Aditya Birla SIP (Systematic Investment Plan) is one of the preferable routes to enter the Mutual Fund market. It offers various plans to the investor to accumulate significant wealth in long-term planning. An investor may start it earlier at a young age and generate a substantial sum in 10 to 20 years. Aditya Birla SIP is an excellent and efficient financial tool that allows investors to invest a specific amount in a stipulated time.Read more
Guaranteed Tax SavingsUnder sec 80C & 10(10D)^
₹1 CroreInvest ₹10k Per Month*
Zero LTCG TaxUnlike 10% in Mutual Funds
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.
|Aditya Birla Sun Life Funds||Risk||Returns (1 year)||Category||Fund Size|
|Asset Allocator FoF Fund||High||2.90%||Other||Rs. 159 cr|
|Balanced Advantage Fund||Very High||5.30%||Hybrid||Rs. 6,707 cr|
|Banking & PSU Debt Fund||Moderate||4.30%||Debt||Rs. 8,030 cr|
|Corporate Bond Fund||Moderate||4.60%||Debt||Rs. 12,603 cr|
|Dynamic Bond Retail Fund||Moderate||7.10%||Debt||Rs. 1,779 cr|
|Financial Planning FoF Conservative Plan Fund||Moderately High||5.00%||Other||Rs. 14 cr|
|Floating Rate Direct Fund||Low to Moderate||5.20%||Debt||Rs. 13,015 cr|
|Income Fund||Moderate||3.50%||Debt||Rs. 1,515 cr|
|Low Duration Fund||Moderate||5.30%||Debt||Rs. 11,774 cr|
|Short Term Direct Fund||Moderate||5.10%||Debt||Rs. 5,007 cr|
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.
Let us discuss some benefits of Aditya Birla SIP, which an investor may avail of while purchasing a plan.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
It is imperative to contact the financial institution in order to fill out the requisite forms and complete the documentation for the KYC.
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.
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.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^10(10D) Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
Expected Rate of Return (Yearly)
01 Dec 2023AMC SIP stands for Asset Management Company Systematic
10 Oct 2023Extended Internal Rate of Return (XIRR) is a key metric used in
26 Sep 2023A Systematic Withdrawal Plan (SWP) Calculator is a financial
18 Sep 2023XIRR, or Extended Internal Rate of Return, is a powerful
29 Aug 2023Index Fund SIP (Systematic Investment Plan) Investment has