HDFC Mutual Fund SIP calculator

SIP or Systematic Investment Plans are financial instruments that allow investors to invest a fixed sum regularly in Mutual Funds of their choice. With these investment plans, a fixed amount is deducted from the investor’s savings account each month and is directed towards their selected Mutual Funds. An individual can opt for weekly, quarterly or monthly investment plans for SIPs.

Most investors have a common misconception that SIPs are a category of Mutual Fund. SIPs are, however, one of the methods of investing in Mutual Funds, while the other method is lump-sum investments.

For instance, investors can choose to invest in Equity Linked Savings Scheme (ELSS) Mutual Funds through SIPs. Investing in these Mutual Funds offers investors tax benefits of up to Rs. 1.5 Lakh on their principal amount under Section 80C of the Income Tax Act.

HDFC is one such financial institution that offers individuals an option to invest in Mutual Funds through SIPs. Furthermore, this institution also offers investors the benefits of HDFC SIP calculator, which can help them, calculate the returns they can avail by investing their capital in these funds.

How Can a SIP Calculator HDFC Help You?

SIPs make for a more preferred choice of investing in Mutual Funds for many investors because they allow them to invest small quantum of capital over a period of time rather than make a lump-sum payment at one go. It is also a much more lucrative way of investing, allowing individuals to avail a much more disciplined approach towards their investments.

The HDFC SIP calculator, additionally, makes for a beneficial tool in the individual’s arsenal and enables them to gauge the future value of the amount they have invested. Following are a few benefits that investors that avail by using an online SIP calculator –

  • It helps investors make an informed decision about the amount they want to invest.
  • Helps investors gauge the returns they will receive from their investment.
  • It enables individuals to determine their periodic SIP investment amount to help them reach a particular goal.
  • The HDFC SIP plan calculator allows investors to calculate their SIP investment returns if they choose to top-up their amount each year.

How does an HDFC SIP Mutual Fund Calculator Work?

An HDFC mutual fund SIP calculator uses the following formula to calculate the returns from an individual’s SIP investment –

M = P × [{(1 + i) ^n – 1} / i] × (1 + i)

Where M is the amount received on the investment’s maturity, P is the amount invested periodically, n is the number of payments already made, and i is the rate of interest applicable.

For instance, an individual chooses to invest Rs. 2000 each month for 12 months at a rate of interest of 14%.

In this case, the amount investors will receive on maturity will be given by –

M = 2000 X [{(1+14)^12 – 1 }/ 14] x (1 + 14)

Therefore, M = Rs. 25,900 (approx.)

However, investors should remember that the applicable rate of interest on SIPs varies according to market conditions. Therefore, they should be cautious while entering the data in the HDFC SIP calculator.

Following are the returns individuals can avail by investing in the best HDFC SIP Mutual Funds –

Fund Name 1-year return 3-year return
HDFC Hybrid- Equity Fund 1.58% 8.61%
HDFC Mid-Cap Opportunities Fund -10.49% 4.9%
HDFC Top 100 Fund -0.38% 9.63%
HDFC Equity Fund -5.95% 8.53%

Advantages of Using Groww’s SIP Calculator – 

Investors can avail the following advantages by using the Groww’s HDFC SIP Mutual Fund calculator –

  • Allows investors to calculate the total investment value at the end of investment tenure.
  • The HDFC SIP calculator helps investors plan their investment and based on their expected returns from the same.
  • Saves time and inaccuracies of manual calculations.

These calculators are, thus, extremely useful tools that can help investors make comprehensive financial decisions regarding their investments and follow them through to maximise the benefits availed.

“Looking to invest? Open an account with Groww and start investing in direct Mutual Funds for free”

Frequently Asked Questions

  • What is referred to as “Till cancellation” in a SIP?

Some SIPs offer a period – “Till cancellation”, within which the requisite SIP amount is deducted from an account at the predetermined frequency until the investor chooses to cancel the plan.

  • What is the minimum amount for investing in SIPs?

Investors can choose to invest a minimum amount of Rs. 500 in their Mutual Fund through SIP, each month.

  • What is the SIP step-up feature?

A SIP step-up feature enables investors to increase their investment installment amount periodically, by a particular amount in a specific interval. Investors can choose to increase their investment amount at a minimum interval of 6 months and by a minimum installment amount of Rs. 100.

  • What does a “Pause” in SIP refer to?

The Pause feature of a SIP allows investors to halt their SIP installment from getting deducted for three payments periods. Investors can choose to cancel this pause feature and resume investments at their own volition.

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