Aditya Birla SIP

The period or frequency of making an investment could be decided by the investor. Therefore, the investor may select the prescribed interval in order to pay the premium monthly, quarterly, or annually. Howsoever, the investor must be consistent and disciplined while making the investment at a stipulated time. Further, the investor must approach the proper scheme of Aditya Birla SIP plans to beat inflation and build a considerable amount in long-term planning.

List of Aditya Birla Mutual Funds in India

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Let us discuss some benefits of Aditya Birla SIP, which an investor may avail of while purchasing a plan.

1. Choice

   It is at the discretion of the investor how much he wishes to invest in a month or quarter, or year. There are multiple varieties of plans which Aditya Birla SIP offers to investors. The amount of each plan varies from a sum of low to a high premium. Hence, the investor may consider starting with INR 500 per month and can conveniently watch the growth of the SIP.

2. Rupee Cost Averaging

   Like other SIP investment plans, Aditya Birla SIP also offers investors to take advantage of rupee cost averaging. With this benefit, an investor may buy as many units as he wishes if the market is low, while he may choose to buy less if the market is high. It may be called the inherent feature of SIP, where an investor gets an opportunity to buy more units in order to reduce the cost of investment and gain high returns.

3. Flexibility

   The Aditya Birla SIP offers its investors the flexibility of choice, investments, and withdrawal. Unlike Public Provident Fund (PPF) or Unit Linked Insurance Plan (ULIP), the Aditya Birla SIP has no fixed tenure or a lock-in period. Therefore, the investors may, if they deem fit, make the withdrawal of either partial or full investment funds from the SIP plan without incurring any losses. The investment amount is also flexible. As per their income, the investors may start with a low premium and increase it gradually to accumulate significant wealth. Hence, the Aditya Birla SIP makes wealth creation easier for investors.

4. Significant Return

   The Aditya Birla SIP returns are significant compared to other traditional fixed deposit plans. In addition, the return on Aditya Birla SIP investment helps the investor beat the inflation rate by providing double Aditya Birla SIP return compared to conventional plans.

5. Power of Compounding

   Under Aditya Birla SIP plans, an investor may realize the power of compounding by investing on a monthly, quarterly, or annual basis. Unlike a one-time investment plan, a small or significant amount invested under the Aditya Birla SIP plan fetches a better return on the investment. The returns grow consistently as the investor invests the premium continuously. For example, an investor may accumulate INR 1 crore in 15 years if he consistently invests INR 15,000 per month at an annual interest of 15 percent. An SIP calculator online tool is very useful in getting the estimate value of SIP returns that can be earned.

Let us understand how a new customer or investor may start investing in SIP in four easy steps.

1. Visit SIP Tool

   In the first step, an investor is required to select the SIP amount he wishes to invest. The amount varies from scheme to scheme. Hence, it is first necessary to choose one category of SIP from other Aditya Birla SIP categories.

2. Scheme

   A category of Aditya Birla SIP comprises different types of schemes. Therefore, an investor must choose the best scheme he deems fit to fulfill his financial goal. Thus, before investing in the SIP plan, the investor must identify his investment potential and economic purpose for wealth creation.

3. Application form

   An investor can then fill out the application form either online or offline. The form may be filled out offline by downloading it from the Aditya Birla capital website.

4. Submission of Form

   In the fourth step, an investor is required to make submission of the application form to the nearest branch location to start the SIP.

However, an investor must keep the following things in mind before planning to invest in Aditya Birla SIP. 

1. Right Scheme

   The investor must select a suitable scheme for Aditya Birla SIP, which is coherent with his financial goals. In addition, he must compare the scheme with other Aditya Birla SIPs plans since the company offers several different SIP Plans.

2. Financial Institution

   It is imperative to contact the financial institution in order to fill out the requisite forms and complete the documentation for the KYC.

3. Investment

   The investor should start investing after completing his research. He must check for the past year's return on the Aditya Birla SIPs returns and should start investing at an early age.

Conclusion

Individuals make different plans to accumulate significant wealth for retirement or meet financial requirements. However, wealth cannot be created in a day or month. In addition, one can only accumulate substantial wealth in the long term with intelligent planning. Therefore, the investor must plan smartly for the efficient growth of the fund. The Aditya Birla SIP has every means to generate considerable funds in the long run, provided the investor must be consistent in his investment. He must be disciplined in choosing the right category and proper scheme as per his financial goal. The power of compounding is one of the best features of SIP, which can generate INR 10 to 20 crores in the long run and make the investor millionaire or multi-crorepati.

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