Aditya Birla Sun Life Mutual Fund has launched its open-ended goal based scheme Aditya Birla Sun Life Bal Bhavishya Yojna. The fund has a lock-in period of minimum five years or till the child turns 18, whichever is earlier.
The fund aims to help investors meet the future financial requirements for a child such as expenditure incurred towards higher education and marriage. The idea is to encourage a disciplined long-term approach towards investment, particularly as the corpus is to be used for a child’s future needs.
The fund offers two investment plans – wealth and savings. Under the wealth plan, up to 65%-100% of the invested amount would be allocated in equity whereas the savings plan would see up to 75%-90% of the invested amount in debt and money market securities, with the balance in equities and units issued by REITS and InvITs.
Ajay Garg and Pranay Sinha will manage the scheme. Investments can be made only in the name of a minor who is less than 18 years, at the time of investing. The minor would be represented by his/her parent or legal guardian, till he or she becomes a major. Also, the fund allows grandparents, near relatives or non-individuals such as trusts & corporates to invest for their child. Any investment from a non-specified relative will be treated as a gift to the child.