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SIP – Where Company Invests With You

  8/8/23 6:50 AM

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Ramesh a 24 year old engineer lives with his family in Mumbai. He is a well-educated and considers his father to be his guru when it comes to financial matters. His father has worked and has saved all his life. His savings were predominantly invested in fixed deposits (FDs), recurring deposits (RDs) and traditional insurance plans. Ramesh, has picked up the investment habit from his family and continues to invest in recurring deposits. He meets his colleague Sameer who is investing in SIP. That’s when Ramesh thought – why is Sameer investing in SIPs?

Systematic Investment Plan (SIP) is nothing but some amount of money invested every month into funds. SIPs bring in an investment discipline. SIPs help to achieve financial goals by investing small sums of money on a monthly basis that eventually leads to accumulating wealth so that you reach your goals.

Sameer had started investing in the new age investment plan i.e. Edelweiss Tokio Life Wealth Plus. Ramesh was keen to know the reason behind Sameer selecting to invest in this plan? So he did a little research on this this plan. What he found was that Edelweiss Tokio Life Wealth Plus was a ULIP which actually changed the face of ULIP’s. It’s a plan where the policyholder has to invested regularly and his money will be further invested by the company. This plan has a lock-in period of 5 years so it automatically instills a habit of regular investment in the investors mind. So Sameer was organized and systematic when it came to savings. What Ramesh also found out was that Sameer could invest as per his risk appetite and he could switch between funds whenever he felt it necessary. Sameer also got a life cover because ULIPs are life insurance products.

Apart from all of these above benefits, there was something more that astonished Ramesh. Sameer invested in a plan where the company also invested with him. Edelweiss Tokio Life Wealth Plus provided its customers with premium boosters at regular intervals. The additional allocation was in an order 1%,3%, 5% and 7%. For the first five years, the company would invests 1% of the premium in Sameer’s plan, from the 6th to the 10th year it would invest 3%, for the next 5 years i.e. 11-15years it would invest 5%, followed by 7% for the 16-20th year. In this way Sameer would not only reap market benefits he would also get some additional amount from the company.

Ramesh was impressed with Edelweiss Tokio Life Wealth Plus. He changed his mind and immediately invested in Edelweiss Tokio Life Wealth Plus to get maximum returns on his investments.


Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.

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