3 1-Sip

SYSTEMETIC INVESTMENT PLAN
Empowering Beginner
www.prudentcorporate.com
Agenda
Various Stages of Life Cycle

Preserving the Purchasing Power of your investment
Financial Goals
How to achieve the goals
Sooner the better
Regular Investment is the key
Invest Wisely
Systematic Investment Plan
What is SIP & how does it work?
Patience is the key
Past performance in various market cycle
Life Stages
Biggest Challenge In Savings
Fighting consumer inflation

Fighting Lifestyle inflation
Example of Consumer Inflation
1985
Balcony Ticket : Rs 15/-
2014
Multiplex Ticket : Rs 250/-
Inflation Meter: 10.19%
1985
Hotel Bill : Rs 25/-
1985
Petrol Price : Rs 8 / L
1985
MBA Course : 40,000/-
2014
Hotel Bill : Rs 1000/Inflation Meter: 13.41%
2014
Petrol Price : Rs 72 / L
Inflation Meter: 7.87%
2014
MBA Course : 10,00,000/Inflation Meter: 11.54%
Real Life Example
Inflation Robs Your Purchasing Power

Impact of inflation on monthly
expenses of Rs. 30,000 today
96,214
Value of Rs. 100,000 over time
100,000
74,726
71,897
41,727
40,147
31,180
30,000
Today
5 years
15 years
20 years
Today
5 years
15 years
20 years
At inflation of 6%
Investors need to beat inflation
Yesterdays luxury - Todays necessity

Things which were not in our buying list 10 years before, but
they are common nowadays
Mobile,
LED,LCD television
AC
CAR
Foreign Trips
Electronic Gadgets
With Rise on Income Level and technological advancement many

more such things will get added into the list.
We All Have To Save
We All Need To Save For

Retirement
Childs Education
Childs Marriage
Medical Emergencies
Buying a House
Buying a Car
Saving for Vacation
Child Education Planning
Son/Daughters Marriage Planning
Retirement Planning
Brief Look At Our Future Cost

Child Education
Medical
: After 11 Yrs
: Rs. 34 Lac
Wedding of Child : After 16 Yrs

Marriage
: Rs. 43.7 Lac
Retirement
Retirement Kitty
: After 21 yrs
: Rs. 1.4 cr
3 Mantra For Achieving Your Goals Effectively
Sooner the Better

The longer you save, the more you make
Regular investment is the key

Even a small amount saved regularly,
is good
Invest wisely
This will dictate how much wealth
you create
Sooner The Better
TIMING THE MARKET IS NOT IMPORTANT GIVING TIME IS IMPORTANT

Sooner The Better
900
845
800
700
600
500
Amount Invested
400
272
300
Wealth Created
200
100
56
61
Mr Smart
Mr Relaxed
TIMING THE MARKET IS NOT IMPORTANT GIVING TIME IS IMPORTANT

Regular Investment Discipline Is The Key

350.0
313.0
300.0
250.0
Future Value of Rs
5000/- Invested
monthly
200.0
15 Years
20 Years
150.0
137.8
123.8
25 Years
100.0
66.4
47.8
45.7
50.0
17.0
26.6
30.8
0.0
8%
15%
20%
Amount in Graph is in Lacs

Invest Wisely
Helping You Achieve Your Goals In Life

How Much Monthly Investment Need to Achieve Your Goal
@ 8%
Child Education
Medical
: After 11 Yrs
: Rs. 34 Lac
@ 18%
Rs. 16419
Rs. 9051
Wedding of Child : After 16 Yrs

Marriage
: Rs. 43.7 Lac
Rs. 11516
Rs. 4559
Retirement
Retirement Kitty
Rs 22187
Rs. 6122
: After 21 yrs
: Rs. 1.4 cr
Not Investing in to Equity is more Risky

then Investing in to!!!!!!
Investing These much

Amount not possible
Invest Wisely
39,000
Fixed Deposit
36,000
Sensex
33,000
Sensex cum Dividend
Gold
35,420
If you had invested Rs. 100...
30,000
Nominal Value
27,000
24,000
21,165
21,000
18,000
15,000
12,000
9,000
4,085
6,000
Source: Bloomberg, MOAMC Internal Analysis. Data as on 31st October, 2013.
Oct-10
Apr-09
Oct-07
Apr-06
Oct-04
Apr-03
Oct-01
Apr-00
Oct-98
Apr-97
Oct-95
Apr-94
Oct-92
Apr-91
Oct-89
Apr-88
Oct-86
Apr-85
Oct-83
Apr-82
Oct-80
Mar-79
Oct-13
1,619
100
Apr-12
3,000
Invest Wisely
Equities significantly enhance purchasing power of portfolios
Inflation-adjusted returns of different assets
3,000
Sensex
Sensex cum Dividend
Gold
Fixed Deposit
2,175
If you had invested Rs. 100...
2,000
1,300
1,500
1,000
251
100
99
Apr-12
Oct-10
Apr-09
Oct-07
Apr-06
Oct-04
Apr-03
Oct-01
Apr-00
Oct-98
Apr-97
Oct-95
Apr-94
Oct-92
Apr-91
Oct-89
Apr-88
Oct-86
Apr-85
Oct-83
Apr-82
Oct-80
Oct-13
500
Mar-79
Purchasing Power
2,500
Invest Wisely
2014
258500
2.85 Crore
In past 35 years BSE Sensex has given approx. 17.53% returns

This is in spite of
Two wars
At least three major financial scandals
US Sub Prime and Recession
Assassination of 2 prime ministers
Subprime Crisis Global slowdown
*November, 2014
At least 3 recessionary periods

Twin Tower 9/11 Attack
10 different governments and
An unfair share of natural disasters
Attach on Parliament
Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in
future. Please read the offer document carefully before investing.
Challenges While Investing In Equity

CHALLENGES INVOLVED INVESTING
DIRECTLY IN CAPITAL MARKET
Time
Expertise
Lack of Information
Portfolio
Volatility
OR
PEOPLE DO COMMON
MISTAKE.
Believing in Hot Tips !!
Market Timing
Investing for a Short term
Expert Recommendation
Product oriented approach
Decision based on emotions
Solution
Benefits of Investing into SIP
How SIP Works
Time (Month) Amount Invested NAV (Per Unit Rs) Units Purchased
1
1,000
23
43.48
2
1,000
21
47.62
3
1,000
22
45.45
4
1,000
19
52.63
5
1,000
16
62.50
6
1,000
17
58.82
7
1,000
17
58.82
8
1,000
20
50.00
9
1,000
21
47.62
10
1,000
19
52.63
11
1,000
25
40.00
12
1,000
24
41.67
Total
12,000
601
Average NAV Per Unit over 12 months =

(21+21+22+19+16+17+17+20+21+19+25+24)/12
or Rs 20.34
Average Cost per unit over 12 months =

12000/601
or Rs 19.96
Average Cost Per Unit Will always be lesser than the Average NAV per Unit,
regardless of the market movements.
Source: Internal, hypothetical numbers for illustration purpose only
Equity Investment Is Like Growing A Chinese

Patience
is
the
Key
Bamboo
YEARS
You take a tiny seed, plant it and water it...you get a tiny
sampling.... nothing more
You water it, fertilize it.... the sampling stays as it is....

nothing happens
You continue to water it, take care of it...still nothing

happens
Against your better judgment, you need to continue to

water it, fertilise it... and still nothing will happen
To everyone's surprise, the tree sprouts and grows NINTY

feet in SIX weeks
What was going on in first Few Years?

The tiny sampling was actually developing its root system underground to
sustain its impending over the ground growth fifth year onwards.
Chinese Bamboo tree

tests your patience
If you had uprooted the sampling to see why it was not growing, it would die.
But if you were patient and had faith, you would witness the miraculous growth
later on
Equity Investment Is Like Growing A

Returns From Equities Are Not Constant
Chinese Bamboo
Equity Investment Is Like Growing A

Returns From Equities Are Not Constant
Chinese Bamboo
Equity
Investment
Is Like To
Growing
A Bamboo
SIP Returns
Similar
Chinese
Chinese Bamboo
Scheme Name
SIP of Rs 5000 per month
Birla Sun Life Equity Fund

Birla Sun Life Mid Cap Fund
DSP BlackRock Equity Fund
DSP BlackRock Small and Midcap Fund
DSP BlackRock Top 100 Equity Fund
HDFC Equity Fund
HDFC Growth Fund
HDFC Top 200
Kotak 50
Reliance Growth
Reliance Vision
Sundaram SMILE Fund
Tata Equity P/E Fund
3 Years Return as on 17th Aug. 13 Return of same till 30th Sept 2015
(SIP continued )
(SIP Stopped)
Total
Investment
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
180000
Value
171787
164416
166851
159774
179842
164718
165589
168967
176727
163569
153723
150503
163176
Total
Present
CAGR Investment Value(SIP)
-3.17
-6.11
-5.13
-8.00
-0.06
-5.98
-5.63
-4.28
-1.25
-6.45
-10.52
-11.89
-6.61
305000
305000
305000
305000
305000
305000
305000
305000
305000
305000
305000
305000
305000
Normally average Investor stops SIP after 3 or 5 years

if returns are not good or negative
504741
543052
447707
539340
412369
444222
409246
423371
453199
483541
447850
602969
485230
CAGR
19.91
22.88
15.09
22.60
11.82
14.78
11.52
12.86
15.58
18.18
15.10
27.17
18.32
Equity
Investment
Is Like To
Growing
A Bamboo
SIP
Returns
Similar
Chinese
SIP
Returns
Similar To Chinese Bamboo
Chinese
Bamboo
Scheme Name
SIP of Rs 5000 per month
Birla Sun Life Equity Fund

Birla Sun Life Mid Cap Fund
DSP BlackRock Equity Fund
DSP BlackRock Small and Midcap Fund
DSP BlackRock Top 100 Equity Fund
HDFC Equity Fund
HDFC Growth Fund
HDFC Top 200
Kotak 50
Reliance Growth
Reliance Vision
Sundaram SMILE Fund
Tata Equity P/E Fund
5 Years Return as on 17th Aug.13

(SIP Stopped)
Total
Investment
300000
300000
300000
300000
300000
300000
300000
300000
300000
300000
300000
300000
300000
Value
326814
330158
332700
344293
351504
344709
333513
343043
336806
319006
291942
291401
325948
CAGR
3.49
3.90
4.22
5.62
6.47
5.67
4.32
5.47
4.72
2.50
-1.11
-1.18
3.38
Return of same till 30th Sept

2015 (SIP continued )
Total Invest
ment
425000
425000
425000
425000
425000
425000
425000
425000
425000
425000
425000
425000
425000
Normally average Investor stops SIP after 3 or 5 years

if returns are not good or negative
Present
Value(SIP)
815494
913451
742021
965914
670771
771059
680040
714027
725096
790679
713781
988711
813063
CAGR
18.07
21.22
15.45
22.77
12.66
16.52
13.04
14.39
14.81
17.21
14.38
23.42
17.98
Equity
Investment
Is Like Growing A
SIP Returns
Summary
Chinese Bamboo
Particulars
15 Years 20 Years
Total Number of Schemes

Highest Return (%)
Lowest Return (%)
Average Return (%)
Schemes with 20% plus CAGR
52
26.05%
8.51%
19.18%
27
42
50
52
19
24.78%
11.16%
18.9%
8
14
18
19
All diversified equity funds which has completed 15 years

and 20 years respectively as on 30th Sep., 2015
LETS INVEST SYSTEMATICALLY

FOR THE SMOOTH AND WORRY FREE LIFE
THANK YOU

3 1-Sip

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SYSTEMETIC INVESTMENT PLAN

Various Stages of Life Cycle

Biggest Challenge In Savings

Fighting consumer inflation

Example of Consumer Inflation

Multiplex Ticket : Rs 250/-

Inflation Meter: 10.19%

Real Life Example

Inflation Robs Your Purchasing Power

Value of Rs. 100,000 over time

Yesterdays luxury - Todays necessity

With Rise on Income Level and technological advancement many

We All Have To Save

We All Need To Save For

Child Education Planning

Son/Daughters Marriage Planning

Brief Look At Our Future Cost

Wedding of Child : After 16 Yrs

3 Mantra For Achieving Your Goals Effectively

Sooner the Better

Regular investment is the key

Sooner The Better

TIMING THE MARKET IS NOT IMPORTANT GIVING TIME IS IMPORTANT

Sooner The Better

TIMING THE MARKET IS NOT IMPORTANT GIVING TIME IS IMPORTANT

Regular Investment Discipline Is The Key

Amount in Graph is in Lacs

Helping You Achieve Your Goals In Life

Wedding of Child : After 16 Yrs

Not Investing in to Equity is more Risky

Investing These much

Sensex cum Dividend

If you had invested Rs. 100...

Source: Bloomberg, MOAMC Internal Analysis. Data as on 31st October, 2013.

Sensex cum Dividend

If you had invested Rs. 100...

In past 35 years BSE Sensex has given approx. 17.53% returns

At least 3 recessionary periods

Challenges While Investing In Equity

Benefits of Investing into SIP

How SIP Works

Average NAV Per Unit over 12 months =

Average Cost per unit over 12 months =

Equity Investment Is Like Growing A Chinese

You water it, fertilize it.... the sampling stays as it is....

You continue to water it, take care of it...still nothing

Against your better judgment, you need to continue to

To everyone's surprise, the tree sprouts and grows NINTY

What was going on in first Few Years?

Chinese Bamboo tree

Equity Investment Is Like Growing A

Equity Investment Is Like Growing A

Birla Sun Life Equity Fund

Normally average Investor stops SIP after 3 or 5 years

Birla Sun Life Equity Fund

5 Years Return as on 17th Aug.13

Return of same till 30th Sept

Normally average Investor stops SIP after 3 or 5 years

Total Number of Schemes

All diversified equity funds which has completed 15 years

LETS INVEST SYSTEMATICALLY

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