You generally keep your money in a savings account so that you can withdraw it at any time and also enjoy some interest on it while its there. While a savings account is a good option to keep your money handy, the interest it earns does not even match up with inflation (the avg. inflation rate in the last 5 years was 6.29%!). A smarter option can be Birla Sun Life Cash Manager (BSL Cash Manager) could be a smarter option. It keeps your money easily accessible and also offers you the potential to earn more than the savings bank interest.
1.Safety and liquidity with tax efficient dividends
Highlights do not indicate assurance of future scheme performance. Inflation rate of 6.29% is the average of the annual inflation rate from 2005 to 2010 based on WPI (source: http://eaindustry.nic.in)
Tax Efficient Dividends
Here's an example showing the growth of 1 lakh kept for 3 months in Savings Account v/s BSL Cash Manager – Retail Weekly Dividend Option
Your post-tax gain:691
BSL Cash Manager
Your post-tax gain:1,000
- You can be taxed upto 30.90% on returns if you belong to the highest tax bracket.
- Tax free returns in the daily and weekly dividend option
- Interest credited on monthly or quarterly basis.
- Choice to earn returns daily or weekly through the daily / weekly dividend options.
Above workings are for illustration purposes only and based on prevailing taxation laws. For individual nature of tax implications, investors are requested to consult their tax advisor before investing. For Savings A/c: Post tax gain computed assuming 4% p.a. interest on 1 lakh. (source: www.statebankofindia.com, as on 31-Oct-11) and the individual investor belongs to highest tax bracket. As per current RBI guidelines, banks are required to offer a uniform interest rate on savings bank deposits of upto Rs 1 lakh, whereas interest rate 1 lakh of savings bank deposits, may vary from bank to bank. This applies to savings bank deposits of resident Indians only. For BSL Cash Manager-Retail Weekly Dividend Option: Post tax gain computed based on actual dividends paid to individual investor in BSL Cash Manager - Retail Weekly Dividend from 1 Aug 11 to 31 Oct 11. For dividend option, returns are tax-free in the hands of investors. However, dividend distribution tax of 13.5188% is deducted in case of individual investors by the fund house.
Past performance may or may not be sustained in the future.
You can withdraw your investment in BSL Cash Manager at any time without any charge. You can avail of the direct credit facility to your bank A/c and the withdrawn amount normally gets credited to your bank within one working day if you give us a withdrawal request before 3 p.m.
For the latest load structure applicable to the scheme, please visit www.birlasunlife.com
Highest Safety Rating
BSL Cash Manager invests your money in highly rated Corporate Bonds, Bank Certificate of Deposits etc. In fact, CRISIL – a reputed credit rating agency has given it the AAAmfs rating (This means that the investments of the scheme, provide very strong protection against losses from credit defaults).
Get the latest NAV on SMS, send NAV <46N> as an SMS to 56161. Premium SMS charges apply.