hdfc_sip
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sip detailsTRANSCRIPT
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SYSTEMATIC INVESTMENT PLAN
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Benefit 1
Being disciplined - It’s the key to investing success. With the
HDFC MF Systematic Investment Plan you commit an amount of
your choice (minimum of Rs. 1000 and in multiples of Rs. 100
thereof*) to be invested every month in one of our schemes.
Think of each SIP payment as laying a brick. One by one, you’ll
see them transform into a building. You’ll see your investments
accrue month after month. It’s as simple as giving at least 6 post-
dated monthly cheques to us for a fixed amount in a scheme of
your choice. It’s the perfect solution for irregular investors.
*Minimum amounts may differ for each Scheme. Please refer to SIP Enrolment Form
for details.
Benefit 2
Imagine you want to buy a car a year from now, but you don’t
know where the down-payment will come from. HDFC MF SIP is a
perfect tool for people who have a specific, future financial
requirement. By investing an amount of your choice every month,
you can plan for and meet financial goals, like funds for a child’s
education, a marriage in the family or a comfortable post-
retirement life. The table below illustrates how a little every month
can go a long way.
Monthly Savings - What your savings may generate
Savings Total amount Rate of return
per month invested 6.0% 8.0% 10.0%
(for 15 years) (Rs. in Lacs) (rupees in lacs, 15 years later)*
5000 9.0 14.6 17.4 20.9
4000 7.2 11.7 13.9 16.7
3000 5.4 8.8 10.4 12.5
2000 3.6 5.8 7.0 8.3
1000 1.8 2.9 3.5 4.2
*Monthly instalments, compounded monthly, for a 15-year period.
Disclaimer: The illustration above is merely indicative in nature and should not be
construed as investment advice. It does not in any manner imply or suggest
performance of any HDFC Mutual Fund Scheme(s). Please read Risk Factors.
BECOME A DISCIPLINED INVESTOR
REACH YOUR FINANCIAL GOALS
HDFC MF Systematic Investment Plan (SIP) is similar to a Recurring Deposit. Every month an amount you choose is invested in a
mutual fund scheme of your choice. You’ll be amazed to learn about the many benefits of investing through HDFC MF SIP.
H o w m a n y b e n e f i t s c a n a
S y s t e m a t i c I n v e s t m e n t P l a n h a v e ?
(Count them and see)
Benefit 3
Most investors want to buy stocks when the prices are low and
sell them when prices are high. But timing the market is time-
consuming and risky. A more successful investment strategy is to
adopt the method called Rupee Cost Averaging. To illustrate this
we’ll compare investing the identical amounts through a SIP and
in one lump sum.
Imagine Suresh invests Rs. 1000 every month in an equity mutual
fund scheme starting in January. His friend, Rajesh, invests
Rs. 12000 in one lump sum in the same scheme. The following
table illustrate how their respective investments would have
performed from Jan to Dec:
Rajesh’s Investment
Month NAV* Amount Units
(Rs.) (Rs.) (Rs.)
Jan-04 9.345 12000 1284.1091
Feb-04 9.399
Mar-04 8.123
Apr-04 8.750
May-04 8.012
Jun-04 8.925
Jul-04 9.102
Aug-04 8.310
Sep-04 7.568
Oct-04 6.462
Nov-04 6.931
Dec-04 7.600
Total 12000 1284.1091
*NAV as on the 10th every month. These are assumed NAVs in a volatile market.
Disclaimer: The illustration above is merely indicative in nature and should not be
construed as investment advice. It does not in any manner imply or suggest
performance of any HDFC Mutual Fund Scheme(s). Rupee Cost Averaging neither
ensures you profits nor protects you from making a loss in declining markets. Please
read Risk Factors.
TAKE ADVANTAGE OF RUPEE COST AVERAGING
Suresh’s Investment
Amount Units
1000 107.0091
1000 106.3943
1000 123.1072
1000 114.2857
1000 124.8128
1000 112.0448
1000 109.8660
1000 120.3369
1000 132.1353
1000 154.7509
1000 144.2793
1000 131.5789
12000 1480.6012
sms HDFCMF to 6767
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NAs seen in the table, by investing through SIP, you end up buying
more units when the price is low and fewer units when the price is
high. However, over a period of time these market fluctuations are
generally averaged. And the average cost of your investment is
often reduced.
At the end of the 12 months, Suresh has more units than Rajesh,
even though they invested the same amount. That’s because the
average cost of Suresh’s units is much lower than that of Rajesh.
Rajesh made only one investment and that too when the per-unit
price was high.
Suresh’s average unit price = 12000/1480.6012 = Rs. 8.105
Rajesh’s average unit price = Rs. 9.345
Benefit 4
It is far better to invest a small amount of money regularly, rather
than save up to make one large investment. This is because while
you are saving the lump sum, your savings may not earn much
interest.
With HDFC MF SIP, each amount you invest grows through
compounding benefits as well. That is, the interest earned on
your investment also earns interest. The following example
illustrates this.
Imagine Neha is 20 years old when she starts working. Every
month she saves and invests Rs. 5,000 till she is 25 years old.
The total investment made by her over 5 years is Rs. 3 lakhs.
Arjun also starts working when he is 20 years old. But he doesn’t
invest monthly. He gets a large bonus of Rs. 3 lakhs at 25 and
decides to invest the entire amount.
Both of them decide not to withdraw these investments till they
turn 50. At 50, Neha’s Investments have grown to Rs. 46,68,273*
whereas Arjun’s investments have grown to Rs. 36,17,084*.
Neha’s small contributions to a SIP and her decision to start
investing earlier than Arjun have made her wealthier by over
Rs. 10 lakhs.
*Figures based on 10% p.a. interest compounded monthly.
Disclaimer: The illustration above is merely indicative in nature and should not be
construed as investment advice. It does not in any manner imply or suggest
performance of any HDFC Mutual Fund Scheme(s). Please read Risk Factors.
Benefit 5
Investing with HDFC MF SIP is easy. Simply give us post-dated
cheques for an amount of your choice (minimum of
Rs. 1000 and in multiples of Rs. 100 thereof*) and we’ll invest the
money every month in a fund of your choice. The plans are
completely flexible. You can invest for a minimum of six months,
or for as long as you want. You can also decide to invest quarterly
and will need to invest for a minimum of two quarters.
All you have to do after that is sit back and watch your
investments accumulate. Please refer to the SIP Enrolment
Form for terms and conditions before enrolment.
*Minimum amounts may differ for each Scheme.
GROW YOUR INVESTMENT WITH COMPOUNDED
BENEFITS
DO ALL THIS EFFORTLESSLY
When the price is lowest,you buy the highest
number of units
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9.399
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ES 6.462
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
When the price is highest,you buy the least number of units
106.3943units
154.7509units
RU
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Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
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Actual PriceMovement
Rajesh’sAverage Cost Price
Suresh’sAverage
Cost Price
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THE PROOF OF THE PUDDING
To illustrate the advantages of SIP Investments, this is how your investments would have grown if you had invested say Rs. 1,000 systematically in the following schemes, on the first Business Day of Every Month over a period of time.
HDFC Prudence Fund
SIP Investments Since 10 Year 5 Year 3 Year 1 Year Inception SIP SIP SIP SIP
Total Amount 147.00 120.00 60.00 36.00 12.00Invested (Rs.’000)
Market Value as on 980.52 704.02 181.27 69.10 15.12Apr 28, 06 (Rs.’000)
Returns 28.31 32.82 46.12 47.60 52.65(Annualised)*%
Benchmark Returns N.A. N.A. N.A. 29.48 45.71(Annualised)*%
Past Performance may or may not be sustained in the future.#CRISIL Balanced Fund Index
HDFC TaxSaver
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total AmountInvested (Rs.’000) 118.00 60.00 36.00 12.00
Market Value as onApr 28, 06 (Rs.‘000) 1,592.87 302.29 108.29 17.82
Returns(Annualised)*% 50.07 69.80 87.02 103.03
Benchmark Returns#(Annualised) % 23.68 44.16 51.97 76.61
Past Performance may or may not be sustained in the future.#S&P CNX 500
HDFC Long Term Advantage Fund
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total AmountInvested (Rs.’000) 64.00 60.00 36.00 12.00
Market Value as onApr 28, 06 (Rs.‘000) 316.09 280.41 90.37 16.27
Returns(Annualised)*% 63.45 66.20 70.42 73.55
Benchmark Returns#(Annualised) % 38.41 41.15 53.51 89.75
Past Performance may or may not be sustained in the future.#SENSEX
HDFC Children's Gift Fund – Savings Plan
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total AmountInvested (Rs.’000) 62.00 60.00 36.00 12.00
Market Value as onApr 28, 06 (Rs.‘000) 87.44 83.57 43.25 12.60
Returns(Annualised)*% 13.31 13.26 12.37 9.60
Benchmark Returns#(Annualised) % N.A. N.A. 29.48 45.71
Past Performance may or may not be sustained in the future.#CRISIL Balanced Fund Index
HDFC Children's Gift Fund – Investment Plan
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total AmountInvested (Rs.’000) 62.00 60.00 36.00 12.00
Market Value as onApr 28, 06 (Rs.‘000) 133.14 126.77 58.38 14.27
Returns(Annualised)*% 30.12 30.56 34.28 37.72
Benchmark Returns#(Annualised) % N.A. N.A. 29.48 45.71
Past Performance may or may not be sustained in the future.#CRISIL Balanced Fund Index
HDFC Top 200 Fund
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total Amount 115.00 60.00 36.00 12.00Invested (Rs.‘000)
Market Value as on 691.26 242.56 85.09 17.30 Apr 28, 06 (Rs.‘000)
Returns 35.44 59.38 65.11 93.09(Annualised)*%
Benchmark Returns 23.65 42.58 50.69 80.04(Annualised)*%
Past Performance may or may not be sustained in the future.#BSE 200
HDFC Equity Fund
SIP Investments Since 10 Year 5 Year 3 Year 1 Year Inception SIP SIP SIP SIP
Total Amount 136.00 120.00 60.00 36.00 12.00Invested (Rs.’000)
Market Value as on 1,341.50 1,084.59 246.98 86.79 17.31
Returns 37.17% 41.40% 60.22% 66.84% 93.19%(Annualised)*%
Benchmark Returns 20.64% 23.28% 44.16% 51.97% 76.61%(Annualised)*%
Past Performance may or may not be sustained in the future.#S&P CNX 500
Apr 28, 06 (Rs.‘000)
HDFC Growth Fund
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total AmountInvested (Rs.’000) 68.00 60.00 36.00 12.00
Market Value as onApr 28, 06 (Rs.‘000) 251.44 213.76 81.25 17.07
Returns(Annualised)*% 47.50 53.55 61.12 88.57
Benchmark Returns#(Annualised) % 35.95 40.53 53.51 89.75
Past Performance may or may not be sustained in the future.#SENSEX
HDFC Capital Builder Fund
SIP Investments Since 10 Year 5 Year 3 Year 1 Year Inception SIP SIP SIP SIP
Total Amount 147.00 120.00 60.00 36.00 12.00Invested (Rs.‘000)
Market Value as on 879.06 695.44 246.30 91.78 16.94Apr 28, 06 (Rs.‘000)
Returns 26.73 33.06 60.09 71.80% 86.21(Annualised)*%
Benchmark Returns 18.78 23.28 44.16 51.97 76.61(Annualised)*%
Past Performance may or may not be sustained in the future.#S&P CNX 500
HDFC Balanced Fund
SIP Investments Since 5 Year 3 Year 1 Year Inception SIP SIP SIP
Total AmountInvested (Rs.’000) 68.00 60.00 36.00 12.00
Market Value as onApr 28, 06 (Rs.‘000) 156.03 132.06 60.21 15.00
Returns(Annualised)*% 29.58 32.30 36.66 50.46
Benchmark Returns#(Annualised) % N.A. N.A. 29.48 45.71
Past Performance may or may not be sustained in the future.#CRISIL Balanced Fund Index
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FOR MORE INFORMATION OR COPY OF THE OFFER DOCUMENT AND KEY INFORMATION MEMORANDUM ALONG WITH APPLICATION FORM PLEASE CONTACT ANY OF OUR INVESTOR SERVICE CENTRES (ISCs) AT: WEST: MUMBAI – 022-6631 6300, NAGPUR – 0712-2554 395, 2522 691. NASHIK – 0253-661 9356, 660 6000, PUNE – 020-2552 1680/1681, AHMEDABAD – 079-2640 3582/83/84, RAJKOT – 0281-5524881/82, VADODARA – 0265 5521110/20/30/40, SURAT – 0261-246 0082/83, GOA – 0832-242 5609/10, INDORE – 0731-4022 2241/4022 2242, BHOPAL – 0755-528 5385, 527 3330, NORTH: DELHI – 011-5152 2189, CHANDIGARH – 0172-262 3397/262 4497, LUCKNOW – 0522-220 7591/220 0163, 220 1103, LIDHIANA – 0161-277 4321/501 4321, KANPUR – 0512-2331 484 87, JAIPUR – 0141-511 1125, 237 4968, JODHPUR - 0291-510 5919, 510 1927/37, EAST: PATNA – 0612-232 2047, KOLKATA – 033-2242 7849/53/56/59, BHUBANESHWAR – 0674-253 6566, 2531482/83, JAMSHEDPUR – 0657-309 1826, SOUTH: CHENNAI – 044-2841 5851/52, 2851 0599, BANGALORE – 080-5112 5000, 2248 4826, HYDERABAD – 040-23417401/05, KOCHI – 0484-235 7707/08, 394 3058/59, 235 8462, VISAKHAPATNAM – 0891-276 9636, COIMBATORE – 0422-222 2189, 222 2193, MANGALORE – 0824-5269000.
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REGISTERED OFFICE: Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai-400 020.Tel.: 022-6631 6300 l Fax: 022-2282 1144.
Distributed by:
HDFC Capital Builder Fund, HDFC Equity Fund and HDFC TaxSaver which are benchmarked to S&P CNX 500 Index and HDFC Index Fund-Nifty Plan which is benchmarked to S&P CNX Nifty Index are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such product benchmarked to such index.Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the scheme's objectives will be achieved and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market. Past performance of the Sponsors / AMC / Mutual Fund / Scheme(s) and their affiliates do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. Investors in the Scheme are not being offered any guaranteed / assured returns. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk and Credit Risk. HDFC Growth Fund (an open-ended growth scheme; the primary objective of the scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments), HDFC Equity Fund (an open ended growth scheme; the primary objective of the scheme is to achieve capital appreciation), HDFC Capital Builder Fund (an open ended growth scheme; the primary objective of the scheme is to achieve capital appreciation in the long term), HDFC Index Fund (an open ended index linked scheme; this scheme has 3 plans viz - Nifty Plan the primary objective of this Plan is to generate returns that are commensurate with the performance of the Nifty, subject to tracking error, Sensex Plan the primary objective of this Plan is to generate returns that are commensurate with the performance of the SENSEX, subject to tracking error, and Sensex Plus Plan the primary objective of this Plan is to invest 80 to 90% of the net assets of the Plan in companies whose securities are included in SENSEX and between 10% & 20% of the net assets in companies whose securities are not included in the SENSEX), HDFC Children's Gift Fund (an open ended balanced scheme; the primary objective of both the Plans under the Scheme is to generate long term capital appreciation), HDFC Balanced Fund (an open ended balanced scheme; the primary objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of equity and equity related and debt and money market instruments), HDFC Prudence Fund (an open ended balanced fund; the primary objective of the scheme is to provide periodic returns and capital appreciation over a long period of time from a judicious mix of equity and debt instruments with an aim to prevent / minimise any capital erosion), HDFC Long Term Advantage Fund (an open ended equity linked savings scheme with a lock in period of 3 years; the primary objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments), HDFC TaxSaver (an open ended equity linked savings scheme with a lock in period of 3 years; the primary objective of the scheme is to achieve long term growth of capital), HDFC Top 200 Fund (an open ended growth scheme; the primary objective of the scheme is to generate long term capital appreciation from a portfolio of equity and equity linked instruments primarily drawn from the companies in BSE 200 index) are only the names of the Scheme(s) and do not in any manner indicate either the quality of the Scheme(s), its future prospects and returns. In view of the individual nature of tax consequences, each investor is advised to consult his/her professional tax advisor. Please read the offer document(s) of the respective Scheme(s) before investing. Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited (liability restricted to their contribution of Rs. 1 lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and with HDFC Asset Management Company Limited as the Investment Manager.
*Load is not taken into consideration and the Returns are of Growth Plan. Investors are advised to refer to the Relative Performance table furnished in our monthly newsletter IntouchMutually also available on our website - www.hdfcfund.com. Past Performance may or may not be sustained in the future. Please refer SIP enrolment form or contact nearest ISC for SIP load structure.Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital.The AMC/Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against a loss in a declining market.
HDFC Index Fund - Sensex Plus Plan
SIP Investments Since 3 Year 1 Year Inception SIP SIP
Total AmountInvested (Rs.’000)
Market Value as onApr 28, 06 (Rs.‘000) 115.07
Returns(Annualised)*% 51.82
Benchmark Returns#(Annualised) % 54.50
Past Performance may or may not be sustained in the future.#SENSEX (Total Returns Index)
46.00 36.00 12.00
75.35 16.95
54.73 86.28
58.12 94.53
HDFC Index Fund – Sensex Plan
SIP Investments Since 3 Year 1 Year Inception SIP SIP
Total AmountInvested (Rs.’000)
Market Value as onApr 28, 06 (Rs.‘000) 106.33
Returns(Annualised)*% 46.94
Benchmark Returns#(Annualised) % 54.50
Past Performance may or may not be sustained in the future.#SENSEX (Total Returns Index)
46.00 36.00 12.00
71.59 16.92
50.48 85.75
58.12 94.53
HDFC Index Fund - Nifty Plan
SIP Investments Since 3 Year 1 Year Inception SIP SIP
Total AmountInvested (Rs.’000)
Market Value as onApr 28, 06 (Rs.‘000) 102.62
Returns(Annualised)*% 44.77
Benchmark Returns#(Annualised) % 48.65
Past Performance may or may not be sustained in the future.#S&P CNX Nifty (Total Returns Index)
46.00 36.00 12.00
68.90 16.85
47.36 83.12
55.60 85.97