Taking Dreams to the Future

For private circulation only.

We dream a little every time we
see our children.
A dream of their grand future.
Just like a shining bright star.
But Dreams need MORE.
They need ACTION.
They need some CARE &
NURTURING.
Before they become
REALITY.
As parents, we go great lengths for our child’s future
Sacrificing our own pursuits is a part and parcel of it
Isn’t every little sacrifice worth a thousand joys?
 After all, we want to ensure our kids’ success
• Indian parents labour over Children's homework the most – 12 hours per week, more than any other country*
• They dream for careers like Medicine, Engineering, MBA for their children**
• They prefer a Successful Career for their children most along with overall health and happiness**

What parents want their children to become What parents want for children

Medicine 14 Sucessful Career 51

Business 22 Be happy 49

Engineering 23 Lead a healthy lifestyle 33

Earn enough to enjoy a
IT 16 comfortable life 22

Others 25 Fulfil their potential 17

*SOURCE:* World Economic Forum via The Varkey Foundation. https://www.statista.com/chart/13838/where-parents-

help-their-kids-with-homework/
** The Value of Education Learning for life, published in 2015 by HSBC Holdings plc.
But Education Expenses: A drain on families

78% say it’s impossible to afford even 1 child’s education for an average 1-member working family

65% spend OVER HALF OF THEIR YEARLY INCOME on child’s education & extra co-curricular activities

SOURCE: tflguide.com, The Value of Education Learning for life, published in 2015 by HSBC Holdings plc
And it continues to get costlier

Are we prepared to meet the rising educational costs?

School fees, tuition fees & other associated expenses

up by 150% in the last 10 years

Average Annual Expenditure on private schooling

up by 175% in the same period

The cost of professional & technical education

up by 96% in the last 10 years

A child undergoing higher education (under graduation and above) costs 18.3%
of total household income in Urban India.

Source: ABSLAMC Research

 To give an idea

The MBA fee in top institutes has risen from Rs. 5.5 lacs in 2008-09 to Rs. 22 lacs in 2018-19, a hike of 15%
per annum
A look at what MBA course fee could cost in few colleges 20 years from now at an
inflation rate of 10%

Current Fees Expected

Region MBA Course Inflation (p.a.)
(INR) Fees (INR)
Domestic Premium B School 22Lacs 1.48 Cr.
MBA from
top B-schools Top Management Institute 40 Lacs 10% 2.69 Cr.
International
Premium International Business School 52 Lacs 3.49 Cr.
MBA
Saving for MBA Dream of approx. Rs. 1.50 Crore

Depending on when you start saving, this is what you would need to save every month to
send your child to Top MBA college at the age of 21 years

1,40,000 1,40,000
INVESTMENT PER MONTH

1,20,000

1,00,000

80,000

60,000
54,000
40,000
25,000
20,000 15,000
0
1 year
30 535
years 1040
years 15 years
45
CHILD’S AGE AT THE TIME OF INVESTMENT

The assumed investment rate of return is 12% CAGR.

But, 80% of parents have not planned for child education

• Only 20% of parents surveyed had specific investment demarcated for Child education
• As a result, increasing aspirations and education costs are funded by borrowings and education loans

How parents fund their child’s education

59% day to day income*

48% general saving / investments / insurance**

20% specific education savings / investment plan**

28% short term loan or Credit Card**

12% Long term loan**

SOURCE: *The Value of Education Learning for life, published in 2015 by HSBC Holdings plc
**The Value of Education Learning for life, published in 2018 by HSBC Holdings plc
 And parents also mis-calculate the costs
Percentage of Parents who fund each of the following education costs
Rest is funded by students working or taking loans
75% 72% 66% 60% 60%

Fees Education technology Food Transport Academic textbooks

expenses

PARENTS mostly consider FEES as a savings target. They often forget to account for:
1. Inflation in tuition fees
2. Travel
3. Accommodation
4. Day-to-day expenditure
5. Exchange rate fluctuations if they plan to send the kid abroad

Source: The Value of Education Learning for life, published in 2015 by HSBC Holdings plc
Penalty for not being prepared: Parents’ Sacrifice & Regret
PARENTS’ SACRIFICE

35% 53% 40% 49%

Worked Extra Hours Drastically reduced Forfeited ‘me- Took fewer holidays
or stopped leisure time’ and/or
activities gave up hobbies

PARENTS’ REGRET
Worry they don’t
Wish they started
have financial Wish they had
61% saving for their
child’s education 35% resources to 46% done saving more
support their regularly
earlier
child’s education

Source: The Value of Education Learning for life, published in 2018 by HSBC Holdings plc
Penalty on our child for not being prepared

Not just us, our children pay a PRICE too

Burden of Education Loans
•NPAs in education loans have increased from 5.5% in 2015 to 7.7% in 2017
•If a child is unable to pay then his credit history takes a plunge too

Outstanding education loans (Rs. Bn)

800

700 682 701 697

633
600
600 550
499
500
427
400 369

286
300
205
200

100

0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

SOURCE: RBI
Can anyone plan for Child’s dreams without sacrificing their own?
Definitely YES!
• From the tiny steps to big strides, raising kids is rewarding but not easy
• At Aditya Birla Sun Life Mutual Fund, we understand that big dreams
need nurturing
• We help you invest today so that your kids can be carefree tomorrow
• So there’s never a strain on you. Just smiles!
 PRESENTING

ADITYA BIRLA SUN LIFE

BAL BHAVISHYA YOJNA
An open ended fund for investment for Children having a
lock-in for at least 5 years or till the child attains age of
majority (whichever is earlier)
Aditya Birla Sun Life Bal Bhavishya Yojna

An ideal investment solution to help you plan for their

children’s future

Investment in this fund can be planned for children, be it

their education, marriage expenses, a decent lifestyle,
etc.

Investment solution designed to resolve long term

education goals for your children

A child’s secured future is

the dream of every parent!

Preparing to Fly
 Who can Invest?
• The investments can be made only in the name of minors (<18 years at the time of investment)

• Unit holder till the time of attaining majority shall be represented by the parent or legal guardian

• Who can invest?

Parent/Guardian Grandparent Relative (Donor) Corporate/Trust/etc.

(Donor)

• Investment Options:
• SIP: Systematic investment plan to help invest in affordable monthly instalments
• Lumpsum: Invest a one time amount towards to your child’s future goals

*Please refer to SID of the scheme for detailed list of eligible investors
 Key Features - Caters to your child’s education goals

Wealth Plan Savings Plan

• The plan seeks income & capital appreciation
• The plan seeks generation of capital
by investing in a diversified portfolio of debt &
appreciation by investing in equity & equity
money market securities along with equity &
related securities and debt and money market
equity related instruments
instruments
• Asset Allocation
• Asset Allocation
Debt & money market securities - 75 - 90%
Equity & Equity related instruments -
Equity & Equity related instruments -
65 - 100%
10 - 25%
Fixed income securities - 0 - 35%
Units issued by REITs and InvITs- 0 - 10%
Units issued by REITs and InvITs- 0 - 10%
• Benchmark - Crisil Hybrid 85+15 Conservative
• Benchmark - S&P BSE 200 TRI Index

Plans/Options – Regular/Direct, Sub plans: Growth, Dividend

Lock-in period: Compulsory Lock-in option (5 years from the date of allotment; or Until the unit holder (being the beneficiary child) attains the age
of majority (i.e. completion of 18 years), whichever is earlier

*Please refer to SID of the scheme for detailed asset allocation table
 Investment Philosophy

Equity Fixed Income

• Multi-cap orientation with a focus on building • Accrual focused portfolio
a Diversified portfolio of quality companies • Discipline of low duration & high credit profile
across sectors and market cap • Exposure to high quality corporate bonds
• Bottom-up investment style focusing on • No G-Sec play
companies selected through fundamental • Buy & Hold strategy
research
• Quality orientation involves selecting
companies run by professional managements
backed by strong promoters
• Stock selection parameters include:
• Having robust business models
• Enjoying sustainable competitive advantage
• Having high return ratios
• Debt free companies

*Please refer to SID document for details

 How Aditya Birla Sun Life Bal Bhavishya Yojna helps?

Multiple Plan Investment Facility:

It provides you with the choice of investing in both Wealth and Savings plan at the time of
initial investments, subject to lock-in period

Intra-scheme switching option*:

The scheme allows you to switch from Wealth to Savings plan or vice versa as per your
requirement

Smart Withdrawal Plan (SWP):

It’s fixed payment option allows you to receive income at fixed intervals, subject to lock-in
period

*For tax implication, please consult your tax adviser

How Aditya Birla Sun Life Bal Bhavishya Yojna helps?

Systematic Investment Plan (SIP):

Best for salaried and others who have regular income

1. Regular monthly contributions 2. Benefit from rupee cost averaging and multiple market
cycles 3. Instil discipline of investing through SIPs

Systematic Transfer Plan (STP):

This facility allows you to transfer lump-sum money to other schemes with the potential for
higher growth through equities, subject to lock-in period

Name of Scheme
Aditya Birla Sun Life Bal Bhavishya
Yojna – Wealth Plan
Aditya Birla Sun Life Bal Bhavishya
Yojna – Savings Plan
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
This product is suitable for Riskometer
Investors who are seeking:*
• Long term capital growth
• investment in predominantly
equity and equity related
securities as well as debt
and money market instruments
• Long term capital growth
• investment in predominantly
debt and money market
instruments as well as
equity & equity related securities
Let’s nurture their FUTURE & Plan
Systematically with
Aditya Birla Sun Life Bal Bhavishya
Yojna!
An open ended fund for investment for Children having a lock-in for at least 5 years or till
the child attains age of majority (whichever is earlier)

NFO Opens: January 22, 2019

NFO Closes: February 05, 2019
Disclaimer:

The document is solely for the information and understanding of intended recipients only. If you are not the intended recipient, you
are hereby notified that any use, distribution, reproduction or any action taken or omitted to be taken in reliance upon the same is
prohibited and may be unlawful. Wherever possible, all the figures and data given are dated, and the same may or may not be
relevant at a future date. In the preparation of the material contained, ABSLAMC has used information that is publicly available
including information developed in-house. Information gathered and material used in this document is believed to be from reliable
sources. Further the opinions expressed and facts referred to in this document are subject to change without notice and ABSLAMC
is under no obligation to update the same. While utmost care has been exercised, ABSLAMC or any of its officers, employees,
personnel, directors make no representation or warranty, express or implied, as to the accuracy, completeness or reliability of the
content and hereby disclaim any liability with regard to the same. Recipients of this material should exercise due care and read the
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the Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s).

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS
CAREFULLY.

For private circulation only.