Birla MIP Fund

BIRLA MONTHLY INCOME PLAN

Initial offer opens: October 9, 2000
Closing Date: November 10, 2000
Nature of Scheme: Open Ended Income scheme
AMC: Birla Sun Life Asset Management Company Ltd
Load: No Entry and Exit Loads for initial offer.

Continuous Offer opens: Within 45 days from the close of the initial offer period
Sponsor: Birla Global Finance Ltd and Sun Life (India) AMC Investments Inc.,
Trustee: Birla Sun Life Trustee Co Ltd
Minimum subscription:Rs.25000/- for Monthly Dividend and Monthly Payment Plans and Rs.5,000/-for Growth Plan

Objective of the fund: The primary objective of the scheme is to generate regular income and the secondary object is the growth of capital.
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Highlights

This scheme offers Monthly dividend plan, Monthly Payment Plan and Growth Plan.
Dividend tax free in the hands of the investor U/s 10(33) of Income Tax Act
Switching option available to the investors from one scheme to other .

Strategy of investment

Under normal circumstances the fund proposes to invest 85% of investible funds in Debt and Money Market Instruments and the balance in equity or equity related instruments.

Schemes launched by Birla Mutual Fund

Birla Mutual Fund has launched several schemes catering to the needs of all categories of investors in different sectors. Tax Plans from the year 98 onwards for tax payers, Gurantee Income Plans, MNC, Balanced, Gilts, IT etc., schemes for others.

Performance overview of some of the schemes of Birla Mutual Fund

Name of the Fund	NAV as on 10.09.2000	NAV as on 31.08.2000	NAV as on 31.07.2000	NAV as on 30.06.2000	NAV as on 31.05.2000	NAV as on 30.04.2000
Birla Balanced	10.82	12.16	11.21	12.41	11.47	12.42
Birla Income Plus	18.29	18.05	17.97	18.01	17.99	17.87
Birla Advantage	35	42.20	38.21	45.40	40.54	44.92
Birla Cash Plus	13.55	13.41	13.29	13.18	13.09	13.00
Birla MNC Fund (Plan B)	28.64	32.21	31.59	32.47	31.00	30.07

Comparative Analysis of similar other funds

Name of the Fund	NAV as on 10.10.2000	NAV as on 31.08.2000	NAV as on 31.07.2000	NAV as on 30.06.2000	NAV as on 31.05.2000	NAV as on 30.04.2000
Alliance Monthly Income (Gr)	12.76	12.75	12.56	12.75	12.59	12.65
ING Income Portfolio(Gr)	11.53	11.41	11.34	11.39	11.35	11.26
Kothari Pioneer Income Builder Account (Gr)	14.87	14.69	14.55	14.67	14.67	14.57
Reliance Income Plan (Gr)	13.66	13.5	13.4	13.43	13.4	13.27

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A careful study of the above table reveals that the NAVs of the above funds exhibit positive trends with a constant increase though at a slow pace.

Risk Perception

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A careful observation of the performance of the fund shows that Birla Income Plus and Birla Cash Plus have been giving reasonable returns to the investors.

The launching of the MIP scheme by the fund is appropriate especially in the present volatile market conditions. Investors who are risk averse can definitely think of investing in this scheme to get regular income and growth.