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SIP vs RD
Which is Better Investment Option?
SIP vs RD? where to invest for better wealth creation? An ultimate approach to generate wealth is saving money every month. Typically, a Systematic Investment plan (SIP) and an RD (Recurring deposit) are two of the most efficient investment options in India to save money every month. Both SIP and RD enable investors to invest small sums of money in regular intervals to earn good returns. With a Systematic Investment Plan (SIP), the investors have to invest a small amount of money, either monthly or quarterly, to earn Market-linked returns. While with an RD (Recurring Deposit), the investor invests fixed amount of money for a pre-decided period to yield fixed returns. Now, the investors can easily calculate SIP returns using a sip calculator and RD returns using an RD Calculator to estimate their investment needs.
In India, few of the most convenient periodic investment options include SIP, RD and PPF (SIP being the most popular one).
SIP Vs RD - Product Structure
Systematic Investment Plan (SIP)
A SIP is an Investing mode to invest a certain amount in Mutual Funds periodically. The minimum amount to invest in a SIP is as less as INR 500. Usually, SIPs in equity are said to offer good returns because they are market linked and can give return commensurate to the market. As per various sources, the SIP returns over long periods can be as high as 12% to 22% p.a., which is much higher than the interest rates offered by an RD (Recurring Deposit). The only disadvantage of a SIP (Systematic Investment Plan) is that the SIP returns are volatile since they are market-linked, so the risk Factor is much higher. However, when invested for long-term, SIPs are considered to offer good returns.
Recurring Deposit (RD)
A Recurring Deposit or RD is an investment scheme in which the investor has to choose an investment amount and the tenure of investment before investing. Under an RD, the investor has to invest monthly over the selected tenure to earn some interest and the invested amount. Generally, the interest rate of RD varies from 7% to 9% p.a. and is consequently higher for senior citizens. The RD return rate is much less than a Fixed Deposit and SIP because an RD earns interest of the entire 12 months only on the first deposit. On the second deposit in an RD, the interest is earned for 11 months, on the third deposit for 10 months and so on. So, there are no compounding benefits in an RD, unlike FD and SIP. The RD returns are fixed and can be calculated easily using an RD calculator. The major disadvantage of a Recurring Deposit is that it is not tax efficient. TDS (Tax Deducted at Source) is applicable on the interest Income from RD.
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Top 7 Performing Balanced Fund SIP
As Balanced Fund have less riskier than Equity Mutual Funds, Balanced Funds can give stable returns over extended period of time. List of funds below are based on last 3 Years annualized returns (CAGR) and funds having net assets over 500 Crore & Fund Age > 3 years.
(Erstwhile ICICI Prudential Balanced Fund) To generate long term capital appreciation and current income from a portfolio
that is invested in equity and equity related securities as well as in fixed income
securities. ICICI Prudential Equity and Debt Fund is a Hybrid - Hybrid Equity fund was launched on 3 Nov 99. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Equity and Debt Fund Returns up to 1 year are on (Erstwhile HDFC Growth Fund and HDFC Prudence Fund) Aims to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. HDFC Balanced Advantage Fund is a Hybrid - Dynamic Allocation fund was launched on 11 Sep 00. It is a fund with Moderately High risk and has given a Below is the key information for HDFC Balanced Advantage Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Dynamic Plan) To generate capital appreciation by actively investing in equity and equity related securities. For defensive considerations, the Scheme may invest in debt, money market instruments and derivatives. The investment manager will have the discretion to take aggressive asset calls i.e. by staying 100% invested in equity market/equity related instruments at a given point of time and 0% at another, in which case, the fund may be invested in debt related instruments at its discretion. The AMC may choose to churn the portfolio of the Scheme in order to achieve the investment objective. The Scheme is suitable for investors seeking high returns and for those who are willing to take commensurate risks. ICICI Prudential Multi-Asset Fund is a Hybrid - Multi Asset fund was launched on 31 Oct 02. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Multi-Asset Fund Returns up to 1 year are on (Erstwhile UTI Balanced Fund) The scheme aims to invest in a portfolio of equity/equity related securities and fixed income securities (debt and money market securities) with a view to generating regular income together with capital appreciation. UTI Hybrid Equity Fund is a Hybrid - Hybrid Equity fund was launched on 2 Jan 95. It is a fund with Moderately High risk and has given a Below is the key information for UTI Hybrid Equity Fund Returns up to 1 year are on (Erstwhile Kotak Balance Fund) The objective of the Scheme is to achieve growth by investing in equity and equity related instruments, balanced with income generation by investing in debt and money market instruments. Kotak Equity Hybrid Fund is a Hybrid - Hybrid Equity fund was launched on 3 Nov 14. It is a fund with Moderately High risk and has given a Below is the key information for Kotak Equity Hybrid Fund Returns up to 1 year are on (Erstwhile Reliance Regular Savings Fund - Balanced Plan) The primary investment objective of this option is to generate consistent returns and appreciation of capital by investing in mix of securities comprising of Equity, Equity related instruments & fixed income instruments. Nippon India Equity Hybrid Fund is a Hybrid - Hybrid Equity fund was launched on 8 Jun 05. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Equity Hybrid Fund Returns up to 1 year are on (Erstwhile HDFC Premier Multi-Cap Fund and HDFC Balanced Fund) To generate capital appreciation in the long term through equity
investments by investing in a diversified portfolio of Mid Cap & Large Cap ‘blue chip’ companies. HDFC Hybrid Equity Fund is a Hybrid - Hybrid Equity fund was launched on 6 Apr 05. It is a fund with Moderately High risk and has given a Below is the key information for HDFC Hybrid Equity Fund Returns up to 1 year are on 1. ICICI Prudential Equity and Debt Fund
CAGR/Annualized return of 14.9% since its launch. Ranked 7 in Hybrid Equity category. Return for 2022 was 11.7% , 2021 was 41.7% and 2020 was 9% . ICICI Prudential Equity and Debt Fund
Growth Launch Date 3 Nov 99 NAV (22 Aug 23) ₹273.24 ↑ 0.76 (0.28 %) Net Assets (Cr) ₹24,990 on 31 Jul 23 Category Hybrid - Hybrid Equity AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.78 Sharpe Ratio 1.57 Information Ratio 1.57 Alpha Ratio 7.39 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,306 30 Sep 20 ₹9,841 30 Sep 21 ₹16,836 30 Sep 22 ₹18,021 30 Sep 23 ₹22,159 Returns for ICICI Prudential Equity and Debt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month 2.3% 3 Month 9.6% 6 Month 13.8% 1 Year 18.8% 3 Year 26.8% 5 Year 15.9% 10 Year 15 Year Since launch 14.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 11.7% 2021 41.7% 2020 9% 2019 9.3% 2018 -1.9% 2017 24.8% 2016 13.7% 2015 2.1% 2014 45.6% 2013 11.2% Fund Manager information for ICICI Prudential Equity and Debt Fund
Name Since Tenure Sankaran Naren 7 Dec 15 7.74 Yr. Manish Banthia 19 Sep 13 9.96 Yr. Mittul Kalawadia 29 Dec 20 2.67 Yr. Nikhil Kabra 29 Dec 20 2.67 Yr. Sri Sharma 30 Apr 21 2.34 Yr. Sharmila D’mello 31 Jul 22 1.09 Yr. Data below for ICICI Prudential Equity and Debt Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 7.55% Equity 74.64% Debt 17.81% Equity Sector Allocation
Sector Value Financial Services 19.44% Consumer Cyclical 12.55% Energy 9.67% Utility 8.86% Communication Services 6.61% Technology 5.77% Health Care 3.55% Industrials 3.42% Basic Materials 1.95% Real Estate 1.47% Consumer Defensive 1.12% Debt Sector Allocation
Sector Value Government 13.37% Cash Equivalent 7.16% Corporate 4.84% Credit Quality
Rating Value A 4.2% AA 18.08% AAA 77.72% Top Securities Holdings / Portfolio
Name Holding Value Quantity NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 28 Feb 17 | 5325559% ₹2,190 Cr 100,312,803 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Jul 12 | ICICIBANK7% ₹1,820 Cr 18,232,406 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 16 | BHARTIARTL6% ₹1,487 Cr 16,713,637 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 30 Apr 17 | 5003125% ₹1,218 Cr 68,788,701
↓ -2,695,000 Tata Motors Ltd Class A (Consumer Cyclical)
Equity, Since 30 Nov 16 | TATAMTRDVR4% ₹1,120 Cr 27,024,763 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 22 | RELIANCE4% ₹1,051 Cr 4,123,676
↑ 131,192 Infosys Ltd (Technology)
Equity, Since 30 Jun 16 | INFY4% ₹951 Cr 7,013,506 8.51% Govt Stock 2033
Sovereign Bonds | -4% ₹912 Cr 90,325,000
↓ -7,625,000 7.93% Govt Stock 2034
Sovereign Bonds | -3% ₹848 Cr 85,768,010 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 21 | HDFCBANK3% ₹779 Cr 4,715,261
↑ 1,565,175 2. HDFC Balanced Advantage Fund
CAGR/Annualized return of 18.1% since its launch. Ranked 23 in Dynamic Allocation category. Return for 2022 was 18.8% , 2021 was 26.4% and 2020 was 7.6% . HDFC Balanced Advantage Fund
Growth Launch Date 11 Sep 00 NAV (22 Aug 23) ₹369.934 ↑ 0.81 (0.22 %) Net Assets (Cr) ₹60,641 on 31 Jul 23 Category Hybrid - Dynamic Allocation AMC HDFC Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.61 Sharpe Ratio 1.77 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,563 30 Sep 20 ₹9,523 30 Sep 21 ₹15,250 30 Sep 22 ₹16,585 30 Sep 23 ₹21,000 Returns for HDFC Balanced Advantage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month 2.4% 3 Month 9.8% 6 Month 15.2% 1 Year 21.7% 3 Year 25.4% 5 Year 14.1% 10 Year 15 Year Since launch 18.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 18.8% 2021 26.4% 2020 7.6% 2019 6.9% 2018 -3.1% 2017 27.9% 2016 9.4% 2015 0.3% 2014 51.8% 2013 2.1% Fund Manager information for HDFC Balanced Advantage Fund
Name Since Tenure Anil Bamboli 29 Jul 22 1.09 Yr. Gopal Agrawal 29 Jul 22 1.09 Yr. Arun Agarwal 6 Oct 22 0.9 Yr. Srinivasan Ramamurthy 29 Jul 22 1.09 Yr. Nirman Morakhia 15 Feb 23 0.54 Yr. Dhruv Muchhal 22 Jun 23 0.19 Yr. Data below for HDFC Balanced Advantage Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 13.8% Equity 60.56% Debt 25.64% Equity Sector Allocation
Sector Value Financial Services 25.02% Industrials 10.41% Energy 7.31% Utility 5.72% Technology 4.35% Consumer Cyclical 3.71% Health Care 3.44% Consumer Defensive 3.2% Basic Materials 1.9% Communication Services 1.72% Real Estate 1.22% Debt Sector Allocation
Sector Value Government 19.15% Cash Equivalent 12.3% Corporate 7.98% Credit Quality
Rating Value AA 2.21% AAA 97.79% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | HDFCBANK7% ₹4,106 Cr 26,129,301
↑ 1,576,300 7.38% Govt Stock 2027
Sovereign Bonds | -4% ₹2,740 Cr 272,081,800 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK4% ₹2,636 Cr 27,493,024
↑ 116,200 Coal India Ltd (Energy)
Equity, Since 31 Jan 18 | COALINDIA4% ₹2,258 Cr 98,170,711 State Bank of India (Financial Services)
Equity, Since 31 May 07 | SBIN4% ₹2,257 Cr 40,214,771 NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 31 Aug 16 | 5325553% ₹2,148 Cr 97,489,178
↓ -2,500,000 ITC Ltd (Consumer Defensive)
Equity, Since 30 Apr 18 | ITC3% ₹1,829 Cr 41,596,926 Infosys Ltd (Technology)
Equity, Since 31 Oct 09 | INFY3% ₹1,709 Cr 11,903,498 7.1% Govt Stock 2029
Sovereign Bonds | -3% ₹1,559 Cr 156,500,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 12 | LT2% ₹1,531 Cr 5,666,515
↓ -178,500 3. ICICI Prudential Multi-Asset Fund
CAGR/Annualized return of 21.1% since its launch. Ranked 53 in Multi Asset category. Return for 2022 was 16.8% , 2021 was 34.7% and 2020 was 9.9% . ICICI Prudential Multi-Asset Fund
Growth Launch Date 31 Oct 02 NAV (21 Aug 23) ₹535.756 ↑ 2.12 (0.40 %) Net Assets (Cr) ₹21,705 on 31 Jul 23 Category Hybrid - Multi Asset AMC ICICI Prudential Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 1.83 Sharpe Ratio 2.07 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,285 30 Sep 20 ₹9,956 30 Sep 21 ₹15,929 30 Sep 22 ₹17,485 30 Sep 23 ₹21,445 Returns for ICICI Prudential Multi-Asset Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month 1.5% 3 Month 8% 6 Month 11.6% 1 Year 18.9% 3 Year 24.7% 5 Year 15.7% 10 Year 15 Year Since launch 21.1% Historical performance (Yearly) on absolute basis
Year Returns 2022 16.8% 2021 34.7% 2020 9.9% 2019 7.7% 2018 -2.2% 2017 28.2% 2016 12.5% 2015 -1.4% 2014 37% 2013 16.3% Fund Manager information for ICICI Prudential Multi-Asset Fund
Name Since Tenure Sankaran Naren 1 Feb 12 11.59 Yr. Anuj Tagra 28 May 18 5.27 Yr. Ihab Dalwai 3 Jun 17 6.25 Yr. Sri Sharma 30 Apr 21 2.34 Yr. Gaurav Chikane 2 Aug 21 2.08 Yr. Sharmila D’mello 31 Jul 22 1.09 Yr. Data below for ICICI Prudential Multi-Asset Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 20.49% Equity 66.97% Debt 10.17% Other 2.38% Equity Sector Allocation
Sector Value Financial Services 19.06% Energy 8.55% Consumer Cyclical 7.9% Utility 7.62% Health Care 6.81% Technology 5.14% Communication Services 4.5% Basic Materials 3.17% Industrials 2.51% Consumer Defensive 0.88% Real Estate 0.59% Debt Sector Allocation
Sector Value Cash Equivalent 18.18% Government 9.12% Corporate 3.35% Credit Quality
Rating Value A 3.46% AA 3.62% AAA 92.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 31 Mar 17 | 5325557% ₹1,586 Cr 72,619,143 ICICI Bank Ltd (Financial Services)
Equity, Since 31 May 06 | ICICIBANK6% ₹1,249 Cr 12,514,050
↑ 200,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 22 | HDFCBANK4% ₹811 Cr 4,914,109
↑ 1,752,434 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Aug 21 | MARUTI4% ₹768 Cr 782,391
↑ 64,702 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 30 Jun 17 | 5003123% ₹756 Cr 42,675,265 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 20 | RELIANCE3% ₹724 Cr 2,840,005
↓ -71,750 Infosys Ltd (Technology)
Equity, Since 31 Oct 19 | INFY3% ₹717 Cr 5,287,549
↑ 200,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 May 16 | BHARTIARTL3% ₹714 Cr 8,028,054
↑ 2,461 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 30 Sep 16 | SUNPHARMA3% ₹602 Cr 5,269,197
↑ 300,000 ICICI Pru Gold ETF
- | -2% ₹526 Cr 101,034,055 4. UTI Hybrid Equity Fund
CAGR/Annualized return of 14.9% since its launch. Ranked 12 in Hybrid Equity category. Return for 2022 was 5.6% , 2021 was 30.5% and 2020 was 13.2% . UTI Hybrid Equity Fund
Growth Launch Date 2 Jan 95 NAV (22 Aug 23) ₹295.495 ↑ 0.49 (0.17 %) Net Assets (Cr) ₹4,799 on 31 Jul 23 Category Hybrid - Hybrid Equity AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.95 Sharpe Ratio 1.32 Information Ratio 1.49 Alpha Ratio 5.01 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹9,875 30 Sep 20 ₹9,835 30 Sep 21 ₹15,178 30 Sep 22 ₹15,341 30 Sep 23 ₹18,376 Returns for UTI Hybrid Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month 0.7% 3 Month 9% 6 Month 13.6% 1 Year 16.4% 3 Year 21.4% 5 Year 11.2% 10 Year 15 Year Since launch 14.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 5.6% 2021 30.5% 2020 13.2% 2019 2.5% 2018 -5.6% 2017 25.7% 2016 8.8% 2015 2.4% 2014 32.8% 2013 6.8% Fund Manager information for UTI Hybrid Equity Fund
Name Since Tenure V Srivatsa 24 Sep 09 13.94 Yr. Sunil Patil 5 Feb 18 5.57 Yr. Data below for UTI Hybrid Equity Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 4.07% Equity 70.62% Debt 25.3% Equity Sector Allocation
Sector Value Debt Sector Allocation
Sector Value Government 13.56% Corporate 10.99% Cash Equivalent 3.68% Credit Quality
Rating Value AA 11.13% AAA 88.87% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 29 Feb 20 | HDFCBANK7% ₹330 Cr 2,102,248 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 10 | ICICIBANK6% ₹264 Cr 2,755,978 7.26% Govt Stock 2033
Sovereign Bonds | -5% ₹252 Cr 2,500,000,000 Infosys Ltd (Technology)
Equity, Since 31 Mar 06 | INFY5% ₹218 Cr 1,515,520 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 12 | LT4% ₹174 Cr 644,059 ITC Ltd (Consumer Defensive)
Equity, Since 31 Aug 06 | ITC3% ₹155 Cr 3,525,746 Reliance Industries Ltd (Energy)
Equity, Since 31 Dec 19 | RELIANCE3% ₹134 Cr 555,397
↑ 203,694 7.41% Govt Stock 2036
Sovereign Bonds | -3% ₹127 Cr 1,250,000,000 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Mar 21 | M&M3% ₹126 Cr 797,162
↑ 52,607 IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Jul 22 | INDUSINDBK2% ₹107 Cr 775,173
↓ -86,670 5. Kotak Equity Hybrid Fund
CAGR/Annualized return of 11.4% since its launch. Ranked 17 in Hybrid Equity category. Return for 2022 was 5% , 2021 was 28.9% and 2020 was 15.4% . Kotak Equity Hybrid Fund
Growth Launch Date 3 Nov 14 NAV (22 Aug 23) ₹45.871 ↑ 0.13 (0.28 %) Net Assets (Cr) ₹4,050 on 31 Jul 23 Category Hybrid - Hybrid Equity AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.91 Sharpe Ratio 1.16 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,871 30 Sep 20 ₹11,212 30 Sep 21 ₹16,901 30 Sep 22 ₹17,475 30 Sep 23 ₹20,118 Returns for Kotak Equity Hybrid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month 0.7% 3 Month 7.5% 6 Month 11.3% 1 Year 12.8% 3 Year 21.1% 5 Year 13.2% 10 Year 15 Year Since launch 11.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 5% 2021 28.9% 2020 15.4% 2019 14.1% 2018 -6.2% 2017 23.2% 2016 11% 2015 1.9% 2014 2013 Fund Manager information for Kotak Equity Hybrid Fund
Name Since Tenure Pankaj Tibrewal 25 Aug 15 8.02 Yr. Abhishek Bisen 4 Jun 09 14.25 Yr. Arjun Khanna 30 Apr 22 1.34 Yr. Data below for Kotak Equity Hybrid Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 3.27% Equity 71.79% Debt 24.95% Equity Sector Allocation
Sector Value Financial Services 18.48% Industrials 12.09% Consumer Cyclical 8.87% Basic Materials 8.81% Technology 6.07% Health Care 5.22% Consumer Defensive 4.33% Energy 3.75% Real Estate 2.11% Utility 1.84% Debt Sector Allocation
Sector Value Government 20.96% Corporate 3.98% Cash Equivalent 3.27% Credit Quality
Rating Value A 1.48% AA 2.48% AAA 96.04% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 11 | HDFCBANK5% ₹214 Cr 1,295,812 7.26% Govt Stock 2033
Sovereign Bonds | -5% ₹197 Cr 19,534,950
↑ 4,500,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 10 | ICICIBANK5% ₹186 Cr 1,865,708 7.17% Govt Stock 2030
Sovereign Bonds | -4% ₹162 Cr 16,248,510
↑ 6,248,510 8.51% Govt Stock 2033
Sovereign Bonds | -3% ₹115 Cr 11,442,800 Infosys Ltd (Technology)
Equity, Since 30 Apr 10 | INFY3% ₹114 Cr 839,800 State Bank of India (Financial Services)
Equity, Since 31 Aug 12 | SBIN3% ₹113 Cr 1,819,100 7.41% Govt Stock 2036
Sovereign Bonds | -3% ₹106 Cr 10,500,000
↑ 10,500,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 10 | LT2% ₹95 Cr 356,028 Carborundum Universal Ltd (Industrials)
Equity, Since 30 Sep 21 | CARBORUNIV2% ₹87 Cr 716,030
↑ 15,000 6. Nippon India Equity Hybrid Fund
CAGR/Annualized return of 12% since its launch. Ranked 8 in Hybrid Equity category. Return for 2022 was 6.6% , 2021 was 27.8% and 2020 was -5.3% . Nippon India Equity Hybrid Fund
Growth Launch Date 8 Jun 05 NAV (22 Aug 23) ₹78.4702 ↑ 0.28 (0.36 %) Net Assets (Cr) ₹3,044 on 31 Jul 23 Category Hybrid - Hybrid Equity AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately High Expense Ratio 2.06 Sharpe Ratio 1.33 Information Ratio 1.37 Alpha Ratio 4.96 Min Investment 500 Min SIP Investment 100 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹9,820 30 Sep 20 ₹8,066 30 Sep 21 ₹12,253 30 Sep 22 ₹12,486 30 Sep 23 ₹14,919 Returns for Nippon India Equity Hybrid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month 0.7% 3 Month 8.6% 6 Month 13.9% 1 Year 16.7% 3 Year 21.1% 5 Year 6.7% 10 Year 15 Year Since launch 12% Historical performance (Yearly) on absolute basis
Year Returns 2022 6.6% 2021 27.8% 2020 -5.3% 2019 3% 2018 -4.9% 2017 29.5% 2016 4.2% 2015 8.7% 2014 43.2% 2013 3.5% Fund Manager information for Nippon India Equity Hybrid Fund
Name Since Tenure Meenakshi Dawar 10 Sep 21 1.98 Yr. Kinjal Desai 25 May 18 5.27 Yr. Sushil Budhia 1 Feb 20 3.58 Yr. Akshay Sharma 1 Dec 22 0.75 Yr. Data below for Nippon India Equity Hybrid Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 4.42% Equity 74.6% Debt 20.98% Equity Sector Allocation
Sector Value Financial Services 24.77% Industrials 9.31% Technology 7.77% Consumer Cyclical 7.21% Health Care 6.61% Consumer Defensive 5.63% Energy 5.15% Basic Materials 2.84% Utility 2.55% Communication Services 2.16% Real Estate 0.6% Debt Sector Allocation
Sector Value Corporate 16.73% Cash Equivalent 4.42% Government 4.25% Credit Quality
Rating Value A 3.25% AA 34.18% AAA 62.57% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 10 | HDFCBANK7% ₹209 Cr 1,332,356 Infosys Ltd (Technology)
Equity, Since 28 Feb 11 | INFY5% ₹155 Cr 1,080,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 12 | ICICIBANK5% ₹151 Cr 1,570,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Jul 14 | RELIANCE4% ₹132 Cr 548,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 28 Feb 13 | LT4% ₹123 Cr 455,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 18 | 5322154% ₹106 Cr 1,089,000 Sun Pharmaceuticals Industries Ltd (Healthcare)
Equity, Since 31 Oct 11 | SUNPHARMA3% ₹93 Cr 840,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Mar 16 | ITC3% ₹86 Cr 1,950,000 State Bank of India (Financial Services)
Equity, Since 31 Jul 16 | SBIN2% ₹73 Cr 1,300,000 NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 31 Aug 20 | 5325552% ₹65 Cr 2,950,620 7. HDFC Hybrid Equity Fund
CAGR/Annualized return of 15.4% since its launch. Ranked 57 in Hybrid Equity category. Return for 2022 was 8.9% , 2021 was 25.7% and 2020 was 13.4% . HDFC Hybrid Equity Fund
Growth Launch Date 6 Apr 05 NAV (22 Aug 23) ₹93.608 ↑ 0.17 (0.18 %) Net Assets (Cr) ₹21,038 on 31 Jul 23 Category Hybrid - Hybrid Equity AMC HDFC Asset Management Company Limited Rating ☆☆ Risk Moderately High Expense Ratio 1.76 Sharpe Ratio 1.45 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 30 Sep 18 ₹10,000 30 Sep 19 ₹10,698 30 Sep 20 ₹10,385 30 Sep 21 ₹15,673 30 Sep 22 ₹16,173 30 Sep 23 ₹18,967 Returns for HDFC Hybrid Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month -1.4% 3 Month 5.2% 6 Month 10.4% 1 Year 14.9% 3 Year 20.8% 5 Year 12.1% 10 Year 15 Year Since launch 15.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 8.9% 2021 25.7% 2020 13.4% 2019 7.5% 2018 -2.8% 2017 27.5% 2016 9.7% 2015 3% 2014 51.5% 2013 8.8% Fund Manager information for HDFC Hybrid Equity Fund
Name Since Tenure Chirag Setalvad 2 Apr 07 16.43 Yr. Anupam Joshi 6 Oct 22 0.9 Yr. Dhruv Muchhal 22 Jun 23 0.19 Yr. Data below for HDFC Hybrid Equity Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 2.35% Equity 68.31% Debt 29.34% Equity Sector Allocation
Sector Value Financial Services 25.28% Industrials 12.02% Technology 7.54% Energy 5.74% Consumer Defensive 4.95% Communication Services 2.63% Utility 2.47% Consumer Cyclical 2.46% Health Care 2.33% Basic Materials 1.81% Real Estate 0.78% Debt Sector Allocation
Sector Value Government 19.02% Corporate 10.32% Cash Equivalent 2.35% Credit Quality
Rating Value AA 4.45% AAA 95.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Aug 13 | HDFCBANK8% ₹1,719 Cr 10,940,000 7.1% Govt Stock 2029
Sovereign Bonds | -7% ₹1,495 Cr 150,000,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 10 | ICICIBANK7% ₹1,400 Cr 14,600,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 May 15 | ITC5% ₹1,003 Cr 22,814,004 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 18 | RELIANCE4% ₹885 Cr 3,675,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 11 | LT4% ₹837 Cr 3,096,440 Infosys Ltd (Technology)
Equity, Since 31 Jan 03 | INFY4% ₹750 Cr 5,223,368 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 15 | 5322153% ₹706 Cr 7,250,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 11 | SBIN3% ₹702 Cr 12,508,071 National Bank For Agriculture And Rural Development
Debentures | -3% ₹599 Cr 60,000
SIP Vs RD: Which is Better RD Or SIP?
Difference Between Recurring Deposit and SIP
The factors used here are the rate of return, liquidity, taxation, Volatility, risk factors, etc.
| Factors | Recurring Deposit (RD) | Systematic Investment Plan (SIP) |
|---|---|---|
| Rate of Return | The SIP returns are market-linked and may vary depending on the type of fund and the fund performance. However, the returns of a SIP are usually good when invested for a longer tenure. | The return rate of an RD is fixed due to its Fixed Interest Rate. So, there is no effect of market volatility on this investment. |
| Investment Scheme | In a RD scheme, you will have to invest in a deposit plan that will give you fixed rate of returns. You can also opt for flexible recurring deposit scheme if you are looking for more flexibility. | In a SIP for mutual funds, you can choose between debt or equity type of funds depending on your risk capability. |
| Investment Type | In a Recurring deposit scheme, the investor has to deposit a fixed amount every month. | Systematic Investment Plan is a way to put your money on mutual funds. Investment can be done on a periodic Basis - daily, weekly, monthly or quarterly. |
| Liquidity | To Cancel SIP, the investors can simply close their investment and withdraw their money without any penal charges. | In the case of an RD, the premature withdrawal or closure of the investment will cause penalty charges. |
| Taxation | Recurring Deposit amount or the interest earned on it are not exempted from tax. | SIP investments and returns are exempted from tax only when invested on Equity Linked Savings Scheme (ELSS) funds. |
| Volatility | Being market-linked, the SIP returns are volatile and may vary from fund to fund. | The RD returns are fixed and thus it is not a volatile investment. |
| Risk Factor | The risk factor is almost null in an RD investment as the returns are fixed. It is one of the safest investment. | The risk in SIP is higher than that in an RD, as SIP returns depend on stock market and Asset Allocation. |
| Investment Goal | Recurring Deposits usually serve short-term savings goal and do not help in long-term wealth growth. | SIPs can help in all kinds of investments goals, whether short- or long –term, depending on the frequency of investment, funds chosen and other factors. |
| Installment Frequency | Recurring Deposit usually come with monthly instalments | SIPs offer flexible instalment plans of daily, weekly, monthly, quarterly etc. |
Evaluation: Returns of SIP Vs RD
Which is a better investment option- SIP vs RD? The answer to this question may vary from person to person depending on their personal needs. As you know, the SIP returns are variable while the RD returns are fixed, let’s see how much the investment grows if one invests INR 1,000 in both an RD and a SIP for 1 year (12 months).
RD Return Calculator
The RD interest rate may vary at every Bank, but generally, the interest rate ranges from 7% to 9% p.a. Assuming the interest rate to be 8%, let’s analyse the growth in an RD investment of INR 1,000 monthly for 12 months.
SIP Return Calculator
Assuming the SIP interest rate to be 12%, let’s monitor how your SIP grows if you invest INR 1000 monthly for 1 year through the Power of Compounding.
In conclusion, here are some final tips for investors.
- If you are a risk-averse investor, RD or Recurring Deposit is a better option. The RD interest rate and returns are capped beforehand and are usually not very high, may vary from 7-9% p.a.
- If you wish to take a little risk, SIP is one of the best investment options for long-term investment. As per the analysis, SIPs offer good returns and the interest rates are usually higher, exceeding to 15% p.a. in some cases.
- When investing for 5 years, RD is a safer option for investors who are looking for fixed returns.
- However, when investing for a longer duration (more than 5 years) for a certain financial goal, SIP offers good returns and the money growth is much higher.
“Investing in equity via SIP is like planting a tree, one has to be patient to avail the fruits.”
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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