4. INVETORS POOL
THEIR MONEY
FUND MANAGER
INVESTS THEY MONEY
IN SECURTIES
INCOME DIVIDEND
GENERATED
INCOME IS
DISTRIBUTED AMONG
SHARE HOLDERS
5. • I don’t have enough money to invest
• I’m too busy making money to worry about
managing it.
• I don’t have the time or expertise to follow
market movements and make investments at
the right time
SYSTEMATIC INVESTMENT PLAN
is the only answer to all reasons.
6. SIP is an investment program that allows you
to contribute a fixed amount (as low as
Rs.1000 )in mutual funds at regular
intervals.
7. Inculcates the discipline to save and invest regularly
Negates the risk associated with market timings
Power of compounding
Rupee cost averaging
8. • SIP is an effective means to beat market volatility and benefits from the enormous power
of compounding over time.
Systematic
Investment Plan
Returns
Investment
scenario A
Investment
scenario B
Investment
scenario c
Number of years 5 years 10 years 15 years
Monthly
investment
Rs. 5000 Rs. 5000 Rs.5000
Total investment Rs. 300000 Rs. 600000 Rs. 900000
Assumed
annualized
return
18% 18% 18%
Final corpus Rs. 4.93 Lac Rs. 16.86 Lac Rs. 46.01 Lac
9. SIP-RUPEE COST AVERAGING
SIP INVESTORS LUMPSUM INVESTORS
MONTH UNIT PRICE INVESTMEN
T
UNITS
PURCHASED
INVESTMEN
T
UNIT
PURCHASED
1 50 1000 20 9000 180
2 47 1000 21
3 45 1000 22
4 44 1000 23
5 46 1000 22
6 48 1000 21
7 49 1000 20
8 50 1000 20
9 52 1000 19
Total investment 9000 9000
Total units purchased 188 180
Average unit price 48 50
10. The three golden rules for all investors
Invest early
Invest
regularly
Invest for
long term
Particulars Scenario A Scenario B
Start Age 25 years 40 years
Monthly Investment Rs.10000 Rs.10000
Stop Age 60 years 60 years
Total Investment Rs.42lacs Rs.24lacs
Savings to grow to Rs.6.5cr Rs.99.9lacs
11.
12. • Set your financial goals
• Identify the scheme
• Decide the SIP amount
• Look for a long term commitment
• Aim for the big picture
• Start investing
13. Long term wealth creation solution
A diversified equity fund that aims to generate
returns by investing in stocks with attractive
valuations.
Investment approach
Value based approach
Bottom-up approach with flexi cap exposure
Period Returns
(%)
1 year 12.4
2 year 11.1
3 year 19.9
5 year 16.2
14. Long term wealth creation solution
An equity fund that aims for growth by investing in equity
and derivatives
Investment approach
Uses in-house Price to Book Value Model
Uses derivative instruments for hedging or portfolio
rebalancing
Invests in Large Cap and Midcap Stocks
Period Returns
(%)
1 year 12.4
2 year 11.1
3 year 19.9
5 year 16.2
15. As on 30th June, 2016
Scheme NAV 1 Yr 3 Yrs 5 Yrs
Aggressive funds
ICICI Prudential
Balanced
97.25 6.69% 20.77% 15.40%
Birla sun life equity fund 313.24 6.25% 28.31% 15.08%
Kotak select focus fund 24.38 6.61% 24.41% 15.82%
Conservative funds
ICICI Prudential Value
Discovery Fund
119.87 5.48% 32.66% 19.74%
SBI Magnum Multi Cap
Fund
35.46 10.10% 26.17% 15.33%
HDFC Capital Builder
Fund
208.45 4.79% 22.44% 13.25%
