A Father’s Day SIPrise!

The bond between a Father and his child knows no bounds. Since, parents constantly focus on providing for us, they often overlook planning for their own post-retirement plans. While we can never repay them for all that they do for us, the sentiment to give back and express our gratitude grows as we gain financial independence.

So, this Father’s Day, why not reciprocate the love and caring by presenting a gift that could shield our parents’ future?

Choosing the Perfect Gift

With that in mind, let’s ask the main question: What is a gift that mimics the dependable and sustained support we associate with our parents?

Let’s see how two different individuals approach the situation

Prima facie, while Radha’s choice of gift seems less glamorous than that of Geeta’s, this gift can help towards providing her parents some of the most important things in their life*.

*While one cannot invest in MF units in the name of another person (except their Children), in this example, Radha, mentally allocates this monthly investment for the welfare of her father.

Most Important Things for your parents in their retired life

• Maintain standard of living
• Cope with unexpected expenses
• A sense of financial security

Thus, between plucking a flower or sowing a garden, Radha chooses the wiser option of sowing a garden, in order to give back the love to her parents.

Seek Professional Advice

As you embark on this noble investment journey, it would be wise to take professional guidance, in terms of:

• Goal setting
• Where to invest?
• How much to invest periodically?
• Attaining knowledge

Even Small Amounts matter

Over the long term, even a small amount invested periodically can potentially amount to something substantial. Hence, consistency is the key to creating wealth in the long term.

A real case of consistency paying off:

An SIP of ₹10,000 per month in HDFC Balanced Advantage Fund started on April 30, 2012 would have grown 2.5 times to ₹30.3 lakh as on April 30, 2024!

^Assuming ₹10,000 invested systematically on the first Business Day of every month over a period of time. *Total amount invested over the period of 12 years ending April 30, 2024. **CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return) for Regular Plan - Growth Option. The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. For complete performance in SEBI prescribed format, refer page 6

Past performance may or may not be sustained in future and is not a guarantee of any future returns.

Bracing for the Role Reversal

Your professional life begins in your early to mid-20s. Though it may feel like your income is supplementary to that of your parents, yet it is noteworthy that maintaining their current earning capacity will be difficult post their retirement. Hence, it is important to realize that with time, roles will reverse, and your income will be critical to ensure continuity of income for your parents.

So, this Father’s Day, let’s treat him special!

HDFC Balanced Advantage Fund

SIP Performance - Regular Plan - Growth Option

SIP since inception* of ₹10,000 invested systematically on the first business day of every month (total investment ₹36.40 lakh) in HDFC Balanced Advantage Fund would have grown to ~ ₹14.46 crore by May 31, 2024 (refer below table).

*Inception Date: February 01, 1994. The scheme is managed by Gopal Agrawal, Srinivasan Ramamurthy (Equity Assets) & Anil Bamboli (Debt Assets) from July 29, 2022 & Arun Agarwal (Arbitrage Assets) from October 6, 2022 & Nirman Morakhia (Arbitrage Assets) from February 15, 2023. # NIFTY 50 Hybrid Composite debt 50:50 Index. ## NIFTY 50 (Total Returns Index). $$ All Distributions declared prior to the splitting of the Scheme into IDCW & Growth Options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV (ex-distribution NAV). As NIFTY 50 TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI values from February 1, 1994 to June 29, 1999 and TRI values since June 30, 1999. Scheme performance may not strictly be comparable with that of its Additional Benchmark in view of balanced nature of the scheme where a portion of scheme’s investments are made in debt instruments.

Common Notes for all the above tables: Past performance may or may not be sustained in future and is not a guarantee of any future returns. Returns greater than 1 year period are compounded annualized (CAGR). Load is not taken into consideration for computation of performance. Different plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses / commission charged in the Regular Plan. N.A.: Not Available.

Note: Effective close of business hours of June 1, 2018, HDFC Prudence Fund merged with HDFC Growth Fund (HDFC Balanced Advantage Fund after changes in fundamental attributes). As the portfolio characteristics and the broad investment strategy of HDFC Balanced Advantage Fund is similar to that of erstwhile HDFC Prudence Fund, the track record (i.e. since inception date, dividend history, etc.) and past performance of erstwhile HDFC Prudence Fund has been considered, in line with SEBI circular on Performance disclosure post consolidation/ merger of scheme dated April 12, 2018.

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