Every individual should have some financial goals. Saving money by depositing it in savings accounts or recurring accounts, or depositing lump sums in Fixed Deposits does not cut it anymore. These methods of savings have become obsolete for the aspiring investor with glorious dreams for a prosperous future due to the skyrocketing inflation rates.
Mutual funds have become the perfect investment opportunity for those who like to dream big. MF investments can not only help you save, but also create wealth that will see you through the trying days of price hikes. However, not all mutual funds and fund houses were created alike. Although you might have come across some of the most lucrative MF offers in your lifetime, how many of them could deliver what they promised? Most importantly, are you sure that any MF you pick can protect your money efficiently?
What are the Aditya Birla Sun Life Mutual Fund and CSIP?
The Aditya Birla Sun Life Mutual Fund (ABSLMF) is a venture of Aditya Birla Capital. It now offers a Systematic Investment Plan (SIP). SIP is an instrument of investment in the mutual funds that allows the investor to deposit small fixed amounts each month for a fixed period. Earlier, Aditya Birla Capital offered SIP with equity-oriented schemes only. According to the new updates, the investors can now pick the different debt schemes where they would want to invest via SIP. According to reports, ABSLMF will now offer the Century SIP (CSIP) scheme with a life cover of up to Rs. 50 lakhs without any additional cost. The investor should now get the benefit of approximately 100-times the instalment they are paying towards the CSIP. The live cover is provided till the complete tenure of investment or up until the investor turns 60.
What should you remember about the CSIP from Aditya Birla Capital?
The only requirement is that the investors have to regularly invest for the first three years. If they redeem the investment and returns after the first three years, the life insurance cover will stop. It is ideal for young investors, who might be thinking of getting life insurance and investing money in the market to meet future financial goals. The scheme calls out to every investor between the ages of 18 and 51 to invest in the ABSLMF.
Investors between these ages qualify to opt for the insurance cover along with the CSIP. Unlike other life insurance or health insurance schemes, the CSIP scheme does not require the investor to undergo medical tests before investment.
The CSIP provides life insurance cover after you discontinue investing
The value of the life cover depends directly on the amount of investment and the investor’s continuity. For the first year, the life cover keeps increasing by a factor of 10 (10-times) of the monthly SIP amount. The life cover increases 50 times the CSIP amount for the second year and 100 times during the third. Right now, the cover has a ceiling of Rs. 50 lakhs for all CSIP investor.
In case the investor chooses not to redeem the amount but discontinues the CSIP after the first three years, he or she can enjoy a life cover equivalent to the unit value his or her MF accumulates at the beginning of each year. The ceiling on the life cover, in that case, is 100 times the monthly instalment. In short, the insurance cover is still available to the investor long after he or she discontinues the investment after the initial 3 years.
Why should you work with a fund house?
Investing in mutual funds via SIP is not only easy but also completely safe. The flexibility of investing via the ABSLMF makes it extremely lucrative for the young investors as well as the middle-aged veterans, who want to secure their finances. It is a safe and secure way of making your wealth grow with little to no effort. The CSIP expands the features of the regular SIPs people opt for during mutual fund investments.
Working with a reputed fund house not only provides added security, but it also offers the aid of trained finance and investment experts. These people are dedicated market analysts, who can guide you towards smart investment choices. If there is some other mutual fund product you are interested in besides CSIP, the investment expert should be able to guide you towards the best fitting investment plan that complements the returns of the ABSLMF CSIP scheme.
What are some mutual funds from Aditya Birla Capital that provide CSIP options?
Some of the most popular Aditya Birla Sun Life Mutual Funds with CSIP option include the following –
i.Aditya Birla Sun Life Equity Fund
It is an open-ended equity scheme that invests across large cap, small cap and mid cap stocks. It bears moderately high investment risk. It can enable the investor to achieve long-term financial goals with 90% of the investments in equity and 10% in debt.
ii.Aditya Birla Sun Life Hybrid ’95 Fund
This is another fund with CSIP facilities. It was formerly known as the Aditya Birla Sun Life Balanced ’95 Fund. It is an open-ended hybrid scheme that invests a majority of its assets in equity and related instruments. It is also perfect for long-term investment.
iii.Aditya Birla Sun Life Frontline Equity Fund
If you want long-term capital gain, then the Aditya Birla Sun Life Frontline Equity Fund is the best for you. It has allocated its assets across a variety of industries. It is an aggressively growing fund that repeatedly outperforms its Nifty 50 benchmark index.
iv.Aditya Birla Sun Life Medium Term Plan
This is an open-ended debt plan with a Macaulay duration between 3 and 4 years. This aggressively growing fund is perfect for those with high-risk appetite. The CSIP scheme allows the investor to invest as less as Rs. 500 per month to generate regular income by the end of the term.
v.Aditya Birla Sun Life Credit Risk Fund
It was earlier known as the Aditya Birla Sun Life Corporate Bond Fund. It is a debt scheme that invests in AA and other corporate bonds. It generates returns by investing in a portfolio of corporate debt securities. It has medium to short term maturities. While it does not guarantee returns, it is perfect if you are looking for short-term investments at high risks with potential for significantly higher returns.
There are several Mutual Funds for investors of every type in an established fund house. All the mutual funds we have mentioned above now support the CSIP scheme that offers 100x insurance cover or up to Rs. 50 lacs insurance cover for every investor, who follows through. The CSIP scheme has made it incredibly easy for millennial investors and novices to keep aside small amounts that can make their future dreams of prosperity come true.