then today the fund value of your investment would have been more than Rs 16 lakh.
Scheme giving best returns in 5 years
HDFC Retirement Savings Fund – Equity Plan has given the best annual return of 27.82% in the last 5 years in the retirement fund category. It is a reliable option for investors looking for long term investment options for retirement purposes.
– 5-year return (Direct plan): 27.82%
– 5-Year Return (Regular Plan): 26.28%
– SIP Return (Annualized): 31.02%
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How to create a fund of Rs 16 lakh from a SIP of Rs 10,000
If you had made a lump sum investment of Rs 1 lakh in HDFC Retirement Savings Fund – Equity Plan 5 years ago and also started a monthly SIP of Rs 10,000, the total value of your investment today would have been as follows:
- Lumpsum Investment : Rs 1 lakh
- Monthly SIP for 5 years: Rs 10,000
- Total Investment in 5 Years:Rs 7 lakh
- Current Fund Value:Rs 16,24,379 (Rs 16.24 lakh)
These figures show how long term investments and regular SIPs can help you grow your capital significantly.
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Past returns and expense ratio of the scheme
The 8-year-old HDFC Retirement Savings Fund – Equity Plan has consistently delivered excellent returns since its launch. The expense ratio of the scheme’s direct plan is also quite low.
- 1 Year Return: 38.05%
- 3 Year Return: 23.65%
- 5 Year Return: 27.82%
- 7 Year Return: 19.72%
- Since inception (8 year return): 22.88%
– Expense ratio of direct plan: 0.67%
– Expense ratio of Regular plan: 1.78%
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Investment Strategy and Asset Allocation
HDFC Retirement Savings Fund – Equity Plan is an open-ended retirement solution oriented scheme. It is a Notified Tax Savings Cum Pension Scheme, with at least 80% of its portfolio invested in equity and equity-related instruments. This fund can invest in companies of any size. Its objective is to achieve good growth over the long term.
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Current asset allocation of the scheme
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Investment in Equity : 91.91%
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Net worth in cash and cash equivalents: 7.24%
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Investment in real estate: 0.84%
Top holdings of the scheme
The top holdings of HDFC Retirement Savings Fund – Equity Plan include leading Indian companies that have the potential to deliver stable and high returns in the long term:
– HDFC Bank: 7.62%
– ICICI Bank: 6.13%
-Infosys: 3.55%
– Axis Bank: 3.13%
-Reliance Industries: 3.01%
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Risk and lock-in period
HDFC Retirement Savings Fund – Equity Plan is classified as ‘very high risk’ as it invests primarily in equities, so you should evaluate your risk-taking ability before investing in it. This fund also has a lock-in period of 5 years or till the age of retirement. This fund can be a good option for those investors who have the ability to take risks and want to invest for the long term.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment in any scheme. Take any investment decision only after getting complete information and taking the advice of your investment advisor.)
