Taking Dreams to the Future For private circulation only.
We dream a little every time we see our children. A dream of their grand future. Just like a shining bright star. But Dreams need MORE. They need ACTION. They need some CARE & NURTURING. Before they become REALITY.
As parents, we go great lengths for our child s future Sacrificing our own pursuits is a part and parcel of it Isn t every little sacrifice worth a thousand joys?
After all, we want to ensure our kids success Indian parents labour over Children's homework the most 12 hours per week, more than any other country* They dream for careers like Medicine, Engineering, MBA for their children** They prefer a Successful Career for their children most along with overall health and happiness** What parents want their children to become What parents want for children Medicine 14 Sucessful Career 51 Business 22 Be happy 49 Engineering 23 Lead a healthy lifestyle 33 IT 16 Earn enough to enjoy a comfortable life 22 Others 25 Fulfil their potential 17 *SOURCE:* World Economic Forum via The Varkey Foundation. https://www.statista.com/chart/13838/where-parentshelp-their-kids-with-homework/ ** The Value of Education Learning for life, published in 2015 by HSBC Holdings plc.
But Education Expenses: A drain on families 78% say it s impossible to afford even 1 child s education for an average 1-member working family 65% spend OVER HALF OF THEIR YEARLY INCOME on child s education & extra co-curricular activities SOURCE: tflguide.com, The Value of Education Learning for life, published in 2015 by HSBC Holdings plc
And it continues to get costlier Are we prepared to meet the rising educational costs? School fees, tuition fees & other associated expenses up by 150% in the last 10 years Average Annual Expenditure on private schooling up by 175% in the same period The cost of professional & technical education up by 96% in the last 10 years A child undergoing higher education (under graduation and above) costs 18.3% of total household income in Urban India. Source: ABSLAMC Research
To give an idea The MBA fee in top institutes has risen from Rs. 5.5 lacs in 2008-09 to Rs. 22 lacs in 2018-19, a hike of 15% per annum A look at what MBA course fee could cost in few colleges 20 years from now at an inflation rate of 10% Region MBA Course Current Fees (INR) Inflation (p.a.) Expected Fees (INR) Domestic MBA from top B-schools Premium B School Top Management Institute 22Lacs 40 Lacs 10% 1.48 Cr. 2.69 Cr. International MBA Premium International Business School 52 Lacs 3.49 Cr.
INVESTMENT PER MONTH Saving for MBA Dream of approx. Rs. 1.50 Crore Depending on when you start saving, this is what you would need to save every month to send your child to Top MBA college at the age of 21 years 1,40,000 1,40,000 1,20,000 1,00,000 80,000 60,000 40,000 20,000 15,000 25,000 54,000 0 30 1 year 535 years 1040 years 15 years 45 CHILD S AGE AT THE TIME OF INVESTMENT The assumed investment rate of return is 12% CAGR.
But, 80% of parents have not planned for child education Only 20% of parents surveyed had specific investment demarcated for Child education As a result, increasing aspirations and education costs are funded by borrowings and education loans How parents fund their child s education 59% day to day income* 48% general saving / investments / insurance** 20% specific education savings / investment plan** 28% short term loan or Credit Card** 12% Long term loan** SOURCE: *The Value of Education Learning for life, published in 2015 by HSBC Holdings plc **The Value of Education Learning for life, published in 2018 by HSBC Holdings plc
And parents also mis-calculate the costs 75% Percentage of Parents who fund each of the following education costs Rest is funded by students working or taking loans 72% 66% 60% 60% Fees Education technology expenses Food Transport Academic textbooks PARENTS mostly consider FEES as a savings target. They often forget to account for: 1. Inflation in tuition fees 2. Travel 3. Accommodation 4. Day-to-day expenditure 5. Exchange rate fluctuations if they plan to send the kid abroad Source: The Value of Education Learning for life, published in 2015 by HSBC Holdings plc
Penalty for not being prepared: Parents Sacrifice & Regret PARENTS SACRIFICE 35% Worked Extra Hours 53% Drastically reduced or stopped leisure activities 40% Forfeited metime and/or gave up hobbies 49% Took fewer holidays PARENTS REGRET 61% Wish they started saving for their child s education earlier 35% Worry they don t have financial resources to support their child s education 46% Wish they had done saving more regularly Source: The Value of Education Learning for life, published in 2018 by HSBC Holdings plc
Penalty on our child for not being prepared Not just us, our children pay a PRICE too Burden of Education Loans NPAs in education loans have increased from 5.5% in 2015 to 7.7% in 2017 If a child is unable to pay then his credit history takes a plunge too 800 Outstanding education loans (Rs. Bn) 700 600 500 427 499 550 600 633 682 701 697 400 369 300 200 100 205 286 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 SOURCE: RBI
Can anyone plan for Child s dreams without sacrificing their own? Definitely YES!
From the tiny steps to big strides, raising kids is rewarding but not easy At Aditya Birla Sun Life Mutual Fund, we understand that big dreams need nurturing We help you invest today so that your kids can be carefree tomorrow So there s never a strain on you. Just smiles!
PRESENTING 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)
Aditya Birla Sun Life Bal Bhavishya Yojna An ideal investment solution to help you plan for their children s future Investment in this fund can be planned for children, be it their education, marriage expenses, a decent lifestyle, etc. Investment solution designed to resolve long term education goals for your children A child s secured future is the dream of every parent! Preparing to Fly
Who can Invest? The investments can be made only in the name of minors (<18 years at the time of investment) Unit holder till the time of attaining majority shall be represented by the parent or legal guardian Who can invest? Parent/Guardian Grandparent Relative (Donor) Corporate/Trust/etc. (Donor) Investment Options: SIP: Systematic investment plan to help invest in affordable monthly instalments Lumpsum: Invest a one time amount towards to your child s future goals *Please refer to SID of the scheme for detailed list of eligible investors
Key Features - Caters to your child s education goals Wealth Plan The plan seeks generation of capital appreciation by investing in equity & equity related securities and debt and money market instruments Asset Allocation Equity & Equity related instruments - 65-100% Fixed income securities - 0-35% Units issued by REITs and InvITs- 0-10% Benchmark - S&P BSE 200 TRI Savings Plan The plan seeks income & capital appreciation by investing in a diversified portfolio of debt & money market securities along with equity & equity related instruments Asset Allocation Debt & money market securities - 75-90% Equity & Equity related instruments - 10-25% Units issued by REITs and InvITs- 0-10% Benchmark - Crisil Hybrid 85+15 Conservative Index Plans/Options Regular/Direct, Sub plans: Growth, Dividend Lock-in period: Compulsory Lock-in option (5 years from the date of allotment; or Until the unit holder (being the beneficiary child) attains the age of majority (i.e. completion of 18 years), whichever is earlier *Please refer to SID of the scheme for detailed asset allocation table
Investment Philosophy Equity Multi-cap orientation with a focus on building a Diversified portfolio of quality companies across sectors and market cap Bottom-up investment style focusing on companies selected through fundamental research Quality orientation involves selecting companies run by professional managements backed by strong promoters Stock selection parameters include: Having robust business models Enjoying sustainable competitive advantage Having high return ratios Debt free companies Fixed Income Accrual focused portfolio Discipline of low duration & high credit profile Exposure to high quality corporate bonds No G-Sec play Buy & Hold strategy *Please refer to SID document for details
How Aditya Birla Sun Life Bal Bhavishya Yojna helps? Multiple Plan Investment Facility: It provides you with the choice of investing in both Wealth and Savings plan at the time of initial investments, subject to lock-in period Intra-scheme switching option*: The scheme allows you to switch from Wealth to Savings plan or vice versa as per your requirement Smart Withdrawal Plan (SWP): It s fixed payment option allows you to receive income at fixed intervals, subject to lock-in period *For tax implication, please consult your tax adviser
How Aditya Birla Sun Life Bal Bhavishya Yojna helps? Systematic Investment Plan (SIP): Best for salaried and others who have regular income 1. Regular monthly contributions 2. Benefit from rupee cost averaging and multiple market cycles 3. Instil discipline of investing through SIPs 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
Name of Scheme Aditya Birla Sun Life Bal Bhavishya Yojna Wealth Plan This product is suitable for Investors who are seeking:* Long term capital growth investment in predominantly equity and equity related securities as well as debt and money market instruments Riskometer Aditya Birla Sun Life Bal Bhavishya Yojna Savings Plan Long term capital growth investment in predominantly debt and money market instruments as well as equity & equity related securities *Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Let s nurture their FUTURE & Plan Systematically with 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 Opens: January 22, 2019 NFO Closes: February 05, 2019
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