How a Systematic Investment Plan (SIP) of Rs. 10,000 per Month Grew to Rs. 8.30 Crore in 27 Years

An investment of just Rs. 10,000 per month in the HDFC Top 100 Fund, one of the longest-running open-ended mutual fund schemes in India, has grown to a staggering Rs. 8.30 crore over the past 27 years. This remarkable feat highlights the transformative power of systematic investing and the HDFC Asset Management Company's (HDFC AMC) disciplined approach to portfolio management.

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The HDFC Top 100 Fund, which was launched in October 1996, has delivered a compound annual growth rate (CAGR) of around 19% since its inception. This consistent performance has enabled a systematic investment plan (SIP) of Rs. 10,000 per month (totaling Rs. 33.20 lakh) to grow into a substantial corpus of Rs. 8.30 crore as of May 31, 2024.

According to HDFC MF, the fund's portfolio construction follows a bottom-up approach to stock picking, blended with a top-down analysis of sector and macroeconomic trends. The fund adheres to a diversified style, with a blend of growth at a reasonable price (GARP) and value investing strategies. More than 80% of the portfolio is invested in well-established large-cap companies, providing stability and better risk-adjusted returns.

"Sound investment + Time + Patience has been the time-tested principle for wealth creation in equities," said Navneet Munot, MD and CEO of HDFC AMC. "HDFC Top 100 Fund, which has stood the test of time, bears testimony to this. The wealth creation journey of HDFC Top 100 Fund over 27 years is also a shining example of our robust research and investment processes, which have helped the fund withstand multiple market cycles over the years."

Rahul Baijal, Senior Fund Manager-Equities at HDFC AMC, further emphasized the fund's disciplined approach, stating, "HDFC Top 100 Fund's performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses. Large-cap stocks offer stability and better risk-adjusted returns, making them an attractive option for investors looking for investment opportunities over the long term."

The HDFC Top 100 Fund's remarkable performance is a testament to the power of long-term investing and the HDFC AMC's commitment to delivering consistent returns for its investors. By focusing on well-established large-cap companies, maintaining a diversified portfolio, and adhering to a disciplined investment process, the fund has been able to navigate various market cycles and provide investors with the opportunity to build substantial wealth over time.