Investors are increasingly looking for structured strategies that offer balanced growth and long-term gains. In this example, we explore a five-year investment in HDFC Balanced Advantage Fund with an STP (Systematic Transfer Plan) to HDFC Mid-Cap Opportunities Fund, aiming to maximize returns through balanced fund growth and targeted mid-cap exposure. All calculations are based on the last 3 years’ CAGR as of October 27, 2024.

Fund types and growth rates:

1. HDFC Balanced Advantage Fund – Direct (Hybrid Fund): A hybrid fund combines equity (stocks) and debt (fixed income) investments to balance growth potential and risk. By diversifying into both types of assets, hybrid funds offer moderate risk, making them ideal for investors looking to grow their wealth with a controlled level of exposure to market fluctuations. The HDFC Balanced Advantage Fund, in particular, provides a 3-year CAGR of 23.42%.
2. HDFC Mid-Cap Opportunities Fund – Direct (Equity Fund): An equity fund focuses primarily on stocks to provide potentially high returns over the long term. In this case, the HDFC Mid-Cap Opportunities Fund emphasizes mid-cap stocks—companies that are not yet large-scale but show strong growth potential. With a 3-year CAGR of 29.68%, this fund aims to capture the growth of emerging mid-sized companies in the market, albeit with higher volatility than a hybrid fund.

Initial investment and STP setup

1. Initial Investment: ₹5 lakh is invested in the HDFC Balanced Advantage Fund, allowing the balance to grow while monthly transfers are made.
2. Monthly STP: ₹5,000 is systematically transferred to the HDFC Mid-Cap Opportunities Fund, allowing growth from both funds through compounding while maintaining a monthly drawdown from the Balanced Advantage Fund.

Investment breakdown and calculated returns after 5 years

1. Total investment:

• One-time initial investment: ₹5 lakh in the HDFC Balanced Advantage Fund.
• Total STP amount transferred: Over five years, ₹5,000 is transferred monthly to the Mid-Cap Fund, amounting to ₹3 lakh.

2. Returns from each fund:

• HDFC Balanced Advantage Fund – Direct:
  • Final balance after 5 years, post-STP deductions: ₹9.05 lakh.
  • Total earnings from this fund after factoring in STP deductions: ₹7.05 lakh.
• HDFC Mid-Cap Opportunities Fund – Direct (via STP):
  • Future value after 5 years: ₹6.09 lakh.
  • Total earnings in the Mid-Cap Fund from STP contributions: ₹3.09 lakh.

3. Final corpus:

• The total corpus after 5 years, combining both funds’ returns, amounts to approximately ₹15.14 lakh.

Detailed analysis of growth

The initial investment in the HDFC Balanced Advantage Fund not only grew independently at a rate of 23.42% CAGR but also facilitated the monthly STP to the HDFC Mid-Cap Opportunities Fund. The Mid-Cap Fund’s higher 29.68% CAGR maximized returns on the transferred amount, allowing both funds to compound and contribute to the overall corpus.

Conclusion

By leveraging the HDFC Balanced Advantage Fund as a primary investment vehicle with STP transfers to the HDFC Mid-Cap Opportunities Fund, investors can create a diversified growth portfolio that balances risk with potential high returns. The strategic combination of consistent mid-cap exposure and balanced fund stability allowed the investment to grow to approximately ₹15.14 lakh over five years, with clear gains from both funds.

Disclaimer: This example is based on the 3-year CAGR of these funds as of October 27, 2024. All calculations are hypothetical and intended for illustrative purposes only. Mutual Fund investments are subject to market risks, and past performance is not indicative of future results. Please consult with a financial advisor to understand potential risks and returns before investing.

Nippon India Focused Equity Fund Direct-Growth is a Focused mutual fund offered by Nippon India Mutual Fund. This fund was established on January 1, 2013, making it 11 years old. Nippon India Focused Equity Fund Direct-Growth has assets under management (AUM) of ₹8,585 Crores, making it a medium-sized fund in its category.

The majority of the fund’s assets are invested in the capital goods, automotive, financial, services and technology sectors. Compared to other funds in the category, it has taken on less exposure in the Financial and Services sectors.

Nippon India Focused Equity Fund Performance

The last year’s direct growth returns for Nippon India Focused Equity Fund were 36.05%. It has generated 19.07% average yearly returns since its debut. Every four years, the fund doubles the amount invested in it.

The Nippon India Focused Equity Fund Direct-Growth scheme can often produce returns that are similar to other offerings in its category. Its capacity to manage losses in a declining market is below average.

Nippon India Focused Equity Fund Returns

Nippon India Focused Equity Fund Top 5 Holdings

Nippon India Focused Equity Fund Suitability

If you invest for five years or longer, you can expect profits that outperform both inflation and fixed income returns. However, you can expect your investment value to fluctuate along the way.

Nippon India Mutual Fund offers a Thematic-Consumption mutual fund scheme called Nippon India Consumption Fund Direct-Growth. This fund launched on January 1, 2013, making it 11 years old. Nippon India Consumption Fund Direct-Growth has assets under management (AUM) of ₹1,063 Crores, making it a medium-sized fund in its category.

Most of the fund’s money is invested in the Consumer Staples, Services, Automobile, Communication and Materials industries. It has less exposure to the Consumer Staples and Services sectors than other funds in the category.

Nippon India Consumption Fund Performance

The last year’s Nippon India Consumption Fund Direct-Growth returns are 42.96%. It has generated 16.21% average yearly returns since its debut. Every three years, the fund doubles the amount invested in it.

The Nippon India Consumption Fund Direct-Growth plan has a steady track record of generating returns that are comparable to other funds in its class. It performs better than average at minimizing losses in a declining market.

Nippon India Consumption Fund Returns

Nippon India Consumption Fund Top 5 Holdings

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Nippon India Mutual Fund offers a Small Cap mutual fund scheme called Nippon India Small Cap Fund Direct-Growth. This fund was established on January 1, 2013, making it 11 years old. Nippon India Small Cap Fund Direct-Growth has assets under management (AUM) of ₹56,469 Crores, making it a medium-sized fund in its category.

The majority of the fund’s assets are allocated to the consumer staples, healthcare, financial services and capital goods industries. Compared to other funds in the category, it has less exposure to the capital goods and financial sectors.

Nippon India Small Cap Fund Performance

The growth returns over the last year for Nippon India Small Cap Fund Direct are 56.03%. It has produced returns an average of 28.28% annually since its start. Every two years, the fund doubles the amount invested in it.

The Nippon India Small Cap Fund Direct-Growth scheme outperforms other funds in its category in terms of consistent return delivery. It has a strong capacity to limit losses in a declining market.

Nippon India Small Cap Fund Returns

Nippon India Small Cap Fund Top 5 Holdings

Nippon India Small Cap Fund Suitability

If you invest for 7 ears or longer, you can expect profits that outperform both inflation and fixed income returns. This fund makes investments in small companies. These funds often see greater stock price declines than those that invest in larger corporations. There will thus be more severe ups and downs along the journey, even though you may anticipate bigger returns in the long run.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Nippon India Value Fund Direct Growth is an equity fund. This fund was established on January 1, 2013. The fund is managed by Dhrumil Shah, Kinjal Desai and Meenakshi Dawar. The fund has the potential to outperform inflation in the long-run.

This scheme’s main investment goal is to actively engage in equities and equity-related assets, mainly value stocks, to seek capital appreciation and/or create consistent returns.

Nippon India Value Fund Returns

Since its launch, Nippon India Value Fund Direct Growth has produced a CAGR return of 18.52%. The fund has produced a CAGR return of 54.64%, 26.71% and 27.63% during the previous one, three, and five years, respectively.

Nippon India Value Fund Returns Top 5 Holdings

Nippon India Value Fund Suitability

If you invest for 5 years or longer, you can expect profits that outperform both inflation and fixed income returns. However, you can expect your investment value to fluctuate along the way. This fund invests in a value/contrarian manner, looking for stocks that are much less than the fund management team feels they are worth.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

Nippon India Growth Fund Direct- Growth is a Mid Cap mutual fund offered by Nippon India Mutual Fund. This fund has been in operation for 11 years, having been founded on January 1, 2013. Nippon India Growth Fund Direct- Growth has ₹30,839 Crores in assets under management (AUM), making it a medium-sized fund within its category.

The majority of the fund’s capital is allocated to the financial, services, healthcare, automotive and capital goods industries. Compared to other funds in the category, it has taken less exposure to the Financial and Services sectors.

Nippon India Growth Fund Performance

The growth returns over the last year for the Nippon India Growth Fund Direct are 59.28%. It has produced returns of 20.44% on average year since its start. Every two years, the fund doubles the amount invested in it.

The Nippon India Growth Fund Direct-Growth scheme’s track record of regular return delivery is similar to other funds in its class. It performs better than average at controlling losses in a declining market.

Nippon India Growth Fund Returns

Nippon India Growth Fund Top 5 Holdings

Nippon India Growth Fund Suitability

If you invest for 7 years or longer, you can expect profits that outperform both inflation and fixed income returns.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

ICICI Prudential Smallcap Fund Direct Plan-Growth is a Small Cap mutual fund offered by ICICI Prudential Mutual Fund. This fund has been in operation for 11 years, having been founded on January 1, 2013. ICICI Prudential Smallcap Fund Direct Plan-Growth is a medium-sized fund within its category, with assets under management (AUM) of Rs 8,438 crores.

The majority of the fund’s money is invested in the capital goods, materials, services, chemicals and construction industries. Compared to other funds in the category, it takes less exposure to the materials and capital goods sectors.

ICICI Prudential Smallcap Fund Performance

ICICI Prudential Smallcap Fund Direct Plan-Growth returns for the previous year were 42.29%. Since its launch, it has generated an average yearly return of 19.77%. Every three years, the fund’s investment doubles.

The consistency with which the ICICI Prudential Smallcap Fund Direct Plan-Growth scheme delivers returns is similar to that of the majority of funds in its category. It has a strong capacity to control losses in a sinking market.

ICICI Prudential Smallcap Fund Returns

ICICI Prudential Smallcap Fund Top 5 Holdings

ICICI Prudential Smallcap Fund Suitability

You may anticipate returns from fixed income choices and profits that easily surpass the rate of inflation if you invest for seven years or more. This is a fund that invests in small firms. When stock prices fall, such funds suffer more than those that invest in larger firms. There will thus be more significant ups and downs along the way, even though you may anticipate greater profits in the long run.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

ICICI Prudential Dividend Yield Equity Fund Direct-Growth is a Dividend Yield mutual fund offered by ICICI Prudential Mutual Fund. This fund was launched on April 25, 2014, and has been in existence for ten years. ICICI Prudential Dividend Yield Equity Fund Direct-Growth is a medium-sized fund in its category, with assets under management (AUM) of Rs 4,257 Crores.

The majority of the fund’s money is invested in the financial, energy, automotive, consumer staples and healthcare sectors. It has less exposure to the financial and energy industries than other funds in the category.

ICICI Prudential Dividend Yield Equity Fund Performance

ICICI Prudential Dividend Yield Equity Fund Direct-Growth returns over the previous year were 57.08%. Since its laucnh, it has produced an average yearly return of 18.60 per cent. Every three years, the fund’s investment doubles.

The ability of the ICICI Prudential Dividend Yield Equity Fund Direct-Growth plan to generate returns on a regular basis is similar to that of other funds in its category. It has a strong capacity to limit losses in a declining market.

ICICI Prudential Dividend Yield Equity Fund Returns

ICICI Prudential Dividend Yield Equity Fund Top 5 Holdings

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

ICICI Prudential Retirement Fund Pure Equity Plan Direct-Growth is a Retirement Solutions mutual fund offered by Icici Prudential Mutual Fund. This fund was established on July 2, 2019, making it five years old. The ICICI Prudential Retirement Fund – Pure Equity Plan Direct – Growth has assets under management (AUM) of Rs 872 Crores, making it a medium-sized fund in its category.

The majority of the fund’s money is invested in the metals and mining, financial, capital goods, materials and automobile industries. It has less exposure to Metals & Mining and Financial sectors than other funds in the category.

ICICI Prudential Retirement Fund Performance

ICICI Prudential Retirement Fund – Pure Equity Plan Direct-Growth returns during the last year have been 51.37%. Since its launch, it has generated an average yearly return of 24.70%. Every three years, the fund’s investment doubles.

This Fund has a better track record of delivering returns than the majority of funds in its category. It has a strong capacity for minimizing losses in a declining market.

ICICI Prudential Retirement Fund Returns

ICICI Prudential Retirement Fund Top 5 Holdings

ICICI Prudential Retirement Fund Suitability

If you invest for 5 years or longer, you can expect profits that outperform both inflation and fixed income returns. However, you can expect your investment value to fluctuate along the way.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.

ICICI Prudential BHARAT 22 FOF Direct Growth is an equity FoF mutual fund plan offered by ICICI Prudential Mutual Fund. This fund was established on June 19, 2018, making it six years old. The ICICI Prudential BHARAT 22 FOF Direct-Growth has assets under management (AUM) of ₹1,577 crores, making it a medium-sized fund in its category.

ICICI Prudential BHARAT 22 FOF Fund Performance

The growth returns over the last year for ICICI Prudential BHARAT 22 FOF Direct are 68.28%. It has generated 22.69% average yearly returns since its debut. Every two years, the fund doubles the amount invested in it.

The ICICI Prudential BHARAT 22 FOF Direct-Growth scheme surpasses most other funds in its category in terms of its ability to consistently offer returns. It has a strong capacity for minimizing losses in a declining market.

ICICI Prudential BHARAT 22 FOF Fund Returns

ICICI Prudential BHARAT 22 FOF Fund Holdings

ICICI Prudential BHARAT 22 FOF Fund Suitability

If you invest for 5 years or longer, you may expect to outperform both the inflation rate and the returns on fixed income options. However, you can expect your investment value to fluctuate along the way.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.