Birla Sun Life 95 Fund-Plan B(Growth)

Birla Sun Life 95 Fund-Plan B fund is a balanced mutual fund. This fund is managed by Mr. Satyabrata Mohanty and Mr. Nishit Dholakia. The fund has been consistent in its performance and has beaten its benchmark in most periods. It is one of the old horses and is a fairly good fund to hold on to.

Where does Birla Sun Life 95 Fund-Plan B fund invest your money?

Birla Sun Life 95 Fund-Plan B is an equity oriented balanced fund which invests your money in both equity securities and debt securities. It has about 66% exposure to equities. The fund managers take the liberty of switching wildly between market caps for the equity portion. Presently it is predominantly exposed to large cap stocks. Large cap companies tend to be stable compared to mid cap and small cap companies. The debt portion is invested in bonds and debentures of high quality.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not Suitable for?
  • Long term needs
  • Creation of wealth
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. You can invest in Birla Sun Life 95 Fund-Plan B for all needs that are expected to arise in the next 3-5 years. Do not make the mistake of investing in too many mutual fund schemes. One or at the most two good mutual fund schemes are all that are needed to take care of your needs.

Our recommendation for fresh investment
Our recommendation for existing investment
How has Birla Sun Life 95 Fund-Plan B performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Feb 1995, your value of investments would be around Rs 30.5 lakhs. The performance has been better than or similar to other equity oriented hybrid mutual funds. The fund has been giving at around 12% every year for those who stayed invested since the last 5 years.

Assume you had invested Rs 10,000 every month in Birla Sun Life 95 Fund-Plan B through SIP for the past 5 years today you would have around Rs 8 lakhs.
How will Birla Sun Life 95 Fund-Plan B perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 8% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. 

So if you expect the economy to grow at 8% then you can expect top performing equity mutual funds to give you returns in excess of 12%. Debt funds are expected to give anywhere between 0.5%-3% higher returns than Fixed Deposits.
When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10,000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Birla Sun Life 95 Fund-Plan B is 2.77%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

Returns on equity oriented hybrid funds are absolutely tax-free provided you do not withdraw within a year of buying the units. Birla Sun Life 95 Fund-Plan B does not qualify for sec 80C ELSS benefits.

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