SIP



11
  
Traditionally, most of us have been harsh on the idea of being “average”
as we keep saying “that was an average movie”, “she is just an average
student”, etc.

Our argument to that is, “average” is not just good enough, but is ‘the
thing’ one should strive to achieve as far as equity investing by
individual investors is concerned.

All I Knew Is That I Never Wanted To Be Average - Michael Jordan

Never settle for Average - Steve Jobs

Success and average don’t have anything to do with each other

- Eric Thomas

Warning: These quotes may not be applicable to individual investors in the

world of Equity Investing

2
 Rupee Cost Averaging :
Automatically invest a particular amount in a scheme periodically i.e. daily, weekly,
monthly or quarterly irrespective of the ups and downs of the market movement. Rupee
cost averaging helps an investor to average out his / her cost by buying more units when
the market is down, and less units when the market is up.

An example of a 51-month* SIP done in HDFC Flexi Cap Fund through

COVID-19 crisis and multiple geopolitical conflicts

1700 HDFC Flexi Cap - Rupee Cost Averaging 25

23
1500
21
Fund's NAV (in ₹)

Units Purchased
1300 19
17
1100
15
900 Recovery from the pandemic
COVID-19 led fall 13
and multiple geopolitical tensions
700 11
9
500
7
300 5
Jan/20
Feb/20
Mar/20
Apr/20
May/20
Jun/20
Jul/20
Aug/20
Sep/20
Oct/20
Nov/20
Dec/20
Jan/21
Feb/21
Mar/21
Apr/21
May/21
Jun/21
Jul/21
Aug/21
Sep/21
Oct/21
Nov/21
Dec/21
Jan/22
Feb/22
Mar/22
Apr/22
May/22
Jun/22
Jul/22
Aug/22
Sep/22
Oct/22
Nov/22
Dec/22
Jan/23
Feb/23
Mar/23
Apr/23
May/23
Jun/23
Jul/23
Aug/23
Sep/23
Oct/23
Nov/23
Dec/23
Jan/24
Feb/24
Mar/24

HDFC Flexi Cap Fund - Growth (NAV) Units Purchased

Source: MFI Explorer, Last Date of SIP in the chart above: March 01, 2024

Monthly* Installment of ₹10,000 No. of units bought in November 2023 – 8

(*SIP Date-1st business day of every month)
No. of units bought in Apr 2020 – 23 Rupee Cost Averaging at its best

SIP - Systematic Investment Plan 3

Market Cycles:
Markets oscillate between high (overvalued) and low (undervalued) levels from time
to time.

Average
Line
Peak
Price

Bottom

Time

WHAT TO DO?

Buy Low and Sell High? But, this is Capture the average?
impossible to do on a consistent basis This is the smarter thing to do.

How to achieve this?

A Simple SIP is good enough to capture the average.

4
 Average
Line
Peak
Price

Bottom

Time

Monthly installments through market cycle

5
      
 
   

Factors in favour of India's growth over the next few decades :

Favourable demographics

Large availability of skilled, young, English speaking and competitive manpower

Rich in natural resources

Low penetration of consumer goods and improving affordability

Large unmet needs of infrastructure

Strong reforms momentum

Shift underway in global manufacturing

Among the fastest growing economies in the world

Participate in India’s growth story with SIPs

Indian economy is expected to grow at a healthy rate over the next few decades

The healthy economic growth to reflect in terms of robust growth in businesses

The growth in businesses could have a positive impact on returns on equity

investments

6
6
HOWEVER...

7
     
  ­

Greed: An investor who had invested in equity

NIFTY 50 Financial Year Returns markets at the start of FY 2010
(when markets jumped 74%) gets caught up in
greed with a desire to acquire as much
wealth as possible in the shortest time.

Financial Year Return (%)

100%

80% 75% 73%

70%
60%

40% 28% 30%

25%
17% 19% 20% 16% 20%
20% 14% 12% 12%
9%
1%
0%

-20% -8% -8%

-40% -25%
-35%
-60%
FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022

FY2023

FY2024

Fear: Conversely, an investor who had invested

a large sum of money at one go, in equity
markets at the start of FY 2009 (when markets
corrected) would always perceive equity markets
as risky and would generally avoid equities.

Volatility in markets leads us to take emotional decisions.

Hence, SIP is a disciplined way to invest in equities for individual investors.

#Volatility refers to frequent and extreme upward and downward movements in stock prices.

8
 €   
 ‚
  
Greed and Fear in Market Cycles
Human beings are guided by 2 extreme emotions "Greed" and "Fear", which prevent
them from taking sound investment decisions.

When there are excesses in the stock market, Greed sets in, which in turn results in
major correction, thereby triggering the Fear psychology. Most of the investors are
trapped in the greed and fear cycles by buying in greed and selling in fear, resulting
in a bad investment experience.

Just made handsome gains Just made large losses An SIP Investor

I am sure I can repeat my I should never have made I am ready for the long
Approach to investing success these investments journey ahead

Urge to act Yes Yes No

Moves to increase exposure

Impact on asset No change; Maintains
to equities beyond optimal Exits equities
allocation levels
balance

The stock market is a device for transferring money from the

impatient to the patient. - Warren Buffett

9
 ƒ  „­
Events that have impacted the markets :

1997 Asian Currency Crisis

1998 Pokhran Nuclear Test, US Sanctions

1999 Kargil War, NDA forms Central Government

2000 Dot Com Bubble

2001 9/11 Terror Attacks in US

2004 NDA loses Lok Sabha elections

2008 Collapse of Lehman Brothers,Global Financial Crisis
2009 Rulling UPA re-elected in India, Satyam Scam

2010 European Sovereign Debt Crisis

2011 USA’s Credit Rating downgraded

2013 Taper Tantrum ( Surge in US Yields), High Twindelicit in India (CAD and
Fiscal Deficit)
2014 NDA forms Central Government

2016 Demonetisation, Brexit

2017 GST Rollout

2018 Trade War, Surge in Crude Oil Price

2019 NDA forms Central Government

2020 COVID-19

2022 Ukraine Russia war

2023 Israel-Hamas War

Relevance of these events for a long term SIP investor?

Nil
Let’s look at an example..
10
 Long term SIP in HDFC Flexi Cap Fund
A Truly Rewarding Journey

Let's assume an investor who started an SIP of ₹1,000 in HDFC Flexi Cap Fund - Growth,
and continued this till March 31, 2024
1800
1,604.76
1600
1400
1200
1000
800
600
400
200 32.04
0
Jan-95
Jun-95
Nov-95
Apr-96
Sep-96
Feb-97
Jul-97
Dec-97
May-98
Oct-98
Mar-99
Aug-99
Jan-00
Jun-00
Nov-00
Apr-01
Sep-01
Feb-02
Jul-02
Dec-02
May-03
Oct-03
Mar-04
Aug-04
Jan-05
Jun-05
Nov-05
Apr-06
Sep-06
Feb-07
Jul-07
Dec-07
May-08
Oct-08
Mar-09
Aug-09
Jan-10
Jun-10
Nov-10
Apr-11
Sep-11
Feb-12
Jul-12
Dec-12
May-13
Oct-13
Mar-14
Aug-14
Jan-15
Jun-15
Nov-15
Apr-16
Sep-16
Feb-17
Jul-17
Dec-17
May-18
Oct-18
Mar-19
Aug-19
Jan-20
Jun-20
Nov-20
Apr-21
Sep-21
Feb-22
Jul-22
Dec-22
May-23
Oct-23
Mar-24

HDFC Flexi Cap Fund - Growth (NAV) Average Cost per Unit (in ₹)

Source: MFI Explorer.

Can you guess what is average cost of the units accumulated via SIP?
Answer - ₹32.0

The reason for lower average cost is the disciplined approach to investing where more
units were accumulated at lower NAV during the early stage of the SIP period.

11
    
We can broadly divide two types of people who need
SIP for investing

Ones who understand Ones who do not

markets and basics of understand markets
investing and basics of investing

SIP is like a basic

need of every individual.
Food, Clothing,
Shelter and SIP

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  ­   †  

HDFC MF SIP - Tenure chosen by investors

87%
79%

Most of our SIP investors

think long term

Over 5 Years Over 10 Years

Source: Internal
Based on tenure at the time of registration of all live SIPs during December 2023.
13
 ‡ ˆ‰ ‚
No doubt laziness and forgetfulness are negative human traits,
but can prove useful in stock markets for individual investor for
“staying invested” for a long time.

Advantages in the “invest and forget” approach:

Risk in equities reduces with long term approach

No need to lose sleep over market movements

No need to track your investments every now and then

No urge to keep ‘doing something’

Do something today that your future self will thank you for
- Sean Patrick Flanery

You have to act and act now - Larry Ellison

Success is not easy and it is certainly not for the lazy - Anonymous

Warning: These quotes may not be applicable to individual investors in the world
of Equity Investing

12
14
‰Š‹„ ‚‚ 

Start Early Stay invested

Invest Ensure asset

Regularly allocation

Let’s look at them in detail!

13
15
  Œ ƒ „­ Ž

The below illustration is to showcase how you need to invest larger sums as
you delay your retirement saving and how much it costs you in the long run.
S&P BSE Sensex has delivered a rate of return of 14.38% for a period of 28 years
(PRI values considered), 14.84% for a period of 20 years, and 14.97% for a period
of 10 years (TRI values considered).

Start @ 32 Yrs Start @ 40 Yrs Start @ 50 Yrs

Investment Amount Per Month 5,000 7,000 14,000

Amount Invested 16,80,000 16,80,000 16,80,000

Rate of Return (p.a)* 14.38% 14.84% 14.97%

Value of Retirement Corpus @ 60 Years of age 2,27,09,519 1,03,67,373 38,93,209

Delay by 10 years would reduce your corpus by NA 54.3% 62.4%

…A delay in 10 years would have cut your retirement corpus by more than 50% at
every step even though you may have invested the same amount over time.

Source: MFI Explorer

Past performance may or may not be sustained in future and is not a guarantee of any future returns.
HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering / communicating any indicative yield on
investments made in the scheme(s).

*Returns: Mean of 28-year daily rolling returns of S&P BSE Sensex between 03/04/2007 and 29/02/2024, Mean of
20-year daily rolling returns of S&P BSE Sensex TRI between 19/08/2016 and 29/02/2024, Mean of 10-year daily rolling
returns of S&P BSE Sensex TRI between 21/08/2006 and 29/02/2024. Since the values of S&P BSE Sensex TRI are
available from 19-Aug-1996, PRI values have been used for the calculation of rolling returns for the 28-year period

16
 ‹
SIP helps to stay disciplined in your investment journey

A small sacrifice Skip 1 cigarette per Skip 1 beer over Spend less on
day i.e., 365 weekend i.e., 52 movies / dinner
cigarettes in a year beers over a year

Cost of 1 cigarette - Cost of 1 pint - Spend ₹1500 less

Cost ₹18 ₹300 on movies / dinner
every month

Amount Saved 6,570 15,600 18,000

per year (in ₹)

If you had invested the amount saved annually in S&P BSE Sensex for the
next 30 years, the accumulated amount as on February 29, 2024 is as follows:

Rate of Return(%)* 14.57 14.57 14.57

Accumulated
amount at the end 30,06,789 71,39,408 82,37,778
of 30 years (in ₹)

Do not save what is left after spending, but spend what is left
after saving - Warren Buffet

*Returns: Mean of 30-year daily rolling returns of S&P BSE Sensex between 06/04/2009 and 29/02/2024.
Since the values of S&P BSE Sensex TRI are available from 19-Aug-1996, PRI values have been used for the
calculation of rolling returns

Past performance may or may not be sustained in future and is not a guarantee of any future returns.
HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering / communicating any indicative yield on
investments made in the scheme(s).
17
 ‘     ’

 “   
The “right time to start an SIP” still tends to elude a lot of investors. However, this is actually
counter-intuitive in SIPs as the main idea of starting an SIP is to eliminate the need to time
the market.
Example of starting regular investing early resulting in long term:
HDFC Mid-Cap Opportunities Fund (launched in 2007)
Take the event of Global Financial Crisis (GFC) of 2008 where NIFTY corrected by almost 60%
in a span of 9 months (January 2008 to October 2008). There could have been investors who
would have started an SIP near the peak in January 2008 and some who would have started
one closer to the bottom in November 2008.

SIP from GFC peak (From January 2008 till March 2024)
Invested Amount* Profit Market Value of Investment* Return
SIP in
(in ₹ lakh) (in ₹ lakh)* (in ₹ lakh) (% CAGR)

HDFC Mid-Cap
Opportunities Fund 19.5 111.1 130.6 20.7

Benchmark (NIFTY
19.5 92.3 111.8 19.1
Mid Cap 150 TRI)

*As on March 31, 2024, SIP of ₹10,000 on first day of month considered

SIP from GFC bottom (From November 2008 till March 2024)
Invested Amount* Profit Market Value of Investment* Return
SIP in
(in ₹ lakh) (in ₹ lakh)* (in ₹ lakh) (% CAGR)

HDFC Mid-Cap
Opportunities Fund 18.5 95.9 114.4 21.1

Benchmark (NIFTY
18.5 82.6 101.1 19.7
Mid Cap 150 TRI)

*As on March 31, 2024, SIP of ₹10,000 on first day of month considered
Common disclaimer for both the tables: For complete performance details, refer Page 30. Past performance may or may not be
sustained in future and is not a guarantee of any future returns. HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering /
communicating any indicative yield on investments made in the scheme(s).
For complete performance of the Scheme in SEBI prescribed format, please refer page no 30

Whether investors started an SIP when NIFTY was above 6,000 in January 2008 or when NIFTY
was close to 3,000 in November 2008, it did not have a material bearing on their SIP returns
over the long term. If at all anything, the delay on account of waiting for the bottom and
starting the SIP later would have resulted in less wealth creation to the tune of ~16 lakh
(₹130.6 lakh vs ₹114.4 lakh). In contrast, invested amount would have been lower by only
₹1 lakh (₹19.5 lakh vs ₹18.5 lakh or ₹10,000*10 installments). 18
    ƒ 
To benefit from SIP, one should invest on periodic basis and not allow emotions to
drive their investment decisions.

Below table shows example of two individuals, Mr. A and Mr. B, both started their SIP
journey in HDFC Flexi Cap Fund on 1st April 2018. During the beginning of COVID 19,
Mr. A paused his SIP for 6 months between April 2020 and October 2020 (driven by fear
of COVID 19 impact on markets) while Mr. B continued with his disciplined approach of
investing regularly. Here are the results:

A B

SIP Start Date 1st April 2018 1st April 2018

SIP Pause Yes No
Pause Period 6 months NA
Amount Invested 6,60,000 7,20,000
Market Value as on
12,82,244 14,68,240
March 31, 2024

Difference 1,85,997

Lenin said that, There are decades where nothing happens,

and there are weeks where decades happen.

Past performance may or may not be sustained in future and is not a guarantee of any future returns.
HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering / communicating any indicative yield on
investments made in the scheme(s).
For complete performance of the Scheme in SEBI prescribed format, please refer page no 30 19
 ‘ ‰”  ‚  ­ 

   „‰ 
Systematic Investment Plans (SIPs) in mutual funds can be done at multiple frequencies – daily,
weekly, monthly and quarterly. A common dilemma in an investor’s mind tends to be the choice
of frequency when doing an SIP in a scheme. Against this backdrop, let us look into the data to
clear that dilemma.

Let’s consider 4 frequencies – daily, weekly, monthly and quarterly of an investor’s ongoing SIPs in
the Regular Plan of HDFC Flexi Cap Fund (the Scheme). The chart below shows the SIP returns
generated under different frequencies vis-à-vis NIFTY 500 TRI over a 5-year and 10-year period.

Last 10 years Last 5 years

HDFC HDFC
Frequency NIFTY 500 TRI Frequency NIFTY 500 TRI
Flexi Cap Fund Flexi Cap Fund
of SIP* (SIP Returns) of SIP* (SIP Returns)
(SIP Returns) (SIP Returns)

Daily SIP 17.96% 16.21% Daily SIP 26.69% 21.59%

Weekly SIP 17.94% 16.20% Weekly SIP 26.58% 21.53%

Monthly SIP 17.93% 16.19% Monthly SIP 26.58% 21.56%

Quarterly SIP 18.03% 16.28% Quarterly SIP 26.65% 21.72%

Source: MFI Explorer, Returns as on March 31, 2024. *SIP done at the end of every day / week / month / quarter.
Returns are compounded annualized in nature.
Past performance may or may not be sustained in future and is not a guarantee of any future returns.
For complete performance of the Scheme in SEBI prescribed format, please refer page no 30

As we can observe from the table above, among the frequencies chosen, the divergence
in returns for the Scheme and NIFTY 500 TRI for both time frames has been very low.

It turns out that starting an SIP, and continuing with it for a long period, is more
important than the frequency of SIP.

An interesting and an encouraging trivia:

79% of the SIP investors in the Schemes of HDFC MF have chosen an investment tenure
of over 10 years!
20
 “ • ­   
Why Top-up?

01 02 03
Let your SIPs keep Aim to build a Convenient way to increase SIP
pace with inflation sizeable corpus vs manually registering for new SIPs

How does it work?

An Illustration

SIP Period: Monthly initial SIP Date: Top-up Top-up

01-Feb-2014 to SIP Installment 1st of every Percentage: Frequency:
01-Jan-2024 Amount: month (120 10% Annual
(10 Years) ₹3,000 instalments)

Top-up SIP Top-up SIP Installment Final Value

Instalment From To Amount round off including Top-up of Investment
No(s). Date Date [10% increase] (Amount in ₹) (Amount in ₹) (in ₹)

1 to 12 01-Feb-14 01-Jan-15 0 0 3,000 38,575

13 to 24 01-Feb-15 01-Jan-16 300 300 3,300 87,194
25 to 36 01-Feb-16 01-Jan-17 330 330 3,630 1,47,854
37 to 48 01-Feb-17 01-Jan-18 363 360 3,990 2,22,909
49 to 60 01-Feb-18 01-Jan-19 399 400 4,393 3,15,135
61 to 72 01-Feb-19 01-Jan-20 439 440 4,832 4,27,800
73 to 84 01-Feb-20 01-Jan-21 483 480 5,312 5,64,746
85 to 96 01-Feb-21 01-Jan-22 531 530 5,845 7,30,488
97 to 108 01-Feb-22 01-Jan-23 585 580 6,426 9,30,327
109 to 120 01-Feb-23 01-Jan-24 643 640 7,071 11,70,485

Topping up / increasing a ₹3,000 SIP by just 10% every year increases the corpus at the end of 10 years by 45%

Rate of Return over the tenure - 14.97%*

With Normal SIP, Market Value of Investment: ₹8.21 lakh
With Top-Up SIP, Market Value of Investment: ₹11.70 lakh

*Returns: Mean of 10-year daily rolling returns of S&P BSE Sensex TRI between 21/08/2006 and 29/02/2024.
Past performance may or may not be sustained in future and is not a guarantee of any future returns.
HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments
made in the scheme(s). 21
 ‹     

Assume you had taken a home loan of ₹32 lakh in 2004 at the rate of 8.25%^. The EMI
payable for 15 year period would have been ₹31,044. However, if you had extended the
loan period to 20 years, the same EMI would have reduced to ₹27,266.

So rather than taking a shorter loan period, you could have opted for a 20 year loan
period and started an SIP of the differential amount i.e. ₹3,778 in an Equity Mutual Fund
scheme of your choice.

Who is smarter at
repaying a home loan
of ₹32 Lakhs? Mr. X Mr. Y

Loan repayment term 15 years 20 years

EMI per month started in 2004^ (in ₹) 31,044 (A) 27,266 (B)
SIP per month in S&P BSE Sensex - 3,778 (A-B)
TRI in 2004 (in ₹)
After 15 years
Total EMI paid (in ₹) 55,88,008 49,07,898
Total SIP Investment NIL 6,80,110
Rate of Return of S&P BSE Sensex TRI (p.a.)* - 14.37%
Principal outstanding (in ₹) NIL 13,36,819
Total SIP Corpus# (in ₹) - 24,02,648
SIP corpus left after paying
O/S principal (in ₹) 10,65,829

^Source: SBI Home Loans: 8.25% is the floating rate for a home loan (greater than 10 years).
*Returns: Mean of 15-year daily rolling returns of S&P BSE Sensex TRI between 19/08/2011 and 29/02/2024.
Past performance may or may not be sustained in future and is not a guarantee of any future returns. HDFC AMC / HDFC
Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s).

22
 Alternatively, if you could not opt for a 20 year home loan due to
any reason, you could have chosen to set aside a marginal amount
(0.25% of loan amount of ₹32 lakh) from your savings and started
an SIP with a aim to recover the interest on your loan.

Principal (in ₹) 32,00,000

EMI per month (in ₹) 31,044*
Total EMI to be paid over 15 years (in ₹) 55,88,008
Hence, total interest to be paid (in ₹) 23,88,008

Start an SIP which is 0.15% of loan amount

Rate of Return# 14.37%

SIP per month in an equity-oriented scheme (in ₹) 8,000

(Monthly SIP as a % of Loan Principal)

Total SIPs over 15 years (in ₹) 14,40,000

Final value of SIP after 15 years (in ₹) 50,87,136
Capital Appreciation (in ₹)
(greater than the interest component of home loan) 36,47,136
Difference (SIP Appreciation-Interest on Loan) 12,59,128

*Source: SBI Home Loans: 8.25% is the floating rate for a home loan (greater than 10 years). #Returns: Mean of 15-year daily rolling
returns of S&P BSE Sensex TRI between 19/08/2011 and 29/02/2024. Past performance may or may not be sustained in future and
is not a guarantee of any future returns. HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering / communicating any
indicative yield on investments made in the scheme(s).

23
  ‹ 
Channelize your SIP into three different asset classes

SIP

Equity Debt Gold

HDFC Flexi Cap Fund HDFC Corporate Bond Fund HDFC Gold Fund^

HDFC Top 100 Fund HDFC Low Duration Fund

HDFC Mid-Cap
HDFC Medium Term Debt Fund
Opportunities Fund

HDFC Small Cap Fund

These are some of the funds offered by HDFC Mutual Fund.

These are not recommendations, investors should consider their risk profile or consult their advisors before investing.
^Note: Investors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes
in which Fund of Funds scheme makes investment (subject to regulatory limits)

24
  ‚   
 

Wealth Retirement Children’s

creation education

25
 Œ †  ‰
 
How much is enough?

With rising education costs across all professional degrees,

saving for education becomes even more imperative

Child care costs also include additional costs of housing,

transportation, clothing, food, health care, etc.

Long term equity investing is a suitable medium to

combat ever increasing costs
Cost of
education

Cost of Education is rising

much faster than inflation

Inflation

The above chart is only an illustrative example to show rising cost of education and not based on actual data.

26
  ‹   
‚₹ – 
What to do? How to Do?
How much do I need to invest The amount you need to invest is a result
every month? of the rate of return and time.

Retirement Planning Retirement

Illustration: Monthly Investment Amount to The earlier you start, the easier you ₹ Corpus
reach a target corpus of ₹1 crore at age of 60 save money for retirement

Rate of Return Monthly SIP you

Age (Compounded would have
Annually)* required

30 14.57% ₹ 1,576

40 14.84% ₹ 6,752

50 14.97% ₹ 35,960 Age 30 Age 40 Age 50 Retired at

Age 60

*Returns: Mean of 30-year daily rolling returns of S&P BSE Sensex between 03/04/2007 and 29/02/2024, Mean of 20-year daily rolling
returns of S&P BSE Sensex TRI between 19/08/2016 and 29/02/2024, Mean of 10-year daily rolling returns of S&P BSE Sensex TRI
between 21/08/2006 and 29/02/2024. Since the values of S&P BSE Sensex TRI are available from 19-Aug-1996, PRI values have been
used for the calculation of rolling returns for the 30-year period

Key Takeaways

Start Early Invest Regularly Stay Invested

Source: MFI Explorer

Past performance may or may not be sustained in future and is not a guarantee of any future returns.
HDFC AMC / HDFC Mutual Fund is not guaranteeing / offering / communicating any indicative yield on
investments made in the scheme(s).
27
 † 

HDFC Flexi Cap Fund (History of SIP)

2,000 1,758.79
1,800 (₹17.59 crore)
1,600
Amount (in ₹ lakh)

1,400
1,200
1,000
800
546.36
600 (₹5.46 crore)
400
200
35.1
(₹35.1 lakh)
0
1995
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Market Value of Invesment in HDFC Flexi Cap Fund (as on March 31, 2024)
Cumulative Amount Invested (as on March 31, 2024)
Market Value of Invesment in Benchmark (NIFTY 500 TRI)(as on March 31, 2024)

SIP per Total Market Value as on Investment would Time

CAGR
Month Investment March 31, 2024 have grown Taken

₹10,000 ₹35.1 Lakh ₹17.59 crore 21.25% 50 times 29 years

A SIP of ₹10,000 per month in HDFC Flexi cap Fund since Inception (January 01, 1995)
would have grown to ₹17.59 crore as on March 31, 2024.
For complete performance of the Scheme in SEBI prescribed format, please refer page no 30.
28
  ‚“ —˜
    
Clarity of Purpose:
Clearly defined financial goals bring focus and alignment to
your investment decisions.

Emotions Management:
Goal-based SIPs reduce the impact of emotional biases, such as fear,
greed, or impulsive reactions to market fluctuations, on your
investment choices.

Avoid Impulsive Withdrawals:

Goal based SIPs serve as a deterrent against impulsive fund
withdrawals, as you understand that tapping into SIP funds can hinder
progress toward your intended financial objectives.

Helps Avoid Overspending:

Goal-based SIPs aid in creating a budget that aligns with your financial
aspirations. By allocating predetermined amounts to each goal,
you avoid overspending.

Ongoing Monitoring:
Regularly tracking your progress towards achieving your financial goals
ensures that you remain on the right path.

29
SIP since inception* of ₹10,000 invested systematically on the first business day of every month (total investment ₹35.10 lakh)
in HDFC Flexi Cap Fund would have grown to ~₹1,759.58 Lacs on March 31, 2024 (refer below table).

A: SIP Performance - HDFC Flexi Cap Fund - Regular plan - Growth Option

SIP Investments Since

Inception* 15 year SIP 10 year SIP 5 year SIP 3 year SIP 1 year SIP

Total Amount Invested (₹ in Lacs) 35.10 18.00 12.00 6.00 3.60 1.20

Market Value as on March 31, 2024 (₹ in Lacs) 1,759.58 70.08 30.76 11.57 5.33 1.45

Returns (%) 21.26 16.47 17.91 26.62 27.33 41.60

Benchmark Returns (%)# 15.36 14.89 16.16 21.60 20.46 36.11

Additional Benchmark Returns (%)## 14.09 13.79 14.84 18.52 16.79 27.35

CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). The above investment simulation
is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. SIP - Systematic Investment
Plan.Since Inception Date = Date of First allotment in the Scheme / Plan. Past performance may or may not be sustained in future and is not a guarantee
of any future returns.

B: HDFC Flexi Cap Fund - Performance - Regular plan - Growth Option

NAV as on March 31, 2024 ₹1605.692 (per unit)

Additional Value of ₹10,000 invested

Scheme Benchmark
Period Benchmark Additional
Returns (%) Returns (%) # Scheme Benchmark
Returns (%) ## Benchmark
(₹) (₹)#
(₹)##
Last 1 year 43.17 40.49 30.08 14,317 14,049 13,008
Last 3 years 26.25 19.32 16.35 20,135 16,970 15,736
Last 5 years 18.66 17.19 15.27 23,571 22,112 20,356
Since Inception* 18.95 12.55 11.82 16,05,692 3,17,633 2,62,802
*Inception Date: January 01, 1995. The Scheme is managed by Mrs. Roshi Jain since July 29, 2022. # NIFTY 500 (Total Returns Index) ## NIFTY 50 (Total
Returns Index). As NIFTY 50 TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR
of NIFTY 50 PRI values from January 1, 1995 to June 29, 1999 and TRI values since June 30, 1999. Since Inception Date = Date of First allotment in the Scheme
/ Plan. Returns as on 31st March 2024.
As NIFTY 50 TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI
values from January 1, 1995 to June 29, 1999 and TRI values since June 30, 1999.

C: Other schemes managed by Ms. Roshi Jain, fund manager of HDFC Flexi Cap Fund who
manages total 3 schemes

Managing Returns (%) as on March 31, 2024

Scheme scheme since
Last 1 year (%) Last 3 years (%) Last 5 years (%)

HDFC ELSS Tax saver January 13, 2022 45.63 25.71 17.00

Benchmark - NIFTY 500 (Total Returns Index) 40.49 19.32 17.19

HDFC Focused 30 Fund January 13, 2022 40.85 27.78 18.58

Benchmark - NIFTY 500 (Total Returns Index) 40.49 19.32 17.19

Common notes for tables B & C: Past performance may or may not be sustained in future and is not a guarantee of any future returns. Returns greater
than 1 year period are compounded annualised (CAGR). Load is not taken into consideration for computation of above performance(s). Different plans viz.
Regular Plan and Direct Plan have different expense structures. The expenses of the Direct Plan under the scheme will be lower to the extent of the
distribution expenses/commission charged in the Regular Plan. The above returns are of Regular Plan-Growth Option. Returns as on 31st March 2024.
Benchmark and Additional Benchmark performance is computed as on 28th March, 2024, since values for 31st March 2024 are not available.

30
PRODUCT LABELING:
THIS PRODUCT IS SUITABLE FOR
NAME OF SCHEME RISKOMETER
INVESTORS WHO ARE SEEKING*

HDFC Flexi Cap Fund • To generate long-term capital

(Erstwhile HDFC Equity Fund) appreciation / income
An open ended dynamic equity • Investment predominantly in equity &
scheme investing across large cap, equity related instruments
mid cap, small cap stocks

HDFC Focused 30 Fund • To generate long-term capital

appreciation / income
An open ended equity scheme investing
in maximum 30 stocks in large-cap, • Investments in equity & equity related
mid-cap and small-cap category instruments of up to 30 companies

Moder
oderate Highately
• To generate long-term capital to te M Hi
HDFC ELSS Tax saver w era
appreciation / income

Mo Lo

gh
d
An open ended equity linked savings
scheme with a statutory lock in of • Investment predominantly of equity &

Very
Low

High
3 years and tax benefit equity related instruments

RISKOMETER
Investors understand that their principal will be at
HDFC Top 100 Fund • To generate long-term capital very high risk
appreciation / income
An open ended equity scheme • Investment predominantly in Large-Cap
predominantly investing in large
cap stocks
companies

HDFC Mid Cap • To generate long-term capital

Opportunities Fund appreciation / income
An open ended equity scheme • Investment predominantly in Mid-Cap
predominantly investing in mid companies
cap stocks

HDFC Small Cap Fund • To generate long-term capital

An open ended equity scheme appreciation / income
predominantly investing in • Investment predominantly in Small-Cap
small cap stocks companies

• Capital appreciation over long term

HDFC Gold Fund^
An open ended Fund of Fund scheme • Investment in Units of HDFC Gold
investing in HDFC Gold Exchange Exchange Traded Fund (HGETF). HGETF
Traded Fund invests in gold bullion of 0.995 fineness

* Investors should consult their financial advisers, if in doubt about whether the product is suitable for them.
For latest Riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com

31
 THIS PRODUCT IS SUITABLE FOR
NAME OF SCHEME INVESTORS WHO ARE SEEKING* RISKOMETER

HDFC Medium Term

Debt Fund • Income over medium term
• To generate income / capital appreciation
[An open ended medium term debt
through investments in Debt and Money
scheme investing in instruments such
that the $Macaulay Duration of the Market Instruments
portfolio is between 3 years and 4 years.
A Relatively High Interest Rate Risk and
Relatively High Credit Risk]

Potential Risk Class (Maximum risk the Scheme can take)

Credit Risk Relatively Moderate Relatively High
Interest Rate Risk Low (Class A) (Class B) (Class C)
Relatively Low (Class I)
Moderate (Class II)
Relatively High (Class III) C-III
C-III - A Scheme with Relatively High Interest Rate Risk and Relatively High Credit Risk.

HDFC Corporate Bond Fund

• Income over short to medium term
(An open ended debt scheme
• To generate income/capital appreciation
predominantly investing in AA+ and
above rated corporate bonds. through investments predominantly in
A Relatively High Interest Rate Risk and AA+ and above rated corporate bonds
Moderate Credit Risk)

Potential Risk Class (Maximum risk the Scheme can take)

Credit Risk Relatively Moderate Relatively High

Interest Rate Risk Low (Class A) (Class B) (Class C)
Relatively Low (Class I)
Moderate (Class II)
Relatively High (Class III) B-III
B-III - A Scheme with Relatively High Interest Rate Risk and Moderate Credit Risk.

HDFC Low Duration Fund • Income over short term

[An open ended low duration debt • To generate income / capital appreciation
scheme investing in instruments such through investment in debt securities and
that the $Macaulay Duration of the
money market instruments Modera
oderate High tely
portfolio is between 6 months and 12
months. A Relatively High Interest Rate to te M Hi
Risk and Moderate Credit Risk] w era
Mo Lo

gh
d

Very
High
Low

Potential Risk Class (Maximum risk the Scheme can take)

Credit Risk Relatively Moderate Relatively High RISKOMETER

Interest Rate Risk Low (Class A) (Class B) (Class C)
Investors understand that their principal will be at
Relatively Low (Class I) low to moderate risk
Moderate (Class II)
Relatively High (Class III) B-III
B-III - A Scheme with Relatively High Interest Rate Risk and Moderate Credit Risk.

*Investors should consult their financial advisers, if in doubt about whether the product is suitable for them.
For latest Riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com

32
BENCHMARK AND SCHEME RISKOMETERS:
NAME AND RISKOMETER
NAME OF SCHEME(S) RISKOMETER OF THE SCHEME(S)
OF BENCHMARK

NIFTY 500 (Total Returns Index)

• HDFC Flexi Cap Fund

• HDFC Focused 30 Fund

• HDFC ELSS Tax saver

Benchmark and Scheme Riskometer as on March 31, 2024

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial
planning. Due to the personal nature of investments, investors are advised to consult their financial advisors before investing.

$Macaulay Duration (Duration) measures the price volatility of fixed income securities. It is often used in the comparison of
interest rate risk between securities with different coupons and different maturities. It is defined as the weighted average time
to cash flows of a bond where the weights are nothing but the present value of the cash flows themselves. It is expressed in
years. The duration of a fixed income security is always shorter than its term to maturity, except in the case of zero coupon
securities where they are the same.

^Note: Investors in the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of other schemes
in which Fund of Funds scheme makes investment (subject to regulatory limits)

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS,

READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

33
THANK YOU

34