MUMBAI:
Aditya Birla Sun Life Mutual Fund (ABSLMF), the mutual fund arm of Aditya Birla Capital Limited and one of the leading mutual fund houses in India, offers SIP (Systematic Investment Plan) with life cover of upto Rs. 50 lakhs at no additional cost with Century SIP (CSIP) facility. Earlier CSIP was offered with specific equity oriented schemes only, but now one can choose to invest in select debt schemes also with the CSIP facility. This allows ABSLMF to offer to its investors’ diversification and balance of asset classes under CSIP. The life cover is available for the entire tenure of the investment or 60 years of age, whichever is earlier.
Through this an investor has the advantage of life cover benefit up to 100 times the monthly CSIP instalment amount or Rs. 50 lakh (whichever is lower) per investor across all schemes/plans/folios of Mutual Fund. CSIP requires an investor to invest regularly for the first 3 years. However, if the investor redeems his investment in the interim (fully/partially) before completion of CSIP tenure, the insurance cover will cease to exist.
Commenting on the CSIP facility, A. Balasubramanian, CEO, Aditya Birla Sun Life AMC Limited said: “The convenience and flexibility provided by an SIP makes it a popular choice among investors for investments in mutual funds. CSIP expands the scope of SIPs. Century SIP requires an investor to invest regularly for the first 3 years. The mandated time horizon helps to develop investment discipline, in turn rewarding the investors in the long run, owing to the compounding effect. We want to encourage our investors to stay invested for the long term as longer time horizon lead to better investment performance. On top of it this is a life cover for the entire tenure of the investment upto 60 yrs of age, at no additional cost”.
“Our last two NFOs of ABSL Bal Bhavishya Yojna and ABSL Retirement Fund reveal that investors understand the importance of long term investing despite a definite lock-in period. In both cases of the total SIP applications, CSIP had a considerable count, a proposition which is a win-win for investors”.
Anyone in the age band of 18 year-51 year is eligible for availing the optional facility of life cover under CSIP. The life cover is based on the continuity and the size of the investor’s monthly contribution through his/her CSIP. The simple formula for the cover is 10-50-100 times. The life cover keeps on increasing for the first three years. In the 1st year it will be 10 times of the monthly CSIP amount, in the 2nd year it will be 50 times the monthly CSIP amount and in the 3rd year it will be 100 times the monthly CSIP amount, subject to a maximum of Rs. 50 lakhs.
The life cover will cease if the CSIP is discontinued before the completion of three years from commencement. Post completion of three years of regular CSIPs, the life cover will continue till the investor is 60-year-old. In case the investor doesn’t redeem but only stops the SIP after 3 years, life cover will be equivalent to the value of units accumulated under CSIP at the start of each policy year, subject to a maximum of 100 times the monthly instalment.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
