Mutual Fund Magic: Rs 10,000 monthly SIP investors are dollar millionaires in less than 3 decades (2024)

Can you make a million dollars by just investing Rs 10,000 per month in a mutual fund scheme? The answer is yes. A monthly SIP of Rs 10,000 in HDFC Top 100 Fund would have turned you into a dollar millionaire (Rs 8.30 crore) in less than three decades.

HDFC Top 100 Fund, an open-ended equity scheme predominantly investing in large-cap stocks, has successfully completed over 27 years of existence in the market. Over the past 27 years, the fund has delivered a CAGR of around 19%. A monthly SIP of Rs 10,000 invested at the time of launch would have grown to Rs 8.30 crore by May 31, 2024. This performance is a testament to the fund's ability to navigate market fluctuations and deliver growth to investors, according to a press release by the fund house.

The scheme will follow a bottom-up approach to stock picking blended with top down sector and macro trends. The fund follows a diversified style with a blend of GARP (growth at reasonable price) and value. In stock selection, the focus is on quality of business models, management and financial metrics.

The portfolio construction of the fund is based on risk-reward of opportunities available at any given point in time. As per the mandate, over 80% of the portfolio always remains invested in the well-established largecap companies. The core of the portfolio construction is from a medium- to long-term perspective. The strategy will be in line with the fund’s philosophy of maintaining a disciplined approach of looking for quality companies at reasonable valuations.

The portfolio is well diversified in number of stocks and the fund manager takes measured sector deviations calls vs benchmark.

" Sound Investment + Time + Patience has been the time-tested principle for wealth creation in equities. HDFC Top 100 Fund, which has stood the test of time bears testimony to this. Wealth creation journey of HDFC Top 100 Fund over 27 years is also a shining example of our robust research and investment processes which has helped the fund withstand multiple market cycles over the years,” said Navneet Munot, MD & CEO - HDFC Mutual Fund.

"HDFC Top 100 Fund's performance over the past 27 years is a testament to our rigorous research, disciplined investment approach, and a focus on well-established businesses. Large-cap stocks offer stability and better risk adjusted return, making them an attractive option for investors looking for investment opportunities over the long term," said Rahul Baijal, Senior Fund Manager - Equities, HDFC Mutual Fund.