You’ve worked hard to earn money. And you want investments that keep your money safe. Traditional deposits come to mind first. But with safety, wouldn’t you also like to get better returns?
Birla Sun Life Capital Protection Oriented Fund Series 1 is designed to keep your money safe and at the same time allowing a small portion of your money to participate in equity growth. That too, with tax efficient returns as compared to traditional deposits.
The illustration below explains how this scheme is designed to work:
Greater Safety, Rated AAA (so) by CRISIL
Birla Sun Life Capital Protection Oriented Fund – Series 1 has passed the mandatory requirement of getting a rating from CRISIL, by recieving the AAA (so) rating which is the highest safety rating given by CRISIL. Hence, the debt part of your money will be invested in Government bonds, bonds that are approved by CRISIL or bonds that are rated AAA / AAA(so) by CRISIL; which increases the safety of the debt portion of your investment.
Returns, That Too Tax-Efficient!
Here’s the best part of investing in this fund. When investing in traditional deposits, you can end up paying as much as 30.9% tax on your returns. However, in Birla Sun Life Capital Protection Oriented Fund – Series 1, you may have to pay as little as 10.3% tax as long term capital gains. You can ask your tax advisor how to take advantage of triple indexation which could further reduce your tax liability.
This is a good investment for people with very low risk appetite who always want their capital to be safe. Since only 10% is invested in equities, the upside is also limited. Though something is always better than nothing.
The subscription to this fund is open upto 5th March 2010. You can download the form here.
