HDFC Retirement Savings Fund – Equity Plan has given an impressive return of 25.45% in the last three years under the direct plan. It is currently the top performer in its category in terms of returns in the last three and five years, according to data on the AMFI website (as of 07-09-2022).
The Mutual Fund SIP calculator shows that if an investor had started a monthly SIP of Rs 10,000 in the direct plan of HDFC Retirement Savings Fund – Equity Plan, then his wealth would have grown to Rs 5.4 lakh in 3 years. A SIP of Rs 15,000 in this scheme would have increased this investor’s wealth to Rs 8.15 lakh in three years while a Rs 5000 monthly SIP would have grown to Rs 2.71 lakh in three years.
It is important to note here that the scheme has a lock-in period of five years or the retirement age, whichever is earlier. The five-year return of this fund has been around 15.5% under the direct plan and 14.03% under the regular plan. At the 15.5% return recorded under the direct plan, the monthly SIP of Rs 10,000 would have grown to Rs 9 lakh in 5 years. A SIP of Rs 15,000/month in the direct plan would have returned Rs 13.6 lakh in 5 years.
The three-year returns of this scheme under the regular scheme have been around 23.90%, according to the data.
While the returns on this scheme have been impressive for three years, the last one-year return has been modest at 9.27% under the direct plan and 7.89% under the regular plan.
5 things to know about HDFC Retirement Savings Fund Equity Plan
1. If you plan to explore mutual funds for retirement planning, you should always make your investment plan in consultation with a professional financial advisor. Investing on the basis of past returns may put all your hard-earned money at risk. Since mutual fund returns are subject to market risks, there is no guarantee that a fund will repeat its past performance or meet the scheme’s objectives.
2. HDFC Retirement Savings Fund – Equity Plan falls in the “Very High” risk category. Therefore, investors are required to exercise more caution and weigh other options that may be less risky.
3. HDFC Retirement Savings Fund Equity Plan is an open-ended retirement solution-oriented scheme with a lock-in of 5 years or till retirement age (whichever is earlier).
4. As per the fund’s website, HDFC Retirement Savings Fund Equity Plan is a notified Tax Savings Cum Pension Scheme. The fund invests a minimum of 80% of the portfolio in Equity and Equity related instruments.
5. The NAV of HDFC Retirement Savings Fund Equity Plan – Direct _Plan Growth option on 7th September 2022 was Rs 33.440. The NAV of HDFC Retirement Savings Fund Equity Plan 0 Regular Plan – Growth Option on 7th September 2022 was Rs 30.4910
HDFC Retirement Savings Fund Equity Plan was launched on 25 February 2016. As on 31 August 2022, the AUM of this fund was Rs 2414.12 crore. The fund is managed by Srinivasan Ramamurthy and Shobhit Mehrotra.