Birla Sun Life Asset Allocation Fund - Conservative Plan

Birla Sunlife Asset Allocation Fund is managed by Mr. Satyabrata Mohanty. The scheme aims to provide income and capital appreciation along with diversification by investing in a basket of debt and equity mutual fund schemes of the AMC, in line with the stated asset allocation. This fund has given an average performance. New investors can skip this fund for a better performing fund in this category.

Where does Birla Sunlife Asset Allocation Fund invest your money?
Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's Education
  • Marriage
  • Home Purchase
Not suitable for what?
  • Creating wealth 
  • Short term needs
  • Lifestyle needs
  • How has Birla Sunlife Asset Allocation Fund performed in the past?

    If you had invested Rs 1 lakh when the fund was launched in Feb 2004, your value of investments would be around Rs 2.38 lakhs. If you had invested Rs 1 lakh for 5 years, the value of your investments would be around Rs. 1.48 lakhs. The performance has been similar to or at times better than other funds in this category. 

    Assume you had invested Rs 10,000 every month in Birla Sunlife Asset Allocation Fund through SIP for the past 5 years today you would have around Rs 7.49 lakhs.

    How will Birla Sunlife Asset Allocation Fund 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 9% 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 mutual funds to give you returns in excess of 14%.

    Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

    Our recommendation for fresh investment
    Not Recommended
    Our recommendation for existing investment
    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.

    How frequently you need to monitor 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 quarter. Look out for news and developments that can affect the sector as a whole.

    What are the charges applicable?

    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.

    No exit load applies for units withdrawn. 

    What are the tax implications?

    The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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