MUMBAI: Inspite of the economic downturn and pessimism in the market, Birla Sun Life's monthly income plan (MIP) 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 CAGR of 12.5% over a three-year period against the benchmark Crisil MIP Blended Index return of 8.4% as on July 31.
An investor who has invested Rs 1 lakh in the scheme at inception in May
2004 would have received Rs 540 as average monthly income in the form of dividends against Rs 440 from a bank FD and post-office monthly income scheme till July 31, Birla Sun Life CEO A Balasubramanian told reporters here.
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 are taxable but income from BSL MIP II Savings 5 is not taxable.
Birla Sun Life Asset Management is one of the top five asset management firms in India with assets under management of Rs 57,331 crore as on July 31, 2009.