Understanding: Birla SL Medium term Plan

Birla SL Medium term Plan 

Earn better Tax Efficient return than Bank Fixed Deposit.

No Equity Allocation | Pure Debt Fund | With Indexation benifit.

Make Your Hard Earn money Work Smartly..!!

Why Birla Sun Life Medium Term Plan?

Scheme is positioned where the majority of the portfolio is intended to be invested in good quality papers. The scheme incorporates adequate safeguards for controlling risks in the portfolio construction process through diversification while taking care not to dilute the returns in the process. The scheme carries out rigorous in-depth analysis of the securities proposed to be invested in to give your investments an edge.

Investment strategy:

The scheme intends to optimise returns by keeping its portfolio duration between 1 year and 5 years.However the scheme is flexible to bring the duration below 1 year depending on the prevailing market conditions. In case of rising interest rate scenario the

duration of the fund may be reduced and holding in money market securities may go up to 100%, where as in a falling interest scenario the holding in medium/long dated securities may be maximised.

Where does the scheme invest?

Apart from Debt instruments, the potential universe of the scheme for investment includes Money Market Instruments such as commercial papers, commercial bills, treasury bills and Government securities having an unexpired maturity up to one year, call or notice

money, certificate of deposit, usance bills, CBLOs and any other like instruments as specified by the Reserve Bank of India from time to time. 

Past Performance (as on 24th June 2016)

1 Year - 9.65% | 2 Year 10.14% | 3 Year 9.95%

(Source: Birla SL Mutual Fund)

Call me For Further Detail.

Mehul Bheda

Certified Financial planner

Investing in your child's future..!!

Investing in your child's future 

The arrival of a child brings a lot of happiness and responsibilities at the same time. In fact, as soon as a child is born, parents start worrying about the future. Whether there will be enough to provide for the child's growing up years, and more importantly, education and marriage. For parents, education is not an expense but an investment that will provide their child good career growth and opportunities.

With the opening up of specialized fields and a surge in the number of students applying for foreign universities, the cost of education has gone up in recent years. The worry of providing for education prompts most parents to invest in financial instruments. But most land up investing in the wrong plans such as public provident fund, long term bank deposits, gold, or life insurance policies.

However, if we factor in inflation, the returns earned are not good enough to reach the desired goals. Therefore, choosing a right investment plan is critical if you want a lump sum closer to your goals and at a higher rate over inflation. Here are five financial strategies that ensure smart investments.

Planning.

The first step is planning; how much is required for the child's school education, higher studies, and wedding. Start early. The sooner you start saving, the longer your investment has time to grow.

Go by systematic monthly investments.

A key tool which allows you to invest regularly, smoothen out market volatility and benefit from power of compounding is systematic monthly investments which could help in building up a sizeable corpus over the years. For instance, take an example of a parent investing Rs 5,000 per month for his newborn for 15 years at the rate of 12 per cent per annum. His investments will grow to Rs 25 lakh in 15 years. On the other hand, a person who starts investing the same sum and at an expected return of 12 per cent for five years will only be able to grow Rs 4 lakh in five years. Such is the power of compounding.

Participate in equities

Historically, equities as an asset class has provided superior risk adjusted returns over a longer time frame and have outperformed all other asset classes. However, a common man finds it difficult to research stocks which could provide him good returns. This is where investments in mutual funds are advisable and are the best way to participate in equities.

Segregate investments

It's best to define and segregate the investment for each goal. You can consult us as Your financial advisor to understand these and chalk out a suitable investment plan. If you are 10 years or more away from your goal, then you can take a greater exposure to equities, but bear in mind that you should not be impacted by short-term fluctuations. As you start nearing your goal, re-align the portfolio accordingly.

Analyse investments periodically

Instead of looking at the end goal, take stock of how far you have come and what changes you need to make to your portfolio.

Call me for Smart Investment Planning.

Mehul Bheda

Certified Financial Planner

9819592326 | mebheda@gmail.com

Source: India Today