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Builds Investment discipline |
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We all know that we need to invest regularly in
order to set aside some amount of our earnings for future needs like buying a
house or car, planning your children's future or planning for your retirement.
Unfortunately most of us end up making sporadic investments which help little
in achieving our financial goals.
Through an SIP, an investor pledges to invest a fixed amount of money on a
monthly basis in a mutual fund scheme for a predetermined time
period. Also SIP provides the investor with the flexibility to
increase the amount of his monthly installment at any time. The investor can
also terminate the SIP at any time before the end of the tenure at no extra
charge (A minimum of 6 monthly installments are however required for any SIP)
Thus in a disciplined manner, you automatically invest a fixed amount every
month for your future needs rather than spending it.
Eg: You can start with investing Rs. 1000/- every month for a period of 3 years
thereby investing Rs. 36000/- in total.
Collecting Rs. 36000/- for investments right away may be difficult considering
your household expenses, but you can always set aside Rs 1000/- every month to
be invested in the scheme of your choice.
Also if you are unsatisfied with the performance of the scheme or for any other
reasons, you can terminate the SIP before the 3 yr duration at no additional
charge. |
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Investment Discipline through SIPs now comes with an added advantage - Life Insurance upto 100 times your SIP installment amount
through Birla Sun Life Century SIP |
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SIP investments are also affordable & convenient. Click here to find out how. |
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| 2. |
Affordable & convenient |
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Affordability |
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Investments do not necessarily mean that one has
to collect a substantial chunk of money to invest. One can start investing as
low as Rs. 500/- through an SIP. This very feature of small monthly
installments makes SIPs light on your wallet and an affordable
investment tool. |
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Convenience in mode of payment |
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When we think monthly installments, we generally
think of one more date to remember apart from the bill payment dates. That's
not the case with an SIP. Birla Sun Life Mutual Fund offers you the convenience
of direct debit of your SIP installments through Electronic Clearing Service
(ECS) facility. Your SIP amount automatically gets debited from your bank
account provided we receive a mandate for the same in your investment
application.
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Convenience in selecting installment dates |
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Birla Sun Life Mutual Fund offers you a choice of
7 dates to choose for your monthly installments. You may choose the 1st, 7th,
10th, 14th, 20th, 21st, or 28th of the month to pay for your SIP installments.
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SIPs have never been so affordable! Now you get life insurance cover of upto
100 times your SIP amount through Birla Sun Life Century SIP. |
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SIP installments also help compounding your wealth. Click here to know more. |
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| 3. |
Helps in compounding your wealth |
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Getting rich is simpler than you think, here's a simple formula to
get rich: |
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Invest Regularly |
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Systematic investing has a compounding effect on
your investments. In the long term, an investment as low as Rs 1000/- per month
swells up into a huge corpus.
This can be best explained by the following graph. The graph
shows the value of investment at various rates of return for Rs. 1000/-
invested every month for 30 years.
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The BSE Sensex has generated returns at 19.43%*
CAGR from 1st January 1991 to 1st January 2008. Rs. 1000 invested every month
since January 1991 would have led to a total investment of Rs. 3.6 Lac. This
investment would have been worth Rs. 2.03 Cr in January 2008. |
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Start Early |
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Now that we know that the power of compounding can
create magic for your investments, starting your investments early also has its
own advantages. Starting early means that the power of compounding starts
acting on your money earlier thereby generating higher returns.
Consider the following graph: |
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An individual who starts planning for his retirement
at 25yrs of age by investing a modest Rs. 1000 / month collects upto Rs. 40 Lac
on retirement whereas his investment over the period is just Rs. 4.2 Lac
On the other hand if the same individual delays his retirement
planning by 5 yrs, his wealth upon retirement reduces significantly (approx Rs.
15 Lac.) |
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Now you can enjoy insurance while your wealth is
compounding. With Birla Sun Life Century SIP, you get life insurance cover of
upto 100 times your SIP installment amount. |
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Volatile markets are of major concern. Do you know that SIP
helps you tame market volatility? Click here to know more. |
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| 4. |
Fights market volatility |
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Every investor dreams of purchasing stocks at a low
price and selling it at a higher price. But, how does one know whether any
given time is the right time to buy or sell? Many retail investors try to judge
the market movements and end - up losing their monies in the long term.
A more successful strategy is 'Rupee Cost Averaging' wherin you
invest a fixed amount regularly. Thus you purchase more when the prices are low
and purchase less when the prices are high. SIP investments takes advantage of
this strategy:
Consider this-
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| Month |
NAV |
Mr. SIP investor |
Mr. One Time Investor |
| Amount Invested |
Units Accumulated |
Amount Invested |
Units Accumulated |
| 1 |
10 |
1000 |
100.00 |
6000 |
600 |
| 2 |
11 |
1000 |
90.91 |
0 |
0 |
| 3 |
9 |
1000 |
111.11 |
0 |
0 |
| 4 |
8 |
1000 |
125.00 |
0 |
0 |
| 5 |
8 |
1000 |
125.00 |
0 |
0 |
| 6 |
11 |
1000 |
90.91 |
0 |
0 |
| Total units accumulated |
642.93 |
600 |
| Value of investment (Rs.) |
7072.22 |
6600 |
| Avg. price / unit |
9.33 |
10 |
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Mr. SIP Investor and Mr. One time Investor both invest Rs.
6000/- in a mutual fund scheme. SIP investor invests Rs. 1000/- per month
whereas Mr One Time thinks that an NAV of 10 is the right price to invest.
In case of the SIP investor, his monthly investments
automatically help him purchase more units when the prices are low. In tha same
way he purchases less units when the prices are high.
In the long term, the SIP investor gains as his investments are
unaffected by market volatility. |
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Now fight market volatility + get life insurance. Birla Sun Life Century SIP gives you life insurance cover of upto 100 times your SIP installment amount. |
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See how SIP helps you beat inflation too! Click here |
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| 5. |
Fights Inflation |
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SIP helps the investors invest in the Equity
Markets. But, how does that help beat inflation? Well, you may want to check
out the following graph: |
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It is evident from the graph that in the long term,
equity investments have helped outperform various other investment avenues and
has also helped beat inflation by a huge margin.
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Are inflation worries draining your wallet already? We bring you
some relief - Birla Sun Life Century SIP
gives you life insurance cover of upto 100 times your SIP installment amount. |
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See how SIP helps you achieve your financial goals, click here |
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| 6. |
Helps plan for your financial goals |
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SIP is a one stop shop to fulfill all your financial wishes and needs. It's
really as easy as 1, 2, 3.
Click here to visit our Step by Step Financial Planning tool to
plan for your financial goals. |
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Now you can get life insurance along with achieving your
financial goals. That's one financial task off your shoulders! Birla Sun Life
Century SIP offers you life insurance cover of upto 100 times the SIP installment amount. |
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SIPs help you save taxes too! Click here to find out how |
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| 7. |
Helps Save Taxes |
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Do you always wait till December / January to hunt for the 'right' tax saving
fund? While doing so you leave your investment to the mercy of the volatile
market by making a lumpsum investment.
Now, you can start an SIP in Birla Sun Life Tax Relief '96
(BSLTR'96) which is an open ended Equity Linked Savings scheme. Investments of
upto Rs 1 Lac in Birla Sun Life Tax Relief '96 are exempt from tax as per
Section 80C of the Income Tax Act.
Birla Sun Life Tax Relief '96 has been ranked 3rd among the Top
performing equity Funds in the World by Lipper, a Reuters company. BSLTR'96 was
judged so for its 10 yr performance (as on 31 Dec '07) on the basis of
consistent returns among 6302 equity schemes considered for this ranking. |
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Now you can Save Tax + Create Wealth + Get Life Insurance Cover! Start an SIP in Birla Sun Life Tax Relief '96 through our Century SIP scheme
and get life insurance cover of upto 100 times the SIP installment amount. |
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