Appetite

FUNDS SUITABLE FOR INVESTORS
WITH A LOW RISK APPETITE
WITH REAL EXAMPLES…
CONTENTS

TYPES OF MUTUAL FUNDS
 RISK CATEGORIZATION
 EXAMPLES
 CONCLUSION
 REFERENCE

Types of Mutual funds
• Equity growth (only in stocks)
• Debt income (only in fixed income assets)
• Money market (includi...
Risk Categorization
• Investors understand that their
principle will be at Low Risk.
• Investors understand that their
pri...
INVESTMENT OPTIONS
Real Examples



Rohith is 47 years old and is planning to do an investment of Rs.10,000/per month, for after retirement...
Features of SIP









Key Highlights:
An open-end income fund which seeks to provide regular income
and capital
ap...
Templeton India Corporate Bond Opportunities Fund
Key Highlights:

An open-end income fund which seeks to provide regular...
SIP-IF YOU HAD INVESTED Rs.5000 EVERY MONTH IN TISTIP…..

1 Year

3 Year

5 Year

7 Year

10 Year

Total Amount Invested
(...
SBI MAGNUM INSTACASH FUND - LIQUID FLOATER PLAN



SBI Magnum InstaCash Fund - Liquid Floater Fund
(SBIMICF- LFP) is a op...
Asset allocation
Instrument

Asset Allocation Risk Profile
(% of Net Assets)

Debt instruments (including Debt
derivatives...
SBI MAGNUM GILT FUND - SHORT TERM FUND




Safety - Zero credit risk
Gilt Fund will however be subject to interest rate ...
OBJECTIVES
To provide the investors/unit holders with returns generated through
investments in government securities issue...
FEATURES:Date of Inception

30/12/2000

Minimum Investment

Growth option - Rs. 5,000/Dividend options - Rs. 5,000/-

Entr...
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low risk appetite

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What are the funds suitable for investors with low risk?
Risk categorization, features, SIP, Case study, Examples.

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low risk appetite

  1. 1. Appetite FUNDS SUITABLE FOR INVESTORS WITH A LOW RISK APPETITE WITH REAL EXAMPLES…
  2. 2. CONTENTS TYPES OF MUTUAL FUNDS  RISK CATEGORIZATION  EXAMPLES  CONCLUSION  REFERENCE 
  3. 3. Types of Mutual funds • Equity growth (only in stocks) • Debt income (only in fixed income assets) • Money market (including gilt)-in short term money market instruments (including G-sec’s) • Balanced funds- partly in stocks and partly in fixed income securities (in order to maintain a balance in returns and risks
  4. 4. Risk Categorization • Investors understand that their principle will be at Low Risk. • Investors understand that their principle will be at Medium risk. • Investors understand that their principle will be at High Risk. Low risk Medium risk High risk
  5. 5. INVESTMENT OPTIONS
  6. 6. Real Examples   Rohith is 47 years old and is planning to do an investment of Rs.10,000/per month, for after retirement usage. What do we advice him? Check Inflation Investing Rs.10,000 per month in SIP for 10 years will create a corpus of around Rs.20.25 lakhs (assuming returns will be 10-15%). Equity 50% Debt 40% Gold 10%
  7. 7. Features of SIP      Key Highlights: An open-end income fund which seeks to provide regular income and capital appreciation through a focus on corporate securities. Opportunity to invest in the steadily developing corporate bond segment in India which is likely to offer attractive risk/reward prospects Attractive investment opportunity for investors with a medium to long-term investment horizon (ideally greater then 30months) and looking at opportunities to mitigate risks associated with the current volatility in fixed income markets Investors can potentially benefit from the prospect of capital appreciation over the long-term
  8. 8. Templeton India Corporate Bond Opportunities Fund Key Highlights:  An open-end income fund which seeks to provide regular income and capital appreciation through a focus on corporate securities.  Opportunity to invest in the steadily developing corporate bond segment in India which is likely to offer attractive risk/reward prospects  Attractive investment opportunity for investors with a medium to long-term investment horizon (ideally greater then 30months) and looking at opportunities to mitigate risks  associated with the current volatility in fixed income markets  Investors can potentially benefit from the prospect of capital appreciation over the long-term Features: Load Structure: Entry Load: Nil Exit Load: 0.50% if redeemed / switched out within 9 months of allotment date Minimum Investment: Retail: Rs. 5,000 and in multiples of Re.1
  9. 9. SIP-IF YOU HAD INVESTED Rs.5000 EVERY MONTH IN TISTIP….. 1 Year 3 Year 5 Year 7 Year 10 Year Total Amount Invested (Rs.) 60,000 180,000 300,000 420,000 600,000 Total Value as on June 30, 2013 (Rs.) 63,427 209,086 380,275 587,269 950,079 Returns 10.97% 10.03% 9.45% 8.91% 8.66% Total Value of 1 Year TBill 62,556 201,975 353,228 810,488 961,711 1 Year t-Bill returns 8.15% 7.67% 6.49% 6.20% 5.87% Total value of Crisil Short Term Bond Index 62,908 205,394 366,460 554,673 875,646 Crisil Short Term Bond Fund Index Returns 9.29% 8.81% 7.97% 7.84% 7.35%
  10. 10. SBI MAGNUM INSTACASH FUND - LIQUID FLOATER PLAN  SBI Magnum InstaCash Fund - Liquid Floater Fund (SBIMICF- LFP) is a open ended liquid scheme and the investments would be made in securities with maturity less than or equal to 91 days. The investments in the scheme would be made only in debt/ money market securities.
  11. 11. Asset allocation Instrument Asset Allocation Risk Profile (% of Net Assets) Debt instruments (including Debt derivatives) & money market instruments (including cash/C BLO/ Repo and equivalent) with a residual maturity in line with SEBI regulations Up to 100% Low to Medium Securitized debt Up to 20% Medium to High FEATURES:Date of Inception 01/10/2002 Minimum Investment Rs. 10000/- Entry Load N.A. Exit Load NIL SIP N.A. STP N.A.
  12. 12. SBI MAGNUM GILT FUND - SHORT TERM FUND   Safety - Zero credit risk Gilt Fund will however be subject to interest rate risk which is minimized by active duration management Under the Short Term Fund - Plan, the funds will be normally managed to a maximum average portfoliomaturity of three years. Key Benefit Safety of Investment – Zero credit risk Liquidity Ease of transactions Investments in smaller amounts
  13. 13. OBJECTIVES To provide the investors/unit holders with returns generated through investments in government securities issued by the Central Government and / or a State Government Instrument Asset Allocation (% of Net Assets) Risk Profile Government of India Dated Securities 100% Sovereign State Government Dated 100% Securities Low Government of India Treasury Bills Sovereign 100%
  14. 14. FEATURES:Date of Inception 30/12/2000 Minimum Investment Growth option - Rs. 5,000/Dividend options - Rs. 5,000/- Entry Load N.A. Exit Load C DSC – 0.15% for exit within 15 days for the date of investment. SIP For Growth & Dividend option Monthly - Minimum 1000 & in multiples of 1 thereafter for maximum six months (or) minimum 500 & in multiples of 1 thereafter for minimum one year. Quarterly – Minimum 1500 & in multiples of 1 thereafter for minimum one year. STP Rs. 500 per month or quarter.

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