HDFC SIP Plans: Explore Top Investment Options for 2024

HDFC Mutual Fund is one of the 44 mutual fund houses in the country. HDFC Asset Management Company (HDFC AMC) was set up in 1999 as a joint venture between Housing Development Finance Corporation Limited (“HDFC”) and Standard Life Investments Limited (“SLI”). The company was listed during the financial year ended March 31, 2019.

According to their website, the retail and international customer base consists of 9.3 million live accounts.

The AMC has a fund each in almost all mutual fund categories. At the end of December 2020, the AMC had Rs 3,84,170.04 crores of assets under management (AUM), making it the second-largest AMC by AUM.

Below is a list of the best HDFC mutual fund for the SIP facility. Do note that every scheme’s minimum eligible SIP amount may be different. Monthly SIPs start as low as Rs 100 per month and can go up to Rs 2,000 per month as well, or even higher. The minimum SIP application amount is completely dependent on the AMC, the fund manager of the scheme and the objective of the same.

Disclaimer: These might be the best HDFC mutual fund to invest in 2021. Please note that the fund house may add or remove any of these funds or change the characteristics. This is also not a recommendation to invest in these funds. This is solely for informational purposes only. The list was last updated on February 4, 2021.

Equity Funds

HDFC AMC has around 9 equity mutual funds across different categories: large-cap, mid-cap, small-cap, ELSS and more. Click on the links to find out more details about the funds like returns, expense ratio, respective fund managers and more.

1. HDFC Small Cap Fund
2. HDFC Mid Cap Opportunities Fund
3. HDFC Flexi Cap
4. HDFC Growth Opportunities Fund
5. HDFC Top 100 Fund
6. HDFC Taxsaver Plan
7. HDFC Focussed 30 Fund
8. HDFC Infrastructure Fund
9. HDFC Capital Builder Value Fund

Debt Funds

There are around 16 best HDFC mutual fund for SIP in the debt fund category.

1. HDFC Corporate Bond Fund
2. HDFC Ultra Short Term Fund
3. HDFC Short Term Debt Fund
4. HDFC Liquid Fund
5. HDFC Banking and PSU Debt Fund
6. HDFC Medium Term Debt Fund
7. HDFC Dynamic Debt Fund
8. HDFC Income Direct Fund
9. HDFC Credit Risk Fund
10. HDFC Multi-Asset Fund
11. HDFC Low Duration Fund
12. HDFC Gilt Fund
13. HDFC Overnight Fund
14. HDFC Money Market Fund
15. HDFC Arbitrage Fund Wholesale
16. HDFC Floating Rate Debt Fund

Other Categories

The AMC also has fund of funds (FoF), hybrid funds and index funds as a part of its offerings which a SIP facility.

Fund of Funds

• HDFC Gold Plan
• HDFC Dynamic PE Ratio FoF

Hybrid Funds

• HDFC Retirement Savings Fund Hybrid Equity
• HDFC Retirement Savings Fund Hybrid Debt
• HDFC Hybrid Debt Fund
• HDFC Balanced Advantage Fund
• HDFC Hybrid Equity Fund
• HDFC Equity Savings Fund

Index Funds

• HDFC Index Nifty 50 Plan
• HDFC Index Sensex Plan

Solution-Oriented

• HDFC Retirement Savings Fund Equity Plan

This is the list for the best sip plan in hdfc mutual fund as last updated on December 15. The fund house may make changes to their offerings.

Factors To Consider Before Investing in an HDFC MF SIP

There are no specific factors to consider before investing in an SIP belonging to a particular AMC. Keeping the broader product structure in mind, we can list the following factors:

1. 1. Access to Regular Income: This is the foremost factor to consider before investing through the SIP route. Since monthly SIPs require you to invest regularly, you should have a regular stream of income. Not having access to a regular income can lead to failure of paying for one or a few SIP instalments.
   2. Goals and Objectives: The next step is to know if tour goals from the investment is in line with the objectives of the scheme. This is not a SIP-specific pre-requisite but goes with any investment you make. This will involve you picking the right asset class: equity or debt ora mix of both via hybrid funds.
   3. Risk: While picking an asset class, also price in the amount of risk you can take.
   4. Calculate your investment needs: In SIP, you will need to have a brief idea about how much money you are looking to get from your investment. This will help you to analyse how long you would want to continue with the SIP.
   5. Commitment: Any form of investment requires a level of commitment, more so with SIPs because of the regular deduction of a select amount from your bank account. Even though SIPs have a pause and exit feature, long term commitment can help you get a good value for money.
   6. Lock-In: This factor becomes relevant in the case of ELSS schemes. ELSS or equity-linked savings schemes are tax-saving equity mutual funds that have a lock-in period of three years. If you do an SIP in an ELSS scheme, each instalment will have a lock-in of three years.

Here’s an example of this for a better understanding: 

Month 1

SIP in an ELSS Scheme: Rs 1,000

Date: January 15, 2021

Lock-in: January 15, 2024

Month 2

SIP in an ELSS Scheme: Rs 1,000

Date: February 15, 2021

Lock-in: February 15, 2024

To put this into words, every monthly SIP instalment will have a lock-in period of three years. So the investment made in January 2021 will be available for withdrawal only in January 2024. This will go on for every investment.

Final Words

Whether its the best HDFC SIP Plan, or any other AMC, the basic homework before making an investment always remains the same. Understand your personal investor profile and the product to make an informed investment.

Happy Investing!