Page 31 - Banking Finance June 2025

ARTICLE

Conclusion 2. Migration & Development Brief 40, June 2024, World
Bank Group
Cross border payment is the arterial system of global
economy supplying lifeblood across the vast and sometimes 3. Enhancing Cross-border Payments, Stage 1 report to the
treacherous routes connecting countries and economies in G20: Technical background report, Financial Stability
an intricate web of interdependent linkages. Just like an Board, 09t April 2020
arterial blockage causes reduced supply of oxygen to that 4. Project mBridge-Connecting economies through CBDC,
part of body or even a heart attack, an anaemic interna- Oct 2022, BIS Innovation Hub
tional payments system that does not reach intended desti- 5. BIS Papers No 147 Embracing diversity, advancing to-
nation at intended time leads to less-than-optimal out-
gether - results of the 2023 BIS survey on central bank
comes. It may even result in complete breakdown of politico-
digital currencies and crypto by Alberto Di Iorio, Anneke
economic model on the bedrock of which grow not only glo-
Kosse and Ilaria Mattei Monetary and Economic De-
bal trade but also international relations. partment, June 2024
6. https://www.migrationdataportal.org/themes/remit-
The present system of international payments is in dire need
of transformation. There are many international collabora- tances
tive projects underway in this direction under the aegis of 7. https://www.weforum.org/agenda/2023/10/cross-bor-
multilateral bodies such as G-20. However, the success of der-payments/
all these models will depend on how they respond to gover- 8. https://www.ey.com/en_gl/insights/banking-capital-
nance, legality, and privacy related concerns. These are markets/how-new-entrants-are-redefining-cross-bor-
times of rapid changes and only time will tell which model der-payments
comes out on top, but these are exciting times for banking
9. https://www.bankofengland.co.uk/payment-and-settle-
and payments industry, nonetheless.
ment/cross-border-payments
References 10. https://www.fsb.org/work-of-the-fsb/financial-innova-
tion-and-structural-change/cross-border-payments/
1. Resilient Remittances, Dilip Ratha, World Bank F&D,
September 2023 11. https://www.ir.com/guides/cross-border-payments

Aditya Birla Sun Life Balanced Advantage Fund turns Rs 10,000

SIP to Rs 1.6 crore in 25 years

Aditya Birla Sun Life Balanced Advantage Fund has turned Rs 10,000 monthly SIP to more than Rs 1.6 crore in the last
25 years. That implies a compounded annual growth rate (CAGR) of 11.7% during the same time. The fund, launched
on April 25, 2000, caters to investors seeking long-term growth potential and upside of equity, but at lower volatility
levels. Aditya Birla Sun Life Balanced Advantage Fund balances the equity and fixed income exposure basis market
valuation to generate a reasonable return with relatively lower volatility, according to a wealth creation study by the
fund house.
The dynamic asset allocation model automatically reduces equity exposure at higher valuation levels and helps miti-
gate volatility in returns. Historically, the fund has offered lower drawdowns and faster recovery compared to broader
markets. It aims for consistent downside protection while still capturing meaningful upside potential.
Since 2015, the fund has generated nearly 80% of Nifty’s return with an average net equity exposure of almost 52%
while experiencing only 66% of Nifty’s volatility. Over a three-year rolling period, the fund has delivered returns above
8% in more than 86% of instances over the last nine years
“The 25-year journey of Aditya Birla Sun Life Balanced Advantage Fund is not just a performance milestone, it is a
testament to the dedication of our team and the enduring confidence of our investors. The endeavour is to provide
peace of mind to an investor by dynamically adjusting the equity and fixed income exposure and aiming to provide
reasonable returns with lower volatility,” said A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC.

28 | 2025 | JUNE | BANKING FINANCE