Wealth Creation for you and your Customers via SIPs

Where can one invest ??

Postal Savings RBI bonds / GOI bonds ( G secs ) PSU/ F I bonds - NHAI/ REC/ NABARD/ IDBI / ICICI etc Fixed Deposit - Bank / Co Shares & Stocks , Derivatives Commodities Real Estate

Key Investment Considerations

Liquidity Safety
Your money is managed by experts You get your money back when you want it

Plus Convenience
How easy is it to invest, disinvest and adjust to your needs?

Post-tax Returns
How much is really left for you post tax?

For the same liquidity - higher the safety, lower the returns For the same safety - higher the liquidity, lower the returns

Mutual Fund investments are subject to market risks Please read the offer documents carefully before investing.

MFs offer all of above

Liquidity Convenience Risk Diversification

Flexibility Transparency Regulated

Plus
Tax benefits

Tax Most Funds benefits Disclosure Most open allowing Mutual of ended funds switching Diversified Easy to Portfolio Funds redeem invest and portfolio between Capital are within funds. Gains easy to leads regulated NAV 1redeem working to risk declared by SEBI. day. From debt Tax-free control daily Dividends to equity etc.

Financial Planning for the future...

Income Phase I Phase II
Children s Marriage Child Education Housing

Phase III

Children Marriage 22 yrs 38 yrs Over 25 - 30 yrs

Birth & Education

22 yrs

Earning Years
60 yrs

Retirement

Age

Cost of Living
Items Colgate toothpaste
( 100 gm tube )

1987 ( Rs ) 8.05 3.05 3.50 7.99 56.15 225.00

1997 ( Rs. ) 18.90

( 8.91 % )

Hamam Soap Masala Dosa Petrol

( per litre )

7.85
( 9.92 % )

14.00
( 14.87 % )

25.48
( 12.30 % )

L P G Cylinder Zodiac mens shirt

137.85
( 9.40 % )

510.00
( 8.53 % )

Source : Readers Digest Nov 1997

Cost of Living
Items
Colgate toothpaste
( 100 gm tube )

1997 ( Rs )
18.90 7.85 14.00 25.48 137.85 510.00

2017 ( Rs. )
104.00 52.00 224.00 259.12 830.85 2620.27

Hamam Soap Masala Dosa Petrol

( per litre )

L P G Cylinder Zodiac mens shirt

Assuming inflation to grow at the same rate during 1987-97

INFLATION ROBS YOUR PURCHASING POWER (Assuming inflation @ 8% p.a.)

s. 10,000 today

217,200

100,600 46,600 21,500

10 years

20 years

30 years

40 years

Why equities are the best bet for long term. .

25% 20% 15% 10% 5% 0% Inflation -5% -1.57% Gold 0.55% Bank FD Company FD Equities 9.19% 9.74% 7.62% 5.28% 20.16% 14.47% 10.97%

real growth = growth - inflation

Source : RBI Report(1997-98) Analyzed on 15 Year Data

EQUITIES ARE THE BEST LONG TERM BET % OF STUDIED PERIOD IN WHICH Other investment outperformed

14% 44% 7%

Stocks outperformed
56% 6 % 86%

1 year

year

5 year

Source : RBI Report on Currency and Finance (1997-98) BSE Sensitive Index of Equity Prices - BSE

EQUITY = LOSS ?

SENSEX 1991-2006 IT IS UP 90 TIMES IN 26 YEARS ^

Source : Bloomberg

^ Since BSE Sensex Inception to June 13,2006

EQUITY = WEALTH

EARNINGS DRIVE RETURNS

COMPANY CAGR PAT PRICE YRS R a % % % y a y 5% % % 7% % H da 4 % % YRS % 8% % 7 % % % 4% % 45% 5%

INVESTING IS SIMPLE

SBI Bha I f Ra HLL ITC T H

ASK TWO QUESTIONS?

WILL THESE COMPANIES BE THERE TEN YEARS FROM NOW

IF YES,WILL PROFITS THEN BE HIGHER THAN TODAY?

HDFC

MUTUAL FUND = LOSS ?

Pru enti l ICICI Growt

Pl n 1999-2006

NAV IS UP 6 TIMES IN

YEARS

From J n 1,1999 to June 9,2006

P st per orm nce is not n in ic tor o

uture per orm nce. It m

or m

not be sust ine

in t e uture

MUTUAL FUND = LOSS

REMEMBER THE TECH FUNDS

Pru enti l ICICI Tec nolog Fun

P st per orm nce is not n in ic tor o

uture per orm nce. It m

or m

not be sust ine

in t e uture

MUTUAL FUND = LOSS

REMEMBER THE TECH FUNDS

Pru enti l ICICI Tec nolog Fun

P st per orm nce is not n in ic tor o

uture per orm nce. It m

or m

not be sust ine

in t e uture







 

ICICI Prudential Systematic Investment Plan A recurring deposit account with a mutual fund

What is an SIP?
Investing a fixed sum, regularly in a mutual fund Allows one to buy units in a particular scheme on a given date every month Similar to regular savings schemes like a recurring deposit

Benefits of Cost Averaging

90 80 70 60 50 40 30 0 Avg Cos Avg. Cos vs Nav s c inc p ion~ Nav(Rs.)

10 Jul-96 May-95 May-98 May-01 Ma -00 Aug-05 Aug-99 Nov-06 Nov-03 Dec-95 Dec-98 Ma -97 Ma -03 Jun-04 Oc -94 Oc -97 Oc -00 Jan-05 Ap -06

Jan-0

Aug-0

Past performance may or may not be sustained in future ~Assume a hypothetical investment of Rs.1000 every month in PruICICI Power since inception

An SIP reduces the average cost of investment in fluctuating markets

The above is for illustration purposes only

"

"

 

Lump sum investment vs. SIP

The direction of the markets is unpredictable.
Rs.80000 ested mpsum at ception in Pru ICICI Tech s. Rs.1000 invested ever month for 82 months) since inception 247329
280000 240000 200000 160000 120000 80000 40000 0 Nov-00 Nov-01 Nov-02 Nov-03 Nov-04 Nov-05 Mar 00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Nov-06 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06

107172

Performance of lump sum investment depends on the price at which they are bought

An SIP reduces these risks by spreading the investments over a longer period of time, at various levels of the market
The above is for illustration purposes only

Lumpsum Invstt

Sip Invstt

Past performance may or may not be sustained in future

SIP MAKES SENSE

FUND RETURN 0. SIP RETURN 36.29 MAR ,2000 TO JAN ,200

Pru enti l ICICI Growt

Pl n

&

P st per orm nce is not n in ic tor o

uture per orm nce. It m

or m

not be sust ine

in t e uture

'$

'$

%%

$ &

12000 8 7 6 5 6000 4000 2000 1 0 Apr 79 F b 80 Dec 80 Oc 81 Aug-82 Jun-83 Apr-84 Feb-85 Dec-85 Oc -86 Aug-87 Jun-88 Apr-89 Feb-90 Dec-90 Oc -91 Aug-92 Jun-93 Apr-94 Feb-95 Dec-95 Oc -96 Aug-97 Jun-98 Apr-99 Feb-00 Dec-00 Oc -01 Aug-02 Jun-03 Apr-04 Feb-05 Dec-05 Oc -06 0 4 3 2 10000 8000 Index Units b ught

Total amount invested as of Nov 06 : Rs.3,32,000 Mkt Value of investment as of Nov 01 06: Rs.74,56,554

90

14000

Sensible Equity Investing for Long Term

3 2 B
Rs. in este in ensex i IP on the first day of e ery month for months to No ember ' ) (from April '

87 655 3 41 B

1 000)

10 9

A @B @ @ @

SIP vs Lum Sum Investment

Returns on Lump Sum investment

Returns on SIP

Mutual Fund investments are subject to market risks Please read the offer documents carefully before investing. Past performance may or may not be sustained in future

ICICI Pru Dynamic Plan

Inception : Oct 2002 Diversified Equity Scheme Rs 10,000 Invested @ Inception : Today Rs 79,490 Rs 1000 invested as SIP since Inception : 59 Installments : Cost Value Rs 59,000 Todays Value : Rs 1,80,5 4 = 48 90% XIRR Retn

ICICI Pru Emerging Star Fund

Inception : Oct 2004 Diversified MID Cap fund Rs 10,000 Invested @ Inception : Today Rs 4,5 0 Rs 1000 Invested as SIP since Incpetion 6 installments : cost Value Rs 6,000 Todays Value : Rs 64,418 retn 44 11 % XIRR

ICICI Pru Infrastructure Fund

Inception : Aug 2005 Infrastructure Theme Fund Rs 10,000 invested @ inception : Today Rs 27,120 Rs 1000 invested as SIP since Inception : 25 installments : cost Value Rs, 25,000 Todays Value : Rs 8,09 = 48 10% XIRR Retn

Thank you Happy Investing