Dear Readers,
RichVik, in association with Aditya Birla Sun Life Mutual Fund, presents the ‘Bal Bhavishya Yojna’, where your fund grows with the inflation-beating returns and helps your child’s dream turn into a reality!
Let’s ask our self that “Are we saving enough for our child’s Education?”
Your child’s dream are precious.
One day they wish to be astronauts; the next day they want to be doctors. There are no limits to a child’s imagination. As parents too, you hope to give full reign to their dreams. But, have you also factored in their reality?
Are your old savings methods enough to match up the space? Here is the quick analysis:
| Sr No | Scheme Name | Returns |
| 1 | Sukanya Samridhi Scheme | 8.5 % |
| 2 | Fixed Deposit (FD) | 6.85 % |
| 3 | National Savings Certificate (NSC) | 8 % |
| 4 | Recurring Deposit (RD) | 6.85% |
| 5 | PPF | 8 % |
| 6 | Kisan Vikas Patra (KVP) | 7.7% |
Do you think these schemes can compete against the swelling cost of education?
Can you carry the weight of their dreams?
With a rise in career avenues, more candidates are vying for the same seats.
Recent data from 2008 to 2018 shows that the no of applicants for –
- IITs have gone up from 1.78 lakhs to 12 lakhs
- Medical entrance exams have gone up from 2.3 lakhs to 12 lakhs
- CAT exams have gone up from 96k to 2.31 lakhs
Well, the cost of Education is rising by leaps and bounds.
In the last 10 years alone, education fees have risen by –
- 150% for school and tution.
- 175% for private schools.
- 96% for technical courses.
And for high in-demand degrees, fees have drastically inflated –
- By 10 times in the past 15 years, for an MBA from top-ranking institutes
- From Rs 90,000/- in 2016 to Rs 2 Lakhs in 2018 for an under-graduate degree from IITs
- From Rs 50 Lakhs to Rs 1 – 2 Crores in the past 15 years for pursuing medicine.
It doesn’t end here. Fees is just one aspect; you’ll also have to account for:
- Possible inflations in tuition fees
- Day – to – day expenditures
- Exchange rate fluctuations for higher studies abroad
- Expenses related to international travel and accommodations
Source : The Value of Education Learning for Life, published in 2015 by HSBC Holdings Plc.
Now, do you think that the above avenues are adequate? OF COURSE NOT!
Is there a solution? Yes, EQUITY is a better avenue!
Historically, equities have proven the ability to beat inflation and generate wealth for its investors {CAGR Returns (%)}
- 15.00% in 20 years
- 14.57% in 15 years
- 15.73% in 10 years
- 12.79% in 5 years
S&P BSE SENSEX – TRI
Introducing a scheme that can generate inflation-beating returns & help your child’s dream turn into a reality:
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)
NFO Open Date : January 22, 2019 | NFO Close Date : February 05, 2019
The scheme offers 2 options based on your risk profile,
- Wealth Plan – (Suitable for Aggressive Investors)
The primary investment objective of this Plan is to seek generation of capital appreciation by creating a portfolio that is predominantly investing in equity & equity related securities and debt and money market instruments.
- Savings Plan – (Suitable for Conservative Investors)
The primary investment objective of this Plan is to generate income and capital appreciation by predominantly investing in a diversified portfolio of debt & money market securities along with equity and equity related instruments.
WHY ADITYA BIRLA SUN LIFE BAL BHAVISHYA YOJNA?
- Multiple Plan Investment Facility:
It provides you with the choice of investing in both Wealth and Savings Plans at the time of initial investments, subject to lock-in period.
- Inter Scheme Switching Option:
This scheme allows you to switch from Wealth to Savings Plan or vice-versa.
- Smart Withdrawal Plan (SWP):
Its fixed payment option allows you to receive income at fixed intervals, subject to lock-in period.
- Systematic Investment Plan (SIP):
This facility allows you to invest a particular amount periodically.
- Systematic Transfer Plan (STP):
This facility allows you to transfer lump sum money to other schemes with the potential for higher growth through equities, subject to lock-in period.
We, at RichVik, recommend you to invest in the fund for a long term period and get the dreams and wishes of your child into a reality!
To know more on investments in Aditya Birla Sun Life Bal Bhavishya Yojna, feel free to contact us.