There are many schemes of mutual funds which have made investors rich. But, there is a fund of HDFC AMC, which turned an investment of just Rs 10,000 every month into Rs 21 crore in 30 years. The name of this fund is HDFC Flexi Cap Fund. This fund was started on January 1, 1995. If you had started investing Rs 10,000 in this fund through SIP on January 1, 1995, today your money would have increased to Rs 20.65 crore.
The scheme gave more returns than its benchmark
Investing Rs 10,000 every month since January 1, 1995 means the investor has invested Rs 35.90 lakh so far. HDFC Flexi Cap Fund Invests its funds in largecap, midcap and smallcap stocks. This scheme has given a CAGR return of 19.13 percent. If a person had invested only Rs 1,00,000 at the time of launch of this scheme, today this money would have increased to Rs 1.88 lakh crore. This fund has achieved its benchmark Nifty TRI Has given better returns than.
Scheme’s investment on diversification
This scheme is one of the oldest schemes in the flexi cap category. Its focus has been on bottom-up stock selection. It tries to keep its portfolio diversified by investing in shares of companies of different market capitalization. The advantage of diversification is that if the performance of any one sector is poor, the portfolio is not affected much. The reason for this is that at one time the performance of one sector is bad and at another time it is good.
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Understand the risk before investing
This fund of HDFC AMC may have made investors rich, but experts say that investors need to keep in mind that the past performance of a fund is not a guarantee of better performance in the future. There is a lot of risk associated with investing in mutual funds, especially equity funds. If you want to invest in an equity fund, then you must take the advice of your financial advisors in this regard.