ABSL MF NRI
Being an NRI may have privileges, but the distance away from homeland and loved ones is a void hard to fill. Thankfully, the technology is keeping us connected in many ways. One other way to nurture bonds for many NRIs, is to make investments back in the home country. The best part is that India is at a vantage point where investments here not only have emotional payoff but may even have a financial one.
So why investing in India can make sense?
India is a developing & emerging economy which can offer growth opportunities to investors in the long run. According to a report, today's developing economies would be the world's largest economies in the next 30 years1, with India expected to be the 2nd largest economy by 20501. This can make India an investing hotspot today.
India is one of the youngest countries in the world. Over 62% of India's population is between productive ages of 15-59 years2. India's young demographics could be a key driver for its future growth.
Why mutual funds?
While there are several investment avenues available to you as an NRI investor, mutual fund investments can be one of the investment avenues because of the following reasons:
- 1. As an NRI investor settled overseas, you may not be abreast with all the developments and movements in the Indian economy. Mutual fund investments seek to offer simple and cost-efficient platform to invest in different types of securities available in the Indian Capital Market via funds/portfolios without having to monitor them on a daily basis.
- 2. Mutual fund investments aim to offer flexibility in mode of investing to suit your affordability as well as offer you a variety from debt to equity to hybrid to suit your risk-reward requirement.
- 3. Mutual fund investing today can be executed online, negating the need for your physical presence. This ease of investing coupled with the potential for remote online monitoring can make it one of the investment choices.
Different Modes of Investing
1. Systematic investment plan (SIP)
SIP allows you to invest in mutual funds schemes, in amounts of your choice at regular intervals. SIP investing aims to assists in systematic wealth creation with benefits of compounding and rupee cost averaging.
- Removes the need to time the market
- Leverage Rupee cost averaging
- Get Benefits of compounding
- Provides Flexibility in terms of the amount or frequency of investment.
2. Century SIP (CSIP)
Century SIP (CSIP) is a Life cover option to the eligible investors that you can select when starting a new SIP in designated schemes of Aditya Birla Sun Life Mutual Fund. By opting for this facility, you can get a cover of up to 100 times of your monthly CSIP installment that too at no additional cost Year 3 onwards.
If Century SIP continues, the cover would be as follows:
- First year - 10 times the monthly CSIP installment
- Second year - 50 times the monthly CSIP installment
- Third year onwards- 100 times the monthly CSIP installment
All the above-mentioned limits are subject to maximum cover of Rs. 50 lacs per investor across all schemes/plans/folios of Mutual Fund
- Year 3 onwards life cover of up to 100 times the monthly Century SIP installment
- Maximum cover of Rs. 50 lacs per investor across all schemes/plans/folios of Mutual Fund
- Minimum Entry Age - 18 years; Maximum Entry Age - 51years; cover would be valid up to 60 years of age
- Life cover to be available even if investor discontinues the monthly CSIP investment after 3 years*
- No Medical test required
*In such cases, insurance cover equivalent to the value of units allotted under Century SIP investment at the start of the each policy year, subject to a maximum of 100 times the monthly instalment. In case you stop your CSIP before the completion of 3 years, the insurance would be stopped immediately.
3. Systematic Transfer plan (STP)
In this mode of facility, you can instruct your AMC to switch over invested funds from one type of mutual fund scheme to another type of mutual fund scheme within the same AMC, at consistent, predetermined intervals.
- Facilitates Rupee cost averaging
- Helps in re-balancing the portfolio allowing you to switch from debt to equity or vice versa.
- STP also facilitates power of compounding that can help you earn potential return on your investment.
- Can Help in financial planning as it gives the flexibility to transfer from one asset class fund to another asset class fund depending on the need.
4. Systematic Withdrawal plan (SWP)
This facility is designed to help you generate a regular income from your existing investments. Through SWP you can withdraw pre-determined amounts at regular intervals from your mutual fund investments. The consistent nature of this facility can help in averaging returns as a buffer for market volatility.
- Allows systematic redemption of invested money depending on the liquidity need.
- Aim to Help in meeting regular cash flow goals such as post retirement income requirement or managing child's education expenses
Brief description of 5 products
An appropriate combination of equity and debt-based funds can be chosen keeping in mind your goals, investment horizon and risk appetite. Let us take a closer look at some of our funds that can suit you as an NRI investor:
1. Aditya Birla Sun Life Frontline Equity Fund
(An open ended equity scheme predominantly investing in large cap stocks)
A large cap equity fund which seeks to invest in stocks of established companies with strong fundamentals with an aim to generate returns over the long term. Novice investors who have moderately high risk and wish to invest in equities can leverage the strength and stability of large caps with the help of this fund.
2. Aditya Birla Sun Life MNC Fund
(An open ended equity scheme following the MNC theme in its investments)
A thematic equity fund investing in stocks of established Multinational Companies (MNCs) through a research-based investment approach. The investment emphasis of the Scheme would be on identifying companies with sound corporate managements and prospects of good future growth. Essentially, the focus would be on stocks driven by long term fundamentals. Can be suitable for long-term investors aim to create wealth with relatively moderate levels of risk.
3. Aditya Birla Sun Life Corporate Bond Fund
(An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds)
A short-term debt-based mutual fund scheme that seeks to invest primarily in AA+ and above rated Corporate bonds. Can be suitable for investors who are looking to invest their money for short-term while seeks to earn reasonable returns.
4. Aditya Birla Sun Life Banking and PSU Debt Fund
(An open ended debt scheme predominantly investing in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds
A debt-based mutual fund that invests primarily in debt instruments of government-backed entities. Both PSUs and PFIs can have the potential to offer relatively low risk returns for your investment as well as high liquidity. In fact, the basis of a strong economy lies in its robust banking system and reliable government companies.