Launch of Aditya Birla Sun Life Bal Bhavishya Yojna

Aditya Birla Sun Life Bal Bhavishya Yojna, an open ended Fund for Children having a lock-in for atleast 5 years or till the child attain age of Maturity.  The New Fund Offer will open for subscription on 22nd January, 2019 and will close for subscription on 5th Feb 2019.

All Parents have High Aspirations for their Children. But if they do not plan properly, then parents may have to compromise on other important financial objectives to meet those aspirations. But what is even more painful to parents is, when they are not able to fulfil their aspirations due to paucity of funds. Both the situations are not good for parents and therefore, we believe that financial planning, from an early stage, is critically important in meeting the aspirations one have for their children.

The consistent rising cost of education due to inflation is beyond one’s control. Starting from play school to higher education and other expenses are consistently becoming more expensive. Thus, in order to help investors meet their child’s higher education/other expenses for which investment horizon would be typically long term, we are pleased to launch Aditya Birla Sun Life Bal Bhavishya Yojna – an Open Ended Fund for Investment for Children having a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier).

The fund comes with a Unique Proposition where other than Parents it can be Gifted to the child to secure his/her future financially by donors like Grandparent, Guardian, Relative, Non Individual.

Salient features of the NFO:

v  The investments can be made only in the name of minors (<18 years at the time of investment)
v  Plans to cater your Child’s Short term & Long term goals – Wealth Plan and Savings Plan
v  Wealth Plan – Focused Multi-cap oriented Diversified portfolio of quality companies across sectors and market cap             
v  Savings Plan – Accrual focussed strategy with exposure to high quality Corporate bonds coupled with potential of capital appreciation thru marginal Equity exposure [10-25%]
v  Multiple Plan Investment Facility – choice of investing in both Wealth and Savings plan at the time of initial investments
v  Intra-scheme switching option – allows you to switch from Wealth to Savings plan or vice versa as per your requirements
v  Smart Withdrawal Plan – fixed payment option allows you to receive income at fixed intervals, subject to lock-in period
v  Systematic Investment Plan (SIP)

What’s the bigger picture?

The MBA fee in top institutes has risen from Rs. 5.5 lacs in 2008-09 to Rs. 22 lacs in 2018-19, a hike of 15% per annum.

A look at what MBA course fee could cost in few colleges 20 years from now at an inflation rate of 10%

Starting today, you can make a difference to your child’s dreams. The earlier you start investing, the better is your opportunity to grow wealth. So that by the time your child turns 18 years of age, you too can feel light about securing their future.

 Note: This calculation is based on assumed rate of returns and it is meant for illustration purpose only.

Author: Midas Finserve

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