hdfc mf sip - hdfcfund.com hdfc mf sip, each amount you invest grows through compounding benefits as...

They say small drops make an ocean. True, especially when it comes to your savings. The HDFC MF Systematic InvestmentPlan (SIP) is similar to the concept of a Recurring Deposit. Every month an amount you choose is invested in a mutual fundscheme of your choice. You’ l l be amazed how easy and benef ic ia l i t is to invest through HDFC MF SIP.

Become A Disciplined Investor To Reach Your Financial Goals

The first step to realising your financial goals is instilling disciplinein your investments. With the HDFC MF Systematic Investment Plan,you commit an amount of your choice (minimum of Rs. 5 00 and inmultiples of Rs. 100 thereafter*) to be invested every month in oneof our schemes.Think of each SIP payment as a small step that takes you towards yourfinancial goal. One by one, you’ll find yourself coming closer to it asyou see your investments accrue month after month. It’s as simpleas giving us at least 6 post-dated monthly cheques for a fixed amountin a scheme of your choice. It’s the perfect solution to ensure regularinvestments.As you choose how much you invest per month, you can actively planand meet financial goals. Whether it is requirement of funds for yourchild’s education, a marriage in the family or a comfortable post-retirement life, HDFC MF SIP is a tool to meet your requirements.*Minimum amounts may differ for each Scheme. Please refer to SIP EnrolmentForm for details.

The table below illustrates how a little every month can go a long way.

Savings

per month

for (15years)

Total amount

invested

(Rs. in Lacs)

Assumed rate of return(per annum)

(Rs. in lacs, 15 years later)*

Monthly Savings - What your savings may generate

5,0004,0003,0002,0001,000

9.07.25.43.61.8

14.611.7

8.85.82.9

17.413.910.4

7.03.5

20.916.712.5

8.34.2

6.0% 8.0% 10.0%

*Monthly instalments, compounded monthly, for a 15-year period.Disclaimer: The illustration above is merely indicative in nature and shouldnot be construed as investment advice. It does not in any manner implyor suggest performance of any HDFC Mutual Fund Scheme(s). Please readRisk Factors.

Yes, it’s possible.If you invest regularly. HDFC MF SIP

(Systematic Investment Plan)

www.hdfcfund.com

Take Advantage Of Rupee Cost Averaging

Most investors think that buying stocks at low prices and sellingthem when prices are high is a favourable strategy. But this involvestime-consuming and risky variables.A more successful investment strategy is to adopt the methodcalled Rupee Cost Averaging. To illustrate this we’ll compareinvesting the identical amounts through a SIP and in one lump sum.Imagine Suresh invests Rs. 1,000 every month in an equity mutualfund scheme starting in January. His friend, Rajesh, invests Rs.12,000 in one lump sum in the same scheme. The following tableillustrates how their respective investments would have performedfrom Jan to Dec:

*NAV as on the 10th every month. These are assumed NAVs in a volatile market.Disclaimer: The illustration above is merely indicative in nature and should notbe construed as investment advice. It does not in any manner imply or suggestperformance of any HDFC Mutual Fund Scheme(s). Rupee Cost Averaging neitherensures you profits nor protects you from making a loss in declining markets.Please read Risk Factors.

As seen in the table, by investing through SIP, you end up buyingmore units when the price is low and fewer units when the priceis high. However, over a period of time these market fluctuationsare generally averaged. And the average cost of your investmentis often reduced.

At the end of the 12 months, Suresh has more units than Rajesh,even though they invested the same amount. That’s because theaverage cost of Suresh’s units is much lower than that of Rajesh.Rajesh made only one investment and that too when the per-unitprice was high.

Suresh’s average unit price = 12,000/788.9056 = Rs. 15.211Rajesh’s average unit price = 12,000/738.9163 = Rs. 16.240

Your Investments Grow with Compounded BenefitsIt is far better to invest a small amount of money regularly, ratherthan save up to make one large investment. This is because while youare saving the lump sum, your savings may not earn much interest.With HDFC MF SIP, each amount you invest grows through compoundingbenefits as well. That is, the interest earned on your investment alsoearns interest. The following example illustrates this.Imagine Neha is 20 years old when she starts working. Every monthshe saves and invests Rs. 5,000 till she is 25 years old. The totalinvestment made by her over 5 years is Rs. 3 lakhs. Arjun also startsworking when he is 20 years old. But he doesn’t invest monthly. Hegets a large bonus of Rs. 3 lakhs at the age of 25 and decides toinvest the entire amount.Both of them decide not to withdraw these investments till they turn50. At 50, Neha’s Investments have grown to Rs. 46,68,273* whereasArjun’s investments have grown to Rs. 36,17,084*.Neha’s small contributions to a SIP and her decision to start investingearlier than Arjun have made her wealthier by over Rs. 10 lakhs.

*Figures based on 10% p.a. return compounded monthly.Disclaimer: The illustration above is merely indicative in nature and shouldnot be construed as investment advice. It does not in any manner imply orsuggest performance of any HDFC Mutual Fund Scheme(s). Please read RiskFactors.

And It’s All EffortlessInvesting with HDFC MF SIP is easy. Simply give us post-dated chequesfor an amount of your choice (minimum of Rs. 500 and in multiplesof Rs. 100 thereafter*) and we’ll invest the money every month in ascheme of your choice.HDFC MF SIP offers Monthly SIP (MSIP) and Quarterly SIP (QSIP). Theplans are completely flexible. You can invest for a minimum periodof six months, (maximum duration for enrolment may differ for eachscheme. Please refer SIP enrolment form). You can also decide toinvest quarterly and will need to invest for a minimum of two quarters.All you have to do after that is sit back and watch your investmentsaccumulate. So go ahead and dream.Please refer to the SIP Enrolment Form for terms and conditionsbefore enrolment.*Minimum amounts may differ for each Scheme.

Suresh’s Investment Rajesh’s Investment

12,000 738.9163Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

16.240

16.266

15.123

15.266

16.845

16.991

15.501

15.114

12.774

13.848

14.566

15.111

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

12,000

61.5764

61.4779

66.1244

65.5050

59.3648

58.8547

64.5120

66.1638

78.2840

72.2126

68.6530

66.1770

788.9056

Amount(Rs.)

UnitsMonth NAV*(Rs.)

Amount(Rs.)

Units

12,000 738.9163

Rup

ees

0

2

4

6

8

10

12

14

16

18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

When the price is thehighest, you buy the leastnumber of units

When the price is the lowest,you buy the highest numberof units

58.8547units

78.2840units

Rup

ees

Rajesh’’’’’’’’’’’’’’’’’’’’’s AverageCost Price

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Suresh’‘sAverage

Cost Price

Actual PriceMovement

0

2

4

6

8

10

12

14

16

18

See For YourselfTo illustrate the advantages of SIP Investments, this is how your investments would have grown if you had invested say Rs. 1,000 systematicallyin the following schemes, on the first Business Day of Every Month over a period of time.

2,255.01 635.58

2,237.00

(An open-ended Equity linked savings schemewith lock-in period of 3 years.)

HDFC Growth Fund

Total AmountInvested (Rs.’000)

Since InceptionSept 11, 00

109.00

SIP Investments

Benchmark Returns(Annualised)#(%)

Returns(Annualised)*(%)

5 YearSIP

3 YearSIP

1 YearSIP

455.04

30.01

22.75

60.00

104.37

19.29

36.00

48.69

17.80

12.00

17.69

107.58

*Past Performance may or may not be sustained in the future.#SENSEX

22.32 20.60 98.74

HDFC Top 200 Fund


Since InceptionOct 11, 96

156.00

SIP Investments



Market Value as onSep 30,, 2009 (Rs.’000)

5 YearSIP

3 YearSIP

1 YearSIP

1,267.10

29.10

18.86

60.00

116.64

18.42

36.00

54.01

18.64

12.00

19.10

117.41

*Past Performance may or may not be sustained in the future.#BSE 200

26.95 28.16 125.86

HDFC Long Term Advantage Fund


Since InceptionJan 02, 01

105.00

SIP Investments



Market Value as onSep 30, 2009 (Rs.’000)

5 YearSIP

3 YearSIP

1 YearSIP

440.63

31.41

23.36

60.00

88.77

19.29

36.00

46.26

17.80

12.00

18.37

107.58

*Past Performance may or may not be sustained in the future.#SENSEX

15.67 16.95 111.73

HDFC Balanced Fund


Since InceptionSept 11, 00

109.00

SIP Investments




5 YearSIP

3 YearSIP

1 YearSIP

273.38

19.42

N.A.

60.00

90.31

15.02

36.00

48.13

16.10

12.00

16.96

63.36

*Past Performance may or may not be sustained in the future.#CRISIL Balanced Fund Index. N.A.- Not Available

16.37 19.77 85.02

HDFC Children’s Gift Fund - Savings Plan


Since InceptionMar 02, 01

103.00

SIP Investments



Market Value as onSep 29, 2009 $ (Rs.’000)

5 YearSIP

3 YearSIP

1 YearSIP

161.52

10.21

N.A.

60.00

76.08

8.51

36.00

44.11

10.75

12.00

13.66

17.14

*Past Performance may or may not be sustained in the future.#CRISIL MIP Blended Index. N.A.- Not Available$ Debt funds closing NAV is for 29th September 2009as 30th September 2009 was a non-business day for Debt funds

9.44 13.63 26.81

HDFC Children’s Gift Fund - Investment Plan



103.00

SIP Investments




5 YearSIP

3 YearSIP

1 YearSIP

218.01

16.89

N.A.

60.00

82.08

15.02

36.00

45.30

16.10

12.00

16.64

63.36


12.49 15.48 79.01

HDFC TaxSaver



162.00

SIP Investments




5 YearSIP

3 YearSIP

1 YearSIP

34.81

18.22

60.00

100.41

17.38

36.00

49.47

17.89

12.00

19.28

114.08

*Past Performance may or may not be sustained in the future.#S&P CNX 500

20.72 21.74 129.35

10 YearSIP

120.00

21.20

31.34

HDFC Equity Fund


Since InceptionJan 01, 95

177.00

SIP Investments



Market Value as onSep 30,, 2009 (Rs.’000)

5 YearSIP

3 YearSIP

1 YearSIP

30.34

17.00

60.00

111.76

17.38

36.00

52.65

17.89

12.00

19.77

114.08


25.17 26.28 139.02

10 YearSIP

120.00

657.34

21.20

31.96

HDFC Capital Builder Fund


Since InceptionFeb 01, 94

188.00

SIP Investments



Market Value as onSep 30, 2009 (Rs.’000 )

5 YearSIP

3 YearSIP

1 YearSIP

1,215.50

21.19

15.93

60.00

96.09

17.38

36.00

49.03

17.89

12.00

18.85

114.08


18.91 21.09 120.90

10 YearSIP

120.00

508.85

21.20

27.22

HDFC Prudence Fund


Since InceptionFeb 01, 94

188.00

SIP Investments




5 YearSIP

3 YearSIP

1 YearSIP

1,726.58

24.93

N.A.

60.00

104.04

15.02

36.00

51.12

16.10

12.00

18.30

63.36


22.91 24.11 110.40

10 YearSIP

120.00

516.94

N.A.

27.51

10 YearSIP

120.00

678.92

32.56

21.60

(An open-ended Equity linked savings scheme with lock-in period of 3 years.)


Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the Schemes' objectives will be achieved and the NAV of the Schemesmay go up or down depending upon the factors and forces affecting the securities market. Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) donot indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will bepaid regularly. Investors in the Schemes are not being offered any guaranteed / assured returns. The NAV of the units issued under the Schemes may be affected, inter-alia by changes inthe interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price / Interest Rate Risk andCredit Risk. HDFC Growth Fund (an open-ended growth scheme; the objective of the scheme is to generate long term capital appreciation from a portfolio that is invested predominantlyin equity and equity related instruments), HDFC Equity Fund (an open ended growth scheme; the objective of the scheme is to achieve capital appreciation), HDFC Top 200 Fund (an openended growth scheme; the objective of the scheme is to generate long term capital appreciation from a portfolio of equity and equity linked instruments primarily drawn from the companiesin BSE 200 index), HDFC Capital Builder Fund (an open ended growth scheme; the objective of the scheme is to achieve capital appreciation in the long term), HDFC Index Fund (an openended index linked scheme; this scheme has 3 plans viz - Nifty Plan the objective of this Plan is to generate returns that are commensurate with the performance of the Nifty, subject totracking errors, Sensex Plan the objective of this Plan is to generate returns that are commensurate with the performance of the SENSEX, subject to tracking errors, and Sensex Plus Planthe objective of this Plan is to invest 80 to 90% of the net assets of the Plan in companies whose securities are included in SENSEX and between 10% & 20% of the net assets in companieswhose securities are not included in the SENSEX), HDFC Balanced Fund (an open- ended balanced scheme; the objective of the Scheme is to generate capital appreciation along with currentincome from a combined portfolio of equity and equity related and debt and money market instruments), HDFC Prudence Fund (an open ended balanced scheme; the objective of thescheme is to provide periodic returns and capital appreciation over a long period of time from a judicious mix of equity and debt instruments with an aim to prevent / minimise any capitalerosion), HDFC Children's Gift Fund (an open ended balanced scheme; the objective of both the Plans under the Scheme is to generate long term capital appreciation), HDFC Long TermAdvantage Fund (an open ended equity linked savings scheme with a lock-in period of 3 years; the objective of the Scheme is to generate long term capital appreciation from a portfoliothat is invested predominantly in equity and equity related instruments) and HDFC TaxSaver (an open ended equity linked savings scheme with a lock-in period of 3 years; the objective ofthe scheme is to achieve long term growth of capital), are only the names of the Scheme(s) and do not in any manner indicate either the quality of the Scheme(s), their future prospectsand returns. In view of the individual nature of tax consequences, each investor is advised to consult his/her professional tax advisor. Please read the Scheme Information Document of therespective Scheme(s) and Statement of Additional Information carefully before investing.HDFC Equity Fund, HDFC Capital Builder Fund and HDFC TaxSaver, which are benchmarked to S&P CNX 500 Index are not sponsored, endorsed, sold or promoted by India Index Services &Products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for anydamages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such product benchmarked to such index. "Standard & Poor’s®" and "S&P®" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by India Index Services & Products Limited (IISL), which hassublicensed such marks to the HDFC Asset Management Company Limited. The S&P CNX Nifty is not compiled, calculated or distributed by Standard & Poor’s and Standard & Poor’sand IISL make no representation regarding the advisability of investing in products that utilize any such Index as a component. All rights in the SENSEX vest in Bombay Stock ExchangeLtd. ("BSE"). BSE and SENSEX are trademarks of BSE and are used by HDFC Asset Management Company Ltd. under license. BSE shall not be liable in any manner whatsoever (includingin negligence) for any loss arising to any person whosoever out of use of or reliance on the SENSEX by any person.SIP Load Structure: Entry Load: Not applicable for SIPs registered on or after August 1, 2009. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registeredDistributor) based on the investors’ assessment of various factors including the service rendered by the ARN Holder.Exit Load: HDFC Top 200 Fund, HDFC Growth Fund, HDFC Equity Fund, HDFC Capital Builder Fund, HDFC Prudence Fund and HDFC Balanced Fund: In respect of each SIP Installment,an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment. In respect of each SIP Installment, no Exit Load is payable if Units are redeemed/ switched-out after 1 year from the date of allotment. HDFC Index Fund, HDFC TaxSaver and HDFC Long Term Advantage Fund: NilHDFC Children's Gift Fund (Savings Plan and Investment Plan): For units subject to Lock-in Period: Nil. For units not subject to Lock-in Period: 3% if the units are redeemed / switchedout within one year from the date of allotment; 2% if the units are redeemed / switched-out between the first and second year of the date of allotment; 1% if units are redeemed / switched-out between the second and third year of the date of allotment;NIL if units are redeemed / switched-out after the third year from the date of allotment.Statutory Details: HDFC Mutual Fund has been set up as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited (liability restrictedto their contribution of Rs. 1 lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and with HDFC Asset ManagementCompany Limited as the Investment Manager.

*Load is not taken into consideration and the Returns are of Growth Option. Returns computed are compounded annualised returns. Investorsare advised to refer to the Relative Performance table furnished in our monthly newsletter IntouchMutually also available on our website -www.hdfcfund.com. Past Performance may or may not be sustained in the future. Please refer SIP Enrolment Form available on the websitewww.hdfcfund.com or with the distributors or contact nearest ISC for terms and conditions including SIP load structure.Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returnsand safeguard of capital. The AMC/Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not assure a profit orguarantee protection against a loss in a declining market.

FOR MORE INFORMATION OR COPY OF THE SCHEME INFORMATION DOCUMENT, STATEMENT OF ADDITIONAL INFORMATION AND KEY INFORMATION MEMORANDUM ALONG WITH APPLICATIONFORM PLEASE CONTACT ANY OF OUR INVESTOR SERVICE CENTRES (ISCs) AT: West; AHMEDABAD - 079-4005 0055/66, ANAND - 02692-398 200, ANDHERI - 022-31257334/7332, AURANGABAD- 0240-398 8029, BHAVNAGAR - 0278-398 8029, BHOPAL - 0755-428 5385/427 7772, BORIVALI - 09920049233, GHATKOPAR - 022-65253409, INDORE - 0731-424 5434/35, JALGAON - 0257-398 2100, JAMNAGAR - 0288-3988029, KOLHAPUR: 0231-398 8029, MEHSANA - 02762-311760, MUMBAI - 022-66316333, NASHIK - 0253-6611831/32, NAGPUR - 0712-663 0301/02, PUNE -020-2552 1680/1681, RAIPUR - 0077-14020167, RAJKOT - 0281-552 4881/82/83, SURAT - 0261-246 0082/83, THANE - 022-6712 4172, VADODARA - 0265-662 1110/20/30/40, VAPI - 0260-3983900, VASHI - 022-398 80299. North; AGRA - 0562-398 761/773, AJMER - 0145-3099 000, ALIGARDH - 0571–2740770, ALLAHBAD - 0532–2561035, AMRITSAR - 0183-398 8029/2570,BAREILLY - 0581–2511408, CHANDIGARH - 0172-262 3397/4497, DEHRADUN - 0135-398 8029/7434, DELHI - 011-6632 4000, FARIDABAD - 0991011136, GURGAON - 09818818976, JAIPUR -0141-511 1125, 237 4968, JABALPUR - 0761-404 9800, JALANDHAR - 0181-398 8029/970, JAMMU - 0191-247 7911/12/13, JODHPUR - 0291-510 1927/37, KANPUR - 0512-233 1484-87,LUCKNOW - 0522-220 7591/0163, LUDHIANA - 0161-277 4321/501 4321, MEERUT - 0121 – 2602380, MORADABAD - 0591-398 8029/31/32, NOIDA - 0120-398 8029, PANIPAT - 0180-3985400/01, UDAIPUR - 0294-398 8029, VARANASI - 9935177068, East; BARBIL - 9238106527, BHAGALPUR - 0641-2300390, BHUBANESHWAR - 0674-645 0502/1502, CUTTACK - 0671-2324741/42, DHANBAD - 0326-320 5352,230 1756, DURGAPUR - 0343-398 2150, GUWAHATI - 0361-246 4758/59, GWALIOR - 0751 406 6060, JAMSHEDPUR - 0657-242 6730, KOLKATA - 033-2242 7849/53/56/59, PATNA - 0612-223 0540, 220 0747, 320 1439, RANCHI - 0651-600 3358, ROURKELA - 0661-398 8029,398 2060,SILIGURI - 0353-254 5270. SAMBALPUR - 0663-2400323,South; BANGALORE - 080-6620 5300, BELGUAM - 0831–4206915, BELLARY - 08392-276576, CALICUT - 0495-409 9222/333, 398 2310, CHENNAI - 044-4397 9797, COIMBATORE - 0422-4391861/62/63, DAVANGERE - 08192-250240, GOA - 0832–2425609/10, GULBARGA - 08472 399910, HUBLI - 0836-425 294/95. HYDERABAD - 040-23417401/05, KANNUR - 0497–2762044,KOCHI - 0484-235 7707, KOLLAM - 0474-2752070, KORAMANGALAM - 080–30922720, KOTTAYAM - 0481-2309759, MADURAI- 0452-398 8029, MALLESWARAM - 080–30922750, MANGALORE- 0824-428 5333/36, MAPUSA - 0832–2253460, MARGAO - 0832-273 7410/11, MYSORE - 0821-400 0530, PALGHAT - 0491–2548302, PANJIM - 0832-242 0307/08, PONDICHERY - 97909 72380.SALEM - 0427-398 2680, THRISSUR - 0487–6452079, TIRUPATI - 0877-2222875, TRICHY - 0431-398 2830, TRIVANDRUM - 0471-231 2226/27, VASCO - 0832–2513402, VIJAYAWADA - 0866-398 8029, VISAKHAPATNAM - 0891-276 9636, WARANGAL - 0870-2566005.

Continuing a tradition of trust.www.hdfcfund.com

REGISTERED OFFICE: Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai-400 020.Tel.: 022-6631 6333 l Fax: 022-2282 1144.

*Past Performance may or may not be sustained in the future.#SENSEX (Total Returns Index)

HDFC Index Fund - Sensex Plus Plan



SinceInceptionJuly 17, 02

87.00

SIP Investments



5 YearSIP

3 YearSIP

249.10

28.47

27.45

60.00

103.27

21.61

36.00

49.45

19.40

21.88 21.71

1 YearSIP

12.00

18.29

109.91

110.15

*Past Performance may or may not be sustained in the future.#S&P CNX Nifty (Total Returns Index)

HDFC Index Fund - Nifty Plan




87.00

SIP Investments



5 YearSIP

3 YearSIP

183.12

20.12

25.09

60.00

87.42

20.15

36.00

44.28

18.96

15.05 13.90

1 YearSIP

12.00

17.41

103.04

93.38

*Past Performance may or may not be sustained in the future.#SENSEX (Total Returns Index)

HDFC Index Fund - Sensex Plan




87.00

SIP Investments



5 YearSIP

3 YearSIP

198.18

22.25

27.45

60.00

88.74

21.61

36.00

44.31

19.40

15.66 13.94

1 YearSIP

12.00

17.77

109.91

100.22

hdfc mf sip - hdfcfund.com hdfc mf sip, each amount you invest grows through compounding benefits as...

Documents