Birla SunLife Capital Protection Fund Review

Birla SunLife Capital Protection Fund Review

Let us today review Birla Sunlife Capital protection fund. Well, it is a close ended fund having a tenure of 27 months and according to the fund house, this is the fund for those investors who want to invest for short term as well as want the protection of their capital.

So How Birla Sun Life Capital Protection Fund will protect your money and at the same time give you good returns?

Well, it’s simple. The fund will achieve this goal by investing majority of its money in the debt instruments and a minor amount of money in the equities.

It will adjust a proportion in such a manner that after 27 months, because of its debt component, you will get at least your money back even if the market crashes.

The fund manager will invest almost 90% of invested money in high quality debt instruments. This investment will be in such a manner that the maturity value will be more than 100% of the total investment at inception. The remaining 10% amount will be invested in shares of reputed Indian companies.
The strategy ensures that you get your capital back, irrespective of stock market conditions. This way the fund aims to offer you an opportunity to invest in equities without risking your entire investment.

Who Should Invest in this Fund?

Well, if you have never invested any money in Bank FDs, PPF, Post-office savings schemes, Government Bonds or any other fixed income instruments than you can invest in this fund as this fund invests 90% of its corpus in the debt instruments.

Who Should not Invest in this Fund?

Well, this fund is actually a type of Fixed deposit which try to give you somewhat higher returns than the regular FDs by investing its 10% in equity. So if you have already invested in any one of the above fixed income instruments than simply don’t go for this fund.

This fund is a hybrid fund which invest mainly in debt (90%) and some part in Equity (10%).