Birla Sun Life MIP outperforms other saving schemes

By SiliconIndia   |   Wednesday, August 26, 2009
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Bangalore: Despite the economic slowdown, Birla Sun Life MIP II Savings 5 Plan has yielded investors better post-tax returns than bank fixed deposits (FDs) and post-office deposit schemes. Birla Sun Life Mutual Fund's open-ended monthly income plan (MIP) II-Savings 5 plan has performed well with the fund generating a compound annual growth rate (CAGR) return of 12.5 percent over a three year period against the benchmark Crisil MIP Blended Index returns of 8.4 percent as on July 31. Birla Sun Life's CEO, A Balasubramanian said, "An investor who has invested Rs. 1 lakh in the scheme since its inception in May 2004, would have received Rs. 540 as average monthly income in the form of dividends as against Rs. 440 from a bank FD and post-office monthly income scheme (POMIS) till July 31, 2009." During the same period while the Rs. 1 lakh invested initially would not have appreciated in conventional saving options, it would have grown to Rs. 1.12 lakh in this fund. More importantly, the income from the conventional investment options is taxable but income from Birla Sun Life MIP II-Savings 5 is not taxable. Post-tax monthly income for FD and POMIS is calculated on a rate of interest of eight percent per annum and 7.25 percent per annum, respectively.
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