Mumbai, January 18, 2019: Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited, and investment manager to Aditya Birla Sun Life Mutual Fund (“ABSLMF”), announces the launch of Aditya Birla Sun Life Bal Bhavishya Yojna, an open-ended fund towards securing a child’s future. The fund has a lock-in period of minimum five years or till the child turns 18, whichever is earlier.
The fund aims to help investors meet the future financial requirements for a child, like expenditure incurred towards higher education, career goals, marriage, for which the investment horizon would be over a longer period. The idea is to encourage a disciplined long term approach towards investment, particularly as the corpus is to be used for a child’s future needs.
Commenting on the launch, A. Balasubramanian, CEO, Aditya Birla Sun Life AMC, said: “Considering rising costs of many future needs such as education, medical, lifestyle changes, it makes it imperative to start financial planning early on. Especially when it comes to children, as parents or guardians we want to give them the best and securing their future is predominantly the most important goal for any parent. Aditya Birla Sun Life Bal Bhavishya Yojna is a scheme that can help parents invest for their child’s future financial needs, and nurture their dreams. Instead of having to rely on borrowings or loans or dipping into one’s day to day income, it is always better to start investing early for a child’s future.”
The fund offers two investment plans – Wealth and Savings. Under the Wealth Plan, up to 65%-100% of the invested amount would be allocated in Equity and Equity related instruments and the rest in fixed income securities and units issued by REITS and InvITs, whereas the Savings Plan would see up to 75%-90% of the invested amount being allocated in debt and money market securities, with the balance in equities and units issued by REITS and InvITs.
The fund will be managed by Mr. Ajay Garg and Mr. Pranay Sinha. Investments can be made only in the name of a minor who is less than 18 years, at the time of investing. The minor would be represented by his/her parent or legal guardian, till he or she becomes a major. The fund comes with a unique proposition where entities other than parents can invest for the beneficiary i.e. minor. These entities can be grandparents, near relatives or non-individuals such as trusts & corporates. Any investment from a non-specified relative shall be treated as a Gift to the Minor child.
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