Factors to Consider Before Investing in HDFC Mutual Funds

When considering mutual fund investments, there are key factors you should think about to make well-informed choices. They are as follows:

• Investment returns

  You must determine how much return you will get by investing in the HDFC Mutual Fund scheme. You can calculate and get an approximation of your returns through the INDMoney HDFC Mutual Fund SIP and Lumpsum calculator to check whether the returns align with your financial plans or not.

• Fund performance

  Evaluate the HDFC Mutual Fund performance of the past 3 to 5 years for the specific mutual fund you are interested in. Consider investing in the HDFC Small Cap Fund, as it has been providing consistent returns for the past 3 years ranging from 31.79% to 33.06%.

• Fund manager experience

  Consider the qualifications and experience of the fund managers who manage the investment of the fund. A skilled manager can enhance your HDFC Mutual Fund returns through active management. Check the investment decisions made by Anil Bamboli, who handles around 24 HDFC MF schemes and has more than 25 years of work experience. 

• AMC performance

  Though there are many Asset Management Companies (AMCs), not everyone has been performing well. Look into the fund house’s reputation and track its past record of managing different mutual funds to ensure they have a solid history of managing funds effectively.

• Expense Ratio

  It is the cost of managing the mutual fund, including the fees of fund managers and operational expenses. Opting for funds with lower expense ratios can maximize your overall profits. This ratio ranges from 0.26% to 1.3% for mutual funds under HDFC AMC.

• Exit load

  It is a fee that you have to pay if you withdraw from a particular HDFC Mutual Fund scheme before a specific time period. Not all mutual funds charge exit loads, so before investing in a mutual fund check their terms and conditions.