NFO: Recurring Savings Plan By Birla MF

Birla Sunlife Mutual Fund has launched a new concept scheme under name as RECURRING SAVINGS PLAN (RSP) from July 23, 2012 on a regular basis (ongoing scheme) under the existing plans of Birla Sun Life Medium Term Plan and Birla Sun Life Monthly Income Plan. The fund house is also providing Life Insurance under the scheme, if  an investor opt for, at no extra cost. The previous similar scheme was under selective equity schemes, which can also opt for.

The details of the plan are given hereunder as provided by the fund house.

Download Application Form

(*No transaction charges will be deducted on the above form. **First time investors in mutual fund should ask for KYC form)

Details of Issue:

INTRODUCTION OF RECURRING SAVINGS PLAN (RSP)

• Available under Select Schemes w.e.f. July 23, 2012.

• Available with or without Life Insurance cover.

Option of an add-on benefit of a Life Insurance cover is at no extra cost.

Select Schemes for RSP

• Birla Sun Life Medium Term Plan (An Open ended Income Scheme)
• Birla Sun Life Monthly Income (An Open ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus)

A. FEATURES OF RSP WITH LIFE INSURANCE COVER:

Eligibility Criterions for Insurance Cover

•  Only Individuals (Including NRIs & PIOs – subject to additional criterions)
•  Age between 18 years and 46 years, at the time of the first investment

Provided Investors -

•  Sign “Good Heath Declaration” and
•  Fill Date of Birth, Gender and Nominee details at the specified places

P.N.-

•     In case of joint unit-holders, only the first unit holder would be eligible.
•     In cases where investor is not eligible or not complied with the requirements, RSP will be registered without the cover.

Additional Criteria for NRI/PIOs (Refer Addendum) Investment Amount in RSP :

•     Minimum: Rs. 1000 per month
•     Maximum: No upper limit

Mode of Payment:

•     ECS / NECS / RECS / Auto Debit only.
•     To be drawn in favor of “Scheme Name” / “Birla Sun Life Recurring Savings Plan”

Investment Dates:

•     1st or 7th or 10th or 14th or 20th or 21st or 28th of every month (or next business day, in case of a non business day).

Tenure of RSP:

•     55 Years minus current completed age of the investor.

E.g. For an investor at the age of 40 yrs 5 months, the tenure shall be a period of 14 years and 7 months Discontinuation of RSP

•     Investor intimates the BSLAMC to discontinue RSP, or
•     Investor defaults RSP installments for two consecutive months during the tenure of the RSP, or
•     Investor defaults RSP installments for four separate occasions (months) during the tenure of the RSP

There shall be no provision to revive the insurance cover under RSP, once discontinued. However, the investor can choose to continue investing in the same folio. Load Structure Load Structure for availing RSP with Insurance Cover would be:

Entry Load:     Nil
Exit Load**:      2.00% up to 1 year ,     1.00% between 1 year to 3 years and     Nil thereafter
**In the unfortunate event of death of the investor, no exit load on redemption / switching out of units by the nominee / joint holder, as the case maybe.

Life Insurance Terms:
Amount of Life Insurance Cover: If RSP continues, the insurance cover for eligible investors would be as follows:

•     Year 1 : 10 times the monthly RSP installment
•     Year 2 : 50 times the monthly RSP installment
•     Year 3 onwards : 100 times the monthly RSP installment

If RSP discontinues, the insurance cover would be as follows:

•     RSP discontinues before 3 years : Insurance cover stops immediately
•     RSP discontinues after 3 years : Insurance cover equivalent to the value of units allotted under RSP with Life insurance cover investments at the start of the each policy year, subject to a maximum of 100 times the monthly installment.

All the above mentioned limits are subject to maximum cover of Rs. 20 Lacs per investor across all schemes / plans / folios of RSP with life insurance cover.

Commencement of Insurance Cover Starts with the commencement of RSP. However, only accidental deaths will be covered for the first 45 days.

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Tags: 2012, birla sun life mutual fund, Life Insurance, nfo, NRI

Category: Life Insurance, Mutual Fund, NFO, NRI