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Evaluating Performance

When you invest for the long-term, remember to check your fund’s performance at least once a year…

I want to invest Rs 1,000 every month in HDFC Top 200 for 30 years for my retirement. Is it a good move and advisable?- Simran Ahuja

Investing regularly and systematically is the right approach to achieve long-term financial goals such as retirement. For instance, your investment of Rs 1,000 a year will swell to Rs 35 lakh if it earns an annualised 12 per cent return or rs 70 lakh if it earns 15 per cent annualised returns. HDFC Top 200 is a highly rated, top performing large- and mid-cap fund which is amongst the best in the category. This fund invests in stocks drawn from the companies in the BSE 200 Index as well as the 200 largest capitalised companies in India. With equity exposure up to 90 per cent, the fund manages to achieve capital appreciation over time. It is a wise move to invest regularly in this fund to build a retirement corpus 30 years from now. However, you should remember that a fund that performs well today need not do so a few years later. You should review the way your investments shape up at least once a year by tracking its performance and assessing its progress towards your financial goal.



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