With the onset of the Covid-19 scenario, not only are businesses shutting down but people are facing the threat of losing their jobs and having their salaries cut. The need for overtime without extra pay too is the talk of the town in order to revive the economy as this adversely affects the budget of a family.
People are realizing the need for SIP which not only allows them the security but also the flexibility to withdraw cash when required. HDFC Mutual Fund Plans are ranked high in terms of the returns and security provided.
Need for SIP or Systematic Investment Plans
Previously, investors were required to invest a huge amount at a go in order to have a steady flow of income. Now, with the introduction of SIP or Systematic Investment Plans, people can opt for a routine investment of a lesser amount so that the returns are not affected greatly. The whole idea behind these plans is to provide investors with more flexibility with respect to whether they want to keep on investing or change the investment amount. In a way, these plans aim for more disciplined and diversified investment terms like those provided by HDFC Mutual Fund Plans.
Types of Mutual Funds offered by HDFC
In a bid to find the best HDFC Mutual Funds to invest in, people often tend to not research properly. Here are a few pointers to help understand the different types of funds present and the benefits each will provide:
Open-ended Mutual Funds
In these Mutual Funds, an investor has the flexibility to invest, redeem, increase/decrease or exit from the said fund at the moment of their choosing. These funds are not bound by a maturity period and are great for people who need to have a steady cash flow at hand. These open-ended funds are further divided into:
- HDFC Opportunity Fund which is ideal for investors agreeing to high-risk investments as the returns are greater too.
- HDFC Blue-Chip Fund which helps investors to invest in large-cap companies with a consistent return policy. These companies are known for their rising share value, thus providing moderate risks.
- HDFC Balanced Fund is a mix of Debt and Equity instruments that provides a steady income and is ideal for investors who are ok with high-risk investments.
- HDFC Liquid Funds aims for investment in the money market and debt industries but with low-risk investments and a steady flow of income.
Close-ended Mutual Funds
These Mutual Funds come with a maturity period allowing investors to only invest or enter such investments during the ‘New Funds Offer’ period. On the completion of the maturity period investors automatically get their investments.
Conclusion
When considering investing in the SIP Mutual Funds the need to keep track of the stock market is essential. Alongside, investors need to know their needs and thus decide on the type of Mutual Fund Plans that will cater to their needs accordingly. HDFC Mutual Fund Plans not only address the above-mentioned factors but also provide assistance to help investors decide thoroughly.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
