While I was working with my father, every month he would pay me Rs.5,000 as a salary but with a condition to invest it somewhere. When I asked him why I need to start investing at a such young age he replied “You will always feel it’s not required until you reach your retirement with minimal savings.”, This is a common investor problem, either people invest too less or too late.
While researching for the best instrument in the market, I evaluated various instruments such as Fixed deposits, Public Provident Fund, Guilt Fund, Shares, debentures and Mutual Funds.
I choose Mutual funds due to the following reasons: -
- It is the only instrument which provides you with a bouquet which can fulfil the investor’s diverse requirements.
- In mutual fund, an investor can make a portfolio consisting of short-term, medium and long-term funds.
- An investor can also opt for the preferred systematic methods of investing and withdrawal, each serving a different purpose. These methods are Systematic investment plan (SIP), systematic transfer plan (STP) and systematic withdrawal plan (SWP).
- Mutual fund caters to the needs of aggressive, moderate and conservative investors.
How Aditya Birla Group Helped me achieve my financial Goal?
My financial aspiration is to make a portfolio which can provide me the flexibility to invest in high return funds such as equity funds that are growth oriented. To achieve this objective, I invested in a Systematic Investment Plan (SIP) for Rs.2,500 Per month in Aditya Birla Sun Life Equity Advantage Fun Growth (Erstwhile Aditya Birla Sun life Advantage). The Fund has 96.26% investment in Indian stocks of which 53.01% is in large cap stocks, 33.65% is in mid cap stocks, 8.74% in small cap stocks. As on 9th July, 2019, a SIP for 1,000 for a period of 5 years is worth Rs. 71654 resulting in annualised return of 7.04% and absolute return of 19.42%. My takeaway from this investment would be that I was able to understand and learn about mutual funds with an investment of only Rs.2,500 Per month.
