What would you do if you had a second income?
What would you do if you had an extra on the monthly income more so if it were tax free in your hands?
You may want to do things which you may be putting off for a while… may be send your children for music classes, take your family out for dinner more often, have your home painted. Or if you are retired, that extra can help maintain your lifestyle in the face or rising prices.
An extra on the monthly income can come from conventional options life FD and Post Office Monthly Income Scheme. But, have you checked out Birla Sun Life MIP II – Savings 5 Plan (BSL MIP II – Savings 5 Plan), - the monthly income plan that has given superior monthly income since its launch than these conventionaloptions.
1. Regular Income
2. Capital Growth
More For Today, Protection For Tomorrow
BSL MIP II – Savings 5 Plan aims to provide regular income and protect the purchasing power of your savings, by splitting your investments as per market conditions:
90-100% of the investment aims to provide you with regular income. It is invested in some of the safest instruments around, like highly rated bonds issued by the Government of India, PSUs and other reputed Indian companies.
The balance (0-10%) protects the purchasing power of your wealth, through growth in handpicked companies. This part is also diversified, to spread and reduce risk.
Yet Earns More For You Than Others
BSL MIP II – Savings 5 Plan outshines traditional options like FDs and Post Office Monthly Income Scheme by far. The key advantage is its tax-free nature (because monthly income is declared in form of dividends). After all, why pay tax on your savings or retirement fund?
BSL MIP II–
Savings 5 Plan
Post Office Monthly Income Scheme
Tax on monthly income
Post-tax Monthly Income(for every Rs 1 Lac invested)
(537 x 12 = 6444/yr)
(432 x 12 = 5184/yr)
(461 x 12 = 5532/yr)
Exit load or penalty
1% for the first year,none thereafter
1% if withdrawn before maturity
2% - after 1st year up to3rd year; 1% - 4th-6th year
Post Tax Monthly Income for FD is calculated on a rate of interest of 7.5% p.a.(Interest rate for 8yrs and upto 10 yrs as on 9 Nov 09, source: www.sbi.co.in) and for PO MIS at 8% p.a. (source: www.indiapost.gov.in). Tax liability of 30.90% is applied assuming qualifying amount of deduction is Rs. 1 lakh & investor falls in the top income tax slab of 30% & includes applicable cess. Refer disclaimer below:
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