HAVE YOU FOUND A SOLUTION FOR YOUR

FAMILYS FINANCIAL GOALS?

ARE YOU SAVING ENOUGH?

YOUR CURRENT INCOME MAY NOT MATCH LIFES NEEDS

BIRTH & EDUCATION

RETIREMENT

Marriage

Child

Car

House

Childs Education

Childs Marriage

Can you ignore planning and investing for your future?

BASIC EXPENSES WILL KEEP GROWING OVER TIME

Assuming Inflation @ 6% for years 2020 and 2030

Are your investments growing adequately to meet your future needs?

YESTERDAYS LUXURIES ARE TODAYS NECESSITIES

ITEMS 1991 TODAY

Cable TV / Dish
LCD TV Mobile Washing Machine / Microwave Branded Watches / Clothes Bike / Car / Second Car Home Theatre System

No
No No No No No No

Yes
Yes Yes Yes Yes Yes Yes

Your ability to save falls due to higher demands on your income. Is your investment working hard enough for you?

YOUR FUTURE NEEDS

Mandatory expenses that make a demand on your households income are growing from changes in lifestyle and inflation

You need a plan to ensure that you save for the future and you put your savings to work, to meet those future goals

Do you have a plan to meet large expenses of the future? Are you saving enough with a specific purpose or goal in mind? Is your savings working hard enough to meet those goals?

WE ALL HAVE DREAMS FOR OUR FAMILIES

But the big challenge is how do we achieve these goals?

FAILING TO PLAN IS PLANNING TO FAIL

THREE FACETS OF THE INVESTMENT DECISION

WHERE
YOU INVEST?

Invest in a mix of assets that provide income and growth

DO YOU INVEST?

HOW

Invest in a diversified portfolio that is managed professionally

DO YOU INVEST?

WHEN

Invest systematically with discipline and patience

Mutual Funds can offer a one-stop solution for all the three questions

10

WHERE TO INVEST?
Spread your risks: Diversify by asset class

real estate

equity commodities gold short term debt long term debt international assets art

Each one comes with its return, risk and time horizon:
Equity offers better long term return, but higher short term volatility Debt offers steady income but limited long term appreciation

Your investments have to be tuned by allocating carefully across different types of assets

A diversified portfolio across asset classes can works best

11

WHERE TO INVEST?
Winners Rotate: Diversify by geography

No country will always be the best performer year-after-year

A diversified portfolio across geographies can work best

12

HOW TO INVEST?
Dont let the cycle of market emotions rule you

Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria Sir John Templeton

13

HOW TO INVEST?
Dont let the cycle of market noise rule you

A diversified portfolio works best for investors

14

HOW TO INVEST?
A professional investment manager is better equipped to take care of your investments!

15

WHEN TO INVEST?
It is tough to time the market

Perfect market timing requires: the right exit point and the right re-entry point
Getting even one of these wrong can affect returns

Mathematically, the odds are heavily against perfectly timing the market

Timing can be harmful to your investment

16

YOU MAY BE BETTER OFF STAYING PUT

Consider the BSE Sensex For the 15 year period ended February 29 2012 if you had: Stayed fully invested, your returns would be 11.12%

Missed the 10 best days, your returns would be

Missed the 20 best days, your returns would be Missed the 30 best days, your returns would be
Example of some best days: 18 May 2009 (17.34%): UPA Victory in 15th general elections 15 June 2006 (6.89%): Impact of rebound in global equity markets following strong US and Global data 01 March 1999 (8.97%): Impact of budget by the Finance Minister Yashwant Sinha

5.20%
1.23% -2.22%

The example given above is purely hypothetical and illustrative only since one cannot invest directly in the BSE Sensex

TWO CRITICAL FACTORS TO SUCCESSFUL

FINANCIAL PLANNING

18

START EARLY

The earlier you start investing, the more time you give your money to grow

The earlier you start, the lesser you need to save

Time is your friend when it comes to investing

19

STARTING EARLY CAN MAKE A DIFFERENCE TO YOUR WEALTH

Retirement corpus at age 60 assuming a return of 10% on their investments

INR 70.4 lac

INR 2.0 crore

20

THE MORE THE DELAY, THE MORE THE NEED TO MAKE UP

21

ALLOW TIME TO WORK FOR YOU

The magic of compounding means that your money multiplies over time If you invested INR 100 and it grew at a rate of 8% per year At the end of 50 years at a simple interest of 8% you would have INR 500 (INR 8 every yr. x
50 yrs. = INR 400 as interest + INR 100 as return of principal)

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 5 10 15 20 25 30 35 40

4690

But at a compounded rate of 8%, your money will be worth INR 4,690 after 50 years

500

45

50

Einstein called compounding the eighth wonder. Allow your savings the time to grow

22

MANTRAS FOR SUCCESS

Understand the need to save for goals

PLAN BETTER FOR YOUR FUTURE

Set the time frame to save Determine goal value and saving target Monitor the progress Motivate yourself to keep at it

You need a one-point solution that enables you to define, plan and reach your goals

23

Presenting

THE NEW PARADIGM

24

WHAT IS FAMILY SOLUTIONS?

A unique investment solution that helps you plan for your life goals

THE NEW PARADIGM

25

KEY ELEMENTS OF FAMILY SOLUTIONS

PLANNER & GOAL SHEET

APPLICATION FORM

ACCOUNT STATEMENT

GOAL TRACKER

THE NEW PARADIGM

26

HOW DOES IT WORK?

1
Create a customized plan using the Family Solutions Planner

4
Review and track progress of your goals through your advisor

2
Submit filled up Family Solutions form and Goal Sheet to us

3
Receive a Welcome Letter and customized Family Solutions Account Statement

KEY ELEMENTS: PLANNER AND GOAL SHEET

27

FAMILY SOLUTIONS PLANNER AND GOAL SHEET

Planner is available both on our website and with your advisor

INPUT

Goal details, target amount, timeframe, inflation and returns expectations (that determines portfolio style) Amount to invest annually / monthly / one-time to reach the goals & FT funds allocation

OUTPUT

Goal Sheet needs to be submitted with the application form

KEY ELEMENTS: PLANNER AND GOAL SHEET

28

WELCOME SCREEN

KEY ELEMENTS: PLANNER AND GOAL SHEET

29

INPUT SCREENS

Basic details are captured

Choose to plan for either one or all of the three goals

KEY ELEMENTS: PLANNER AND GOAL SHEET

30

Goal wise details entered basis your objectives / needs and expectations

KEY ELEMENTS: PLANNER AND GOAL SHEET

31

GOAL DETAILS
Goal wise output on how much to invest and which funds to invest in

KEY ELEMENTS: PLANNER AND GOAL SHEET

32

GOAL SUMMARY SHEET

View Goal Sheet to get your customized plan

Option to add more goals

KEY ELEMENTS: PLANNER AND GOAL SHEET

33

GOAL SHEET (OUTPUT)

The Goal Sheet is a summary of your goals and the recommended plan

KEY ELEMENTS: PLANNER AND GOAL SHEET

Details of individual goals summarized on the Goal Sheet

Details of amounts to be invested for the goal are highlighted

Recommended Funds for each of the goals are also shown

KEY ELEMENTS: APPLICATION FORM

35

APPLICATION FORM
Facility of multiple goals in one form Convenience of single cheque across multiple funds / goals in a form Flexibility of investing lump-sum (regular), SIP or combination of
both

Flexibility for existing FT investors to move into Family Solutions with

current investments

Transaction rules on load, minimum application amount, etc. same as

that at the underlying scheme level

SIP ECS form for multiple goals / schemes in each form

KEY ELEMENTS: APPLICATION FORM

36

APPLICATION FORM

Single table for multiple schemes across multiple goals

Option of Single Cheque across all funds (if lump-sum)

KEY ELEMENTS: APPLICATION FORM

37

SIP ECS FORM

Single ECS form for upto 4 schemes

KEY ELEMENTS: ACCOUNT STATEMENT

38

ACCOUNT STATEMENT Family Solutions details will be shown at a goal level

Funds are segmented Goal wise as per your specific goals

Current value of the goal is available

THE NEW PARADIGM

39

TO PLAN
Planner helps plan for life goals in simple, organized and customized way

Saves the trouble of choosing from 100s of funds with varied objectives

BENEFITS TO YOU

TO INVEST
You fill up a single form for all your goals and pay through a single cheque

TO MONITOR
Customized account statement gives details of goals, schemes invested in and the value of the investments Track the progress of your goals through your advisor anytime you wish

ARE YOU READY FOR THE NEW PARADIGM?

PRESENTING FAMILY SOLUTIONS

41

RISK FACTORS
Disclaimer: Setting up the goals, planning of investment and taking informed investment decision might require professional expert advice. You are advised to consult your advisor prior to arriving at the investment decision. There is no assurance or guarantee that the goals planned for will be achieved and the same is subject to the investment performance of the schemes. Past performance of the schemes is neither an indicator nor a guarantee of future performance, and may not be considered as the basis for future investment decisions. The recommendation given above is based on the inputs provided by you regarding your anticipated rate of returns and rate of inflation, the investment goals including the target amount and investment horizon. Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates and there can be no assurance that the schemes investment objectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. The names of the schemes do not in any manner indicate the quality of the schemes, their future prospects or returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus and the investment performance of the schemes. The investments made by the schemes are subject to external risks. Subscription in tax saving schemes are subject to lock-in period specified in the respective scheme information document and the investor cannot redeem, transfer, assign or pledge the units during the lock-in period.