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Wealth Creation for you and your Customers via SIP’s.

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Presentation on theme: "Wealth Creation for you and your Customers via SIP’s."— Presentation transcript:

1 Wealth Creation for you and your Customers via SIP’s

2 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

3 Key Investment Considerations For the same liquidity - higher the safety, lower the returns For the same safety - higher the liquidity, lower the returns Safety Your money is managed by experts Liquidity You get your money back when you want it Post-tax Returns How much is really left for you post tax? Plus Convenience How easy is it to invest, disinvest and adjust to your needs? Mutual Fund investments are subject to market risks Please read the offer documents carefully before investing.

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

5 Birth & Education Earning Years Retirement 38 yrs 22 yrs Over yrs Housing Child Education Children’s Marriage Phase I Phase III Phase II Income Age Marriage Children 22 yrs 60 yrs Financial Planning for the future……...

6 Cost of Living Items1987 (Rs ) ‏ 1997 (Rs. ) ‏ Colgate toothpaste ( 100 gm tube ) ‏ ( 8.91 % ) ‏ Hamam Soap ( 9.92 % ) ‏ Masala Dosa ( % ) ‏ Petrol ( perlitre ) ‏ ( % ) ‏ L P G Cylinder ( 9.40 % ) ‏ Zodiac men’s shirt ( 8.53 % ) ‏ Source : Readers Digest – Nov 1997

7 Cost of Living Items1997 (Rs ) ‏ 2017 (Rs. ) ‏ Colgate toothpaste ( 100 gm tube ) ‏ Hamam Soap MasalaDosa Petrol ( perlitre ) ‏ L P G Cylinder Zodiac men’s shirt Assuming inflation to grow at the same rate during

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

9 Why equities are the best bet for long term. …. Source : RBI Report( )‏ Analyzed on 15 Year Data

10 EQUITIES ARE THE BEST LONG TERM BET % OF STUDIED PERIOD IN WHICH 56% 63% 86% 37% 14% 44% 1 year3 year5 year Other investment outperformed Stocks outperformed Source : RBI Report on Currency and Finance ( )‏ BSE Sensitive Index of Equity Prices - BSE

11 EQUITY = LOSS ? IT IS UP 90 TIMES IN 26 YEARS ^ SENSEX Source : Bloomberg ^ Since BSE Sensex Inception to June 13,2006

12 EQUITY = WEALTH

13  INVESTING IS SIMPLE  ASK TWO QUESTIONS?  WILL THESE COMPANIES BE THERE TEN YEARS FROM NOW  IF YES,WILL PROFITS THEN BE HIGHER THAN TODAY? EARNINGS DRIVE RETURNS

14 MUTUAL FUND = LOSS ? NAV IS UP 6 TIMES IN 8 YEARS Past performance is not an indicator of future performance. It may or may not be sustained in the future Prudential ICICI Growth Plan From Jan 1,1999 to June 9,2006

15 MUTUAL FUND = LOSS REMEMBER THE TECH FUNDS Past performance is not an indicator of future performance. It may or may not be sustained in the future Prudential ICICI Technology Fund

16 MUTUAL FUND = LOSS REMEMBER THE TECH FUNDS Past performance is not an indicator of future performance. It may or may not be sustained in the future Prudential ICICI Technology Fund

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

18 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 What is an SIP?

19 An SIP reduces the average cost of investment in fluctuating markets Benefits of Cost Averaging Past performance may or may not be sustained in future ~Assume a hypothetical investment of Rs.1000 every month in PruICICI Power since inception The above is for illustration purposes only

20 Lump sum investment vs. SIP The direction of the markets is unpredictable. Past performance may or may not be sustained in future An SIP reduces these risks by spreading the investments over a longer period of time, at various levels of the market Performance of lump sum investment depends on the price at which they are bought The above is for illustration purposes only

21 FUND RETURN –0.74 % SIP RETURN % MAR 7,2000 TO JAN 8,2004 SIP MAKES SENSE Past performance is not an indicator of future performance. It may or may not be sustained in the future Prudential ICICI Growth Plan

22 Sensible Equity Investing for Long Term Total amount invested as of Nov ’06 : Rs.3,32,000 Mkt Value of investment as of Nov 01 ’06: Rs.74,56,554

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24 Returns on Lump Sum investment Returns on SIP SIP vs Lump Sum Investment 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

25 ICICI Pru Dynamic Plan Inception : Oct 2002 Diversified Equity Scheme Rs 10,000 Inception : Today Rs 79,490 Rs 1000 invested as SIP since Inception : 59 Installments : Cost Value Rs 59,000 Today’s Value : Rs. 1,80,534 = 48.90% XIRR Retn

26 ICICI Pru Emerging Star Fund Inception : Oct 2004 Diversified MID Cap fund Rs 10,000 Inception : Today Rs.34,530 Rs 1000 Invested as SIP since Incpetion 36 installments : cost Value Rs 36,000 Today’s Value : Rs 64,418 retn % XIRR

27 ICICI Pru Infrastructure Fund Inception : Aug 2005 Infrastructure Theme Fund Rs 10,000 inception : Today Rs 27,120 Rs 1000 invested as SIP since Inception : 25 installments : cost Value Rs, 25,000 Today’s Value : Rs 38,093 = 48.10% XIRR Retn

28 Thank you Happy Investing


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