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.

Quant Small Cap Fund Direct Plan-Growth is a Small Cap mutual fund offered by Quant Mutual Fund. This fund was established on January 1, 2013, making it 11 years. As of now, Quant Small Cap Fund Direct Plan-Growth has assets under management (AUM) of ₹24,530 Crores, making it a medium-sized fund in its category.

The majority of the fund’s money is invested in the services, energy, financial, healthcare and consumer staples sectors. Compared to other funds in the category, it has a lower level of exposure to the energy and services sectors.

Quant Small Cap Fund Performance

The growth returns for the previous year’s Quant Small Cap Fund Direct Plan are 57.69%. It has produced returns of 20.56% on average year since its start. Every two years, the fund doubles the amount invested in it.

The Quant Small Cap Fund Direct Plan-Growth strategy outperforms other funds in its category in terms of its ability to consistently provide returns.

Quant Small Cap Fund Returns

Quant Small Cap Fund Top 5 Holdings

Quant Small Cap Fund Suitability

When you decide to invest for seven 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.

Quant Large and Mid Cap Fund Direct-Growth is a Large & MidCap mutual fund offered by Quant Mutual Fund. This fund was established on January 1, 2013, making it 11 years. As of now, the assets under management (AUM) of Quant Large and Mid Cap Fund Direct-Growth is at ₹3,573 crores, making it a medium-sized fund within its category.

The majority of the fund’s assets are invested in the consumer staples, energy, healthcare, automobile and insurance sectors. Compared to other funds in the category, it has less exposure to the Consumer Staples and Energy sectors.

Quant Large and Mid Cap Fund Performance

The last year’s direct growth returns for Quant Large and Mid Cap Funds are 61.84%. It has produced returns an average of 21.57% annually since launch. Every three years, the fund doubles the amount invested in it.

The Quant Large and Mid Cap Fund Direct-Growth strategy outperforms the majority of funds in its category in terms of returns. It has a strong capacity to control losses in a sinking market.

Quant Large and Mid Cap Fund Returns

Quant Large and Mid Cap Fund Top 5 Holdings

Quant Large and Mid Cap Fund Suitability

As long as you invest for five years or longer, you are likely to see gains 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.

Quant ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme offered by Quant Mutual Fund. This fund was launched on January 1, 2013, making it 11 years. As of now, Quant ELSS Tax Saver Fund Direct-Growth has assets under management (AUM) of ₹11,065 crores, making it a medium-sized fund in its class.

A significant portion of the fund’s money is invested in the energy, financial, consumer staples, healthcare and automobile sectors. Compared to other funds in the category, it has less exposure to the energy and financial industries.

Quant ELSS Tax Saver Fund Performance

The past year’s Quant ELSS Tax Saver Fund Direct-Growth returns were 53.27%. It has produced returns an average of 23.32% annually since its start. Every three years, the fund doubles the amount invested in it.

The Quant ELSS Tax Saver Fund Direct-Growth plan can deliver returns that are comparable to most funds in its category. Its capacity to manage losses in a declining market is below average.

Quant ELSS Tax Saver Fund Returns

Quant ELSS Tax Saver Fund Top 5 Holdings

Quant ELSS Tax Saver Fund Suitability

If you choose to invest for five years or longer, you can expect gains that outperform both inflation and fixed-income returns. However, keep in mind that the value of your investment may fluctuate over time.

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.

Quant Mid Cap Fund Direct-Growth is a Mid Cap mutual fund from Quant Mutual Fund. This fund was established on January 1, 2013, making it 11 years. Quant Mid Cap Fund Direct-Growth has ₹9,283 Crores in assets under management (AUM), making it a medium-sized fund in its class.

The majority of the fund’s money is invested in Healthcare, Services, Metals & Mining, Energy and Consumer Staples sectors. It has less exposure to the Healthcare and Services sectors than other funds in the category.

Quant Mid Cap Fund Performance

Quant Mid Cap Fund Direct-Growth returns over the last year are 58.40%. It has produced returns of 20.70% on average year since launch. Every two years, the fund doubles the amount invested in it.

The Quant Mid Cap Fund Direct-Growth scheme’s track record of regular return delivery is similar to most funds in its class. It has an average capacity for managing losses in a declining market.

Quant Mid Cap Fund Returns

Quant Mid Cap Fund Top 5 Holdings

Quant Mid Cap Fund Suitability

When you choose to invest for seven years or longer, you are likely to see gains 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.

Quant Infrastructure Fund Direct-Growth is Quant Mutual Fund’s sectoral infrastructure mutual fund scheme. This fund has been operating for 11 years. The assets under management (AUM) of Quant Infrastructure Fund Direct-Growth is at ₹4,104 Crores, making it a medium-sized fund within its category.

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

Quant Infrastructure Fund Performance

The last year’s direct growth returns for Quant Infrastructure Funds are 70.62%. It has produced returns of 20.49% on average year since its start. Every two years, the fund doubles the amount invested in it.

The Quant Infrastructure Fund Direct-Growth scheme’s track record of regular return delivery is similar to that of the majority of funds in its class.

Quant Infrastructure Fund Returns

Quant Infrastructure 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.

The UTI Mutual Fund offers an aggressive hybrid mutual fund scheme called UTI Aggressive Hybrid Fund Direct Fund-Growth. This fund was established on January 1, 2013, making it 11 years old. UTI Aggressive Hybrid Fund Direct Fund-Growth has assets under management (AUM) of ₹6,064 Crores, making it a medium-sized fund in its class.

The fund’s equity investments are mainly focused on the Financial, Technology, Energy, Healthcare and Consumer Staples sectors. It has less exposure to the financial and technology industries than other funds in the category.

UTI Aggressive Hybrid Fund Performance

UTI Aggressive Hybrid Fund Direct Fund-Growth returns for the last year were 34.04%. Since its launch, it has generated an average annual returns of 14.33%. Every four years, the fund doubles the money invested.

The UTI Aggressive Hybrid Fund Direct Fund-Growth scheme can often deliver returns that are similar to other funds in its category. Its capacity to manage losses in a declining market is above average.

UTI Aggressive Hybrid Fund Returns

UTI Aggressive Hybrid Fund Top 5 Holdings

UTI Aggressive Hybrid Fund Suitability

If you choose to 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.

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.

UTI Mutual Fund offers a Large Cap Index mutual fund scheme called UTI Nifty 50 Index Fund Direct-Growth. This fund was established on January 1, 2013, making it 11 years old. UTI Nifty 50 Index Fund Direct-Growth has assets under management (AUM) of ₹19,357 Crores, making it a medium-sized fund in its class.

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

UTI Nifty 50 Index Fund Performance

The past year’s direct growth returns on the UTI Nifty 50 Index Fund were 27.24%. It has generated 13.88% average yearly returns since its launch. Every four years, the fund doubles the amount invested in it.

The UTI Nifty 50 Index Fund Direct-Growth scheme can often generate returns, which is comparable to other funds in its category. Its capacity to manage losses in a declining market is below average.

UTI Nifty 50 Index Fund Returns

UTI Nifty 50 Index Fund Top 5 Holdings

UTI Nifty 50 Index Fund Suitability

If you plan to invest for 5years or longer, you may expect gains that 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.

UTI Liquid Direct-Growth is a liquid mutual fund scheme offered by UTI Mutual Fund. This fund has been in operation for 11 years, having been founded on January 1, 2013. UTI Liquid Direct-Growth has ₹26,266 crores in assets under management (AUM) as of 30/06/2024, which makes it a medium-sized fund in its class.

UTI Liquid Fund Performance

The last year’s UTI Liquid Direct-Growth returns are 7.42%. It has generated 6.84% average yearly returns since its launch.

The UTI Liquid Direct-Growth scheme often delivers returns that are similar to the majority of funds in its category. It performs better than average at controlling losses in a declining market.

UTI Liquid Fund Returns

UTI Liquid 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.

UTI Mutual Fund offers a Value-Oriented mutual fund scheme called UTI Value Fund Direct-Growth. This fund was established on January 1, 2013, making it 11 years old. UTI Value Fund Direct-Growth has assets under management (AUM) of ₹10,356 crores, making it a medium-sized fund in its class.

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

UTI Value Fund Performance

The last year’s direct growth returns for UTI Value Fund are 46.70%. It has generated 15.90% average yearly returns since its launch. Every four years, the fund doubles the amount invested in it.

The UTI Value Fund Direct-Growth scheme can often generate returns that are similar to other funds in its category. Its capacity to manage losses in a sinking market is average.

UTI Value Fund Returns

UTI Value Fund Top 5 Holdings

UTI Value Fund Suitability

If you invest for five years or longer, you may anticipate returns 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.