Birla Sun Life MIP II-Savings 5 Plan
Birla Sun Life MIP II-Savings 5 Plan: a good second income option Outshines traditional options like FDs and Post Office MIS by far
Tweet-- Birla Sun Life MIP II-Savings 5 plan, an open-ended income scheme, has been a strong performer in the Monthly Income Plan category. Since its launch, the scheme has provided more tax efficient monthly income than conventional options such as bank fixed deposits and post office monthly income scheme. The scheme has delivered on the dual objectives of providing investors tax efficient regular income as also providing capital appreciation. The fund generated a CAGR return of 12.5% over a 3 year period against the benchmark Crisil MIP Blended Index returns of 8.4%, as on 31st July. Infact the fund has never skipped a monthly dividend since its inception.
If an investor had invested Rs 1 lakh in the scheme on the day of its launch on May 22, 2004, he/she would have earned an average dividend of Rs 540 per month while the sum Rs1 lakh would have grown to Rs 1.12 lakh by 31st July 2009. Investment into this fund provides varied benefits like decent returns, lesser tax outgo and lower penalty for premature withdrawal as compared to conventional investment options, all of which result into higher income in investor’s hands.
This fund addresses the needs of investors seeking regular income based on a portfolio consisting of both debt and equity. The debt portfolio of the fund invests in highly rated bonds issued by the Government of India, PSUs and other reputed Indian companies, which are considered safe. The equity portion is limited to 0 to 10% and is invested in conservative stocks and hence the portfolio is relatively stable.
Mr. A. Balasubramanian, CEO and CIO, BSLMF said, “The concept of Monthly Income Plan (MIP) originates from the requirement of providing higher returns to investors looking for regular income in the form of dividends. The MIP relies on small dosages of equities in a predominantly debt portfolio to provide the return kicker”.
The fund holds a lot of potential for investors as it offers stable returns with the additional incentive of higher returns due to the equity portion. There are many investors, like those seeking second income or post retirement income, who want a steady income stream. The fund suits the need of such investors. The fund has received 5 star rating from Value Research and CPR 1 from Crisil, placing it amongst the best performing fund in its category, as on 31st July 2009.
Notes to Editor
Birla Sun Life Asset Management Company
Established in 1994, Birla Sun Life Asset Management Company (BSLAMC) is a joint venture between Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada.
BSLAMC is amongst the top 5 asset management companies in India with an average asset under management of Rs 57,331 crores as on July 31, 2009. An impressive mix of reach through 115 branches, full range of product offerings across equity, debt, balanced & structured asset classes and strong investment performance has helped the Company enjoy trust of over 2.2 Million investors. Known for its consistent performance, BSLAMC has received recognition from various institutes of international repute like the CRISIL, Asian investor Magazine, ICRA and Lipper. It is the only fund house in India to have won the coveted “Mutual Fund House of the Year” from CNBC TV 18 Crisil twice in a row.
About Aditya Birla Group
A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. The group operates in 25 countries across six continents – truly India's first multinational corporation.
Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, securities based lending, insurance broking, private equity and retail broking. In FY 2008-09, the consolidated revenues of ABFSG from these businesses crossed Rs. 4763 crores, registering a growth rate of 36%
About Sun Life Financial Inc.:
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide. As of December 31, 2008, the Sun Life Financial group of companies had total assets under management of $381 billion globally.
Dividends mentioned above were on a face value of Rs. 10/unit. After payment of dividend, NAV will fall to the extent of the payout and statutory levy, if any. Declaration of dividend is subject to availability of distributable surplus. Past performance is no guarantee of future results.
Crisil Ranking Source: Crisil Fund Services, CRISIL Limited
Value Research Ranking Source: www.valueresearch.com