2. 2
Benefits of investingBenefits of investing in Mutual Fundsin Mutual Funds
* Professional management* Professional management
* Transparent and relatively safe; offers good liquidity; provides* Transparent and relatively safe; offers good liquidity; provides
diversificationdiversification
* Creation of long-term wealth – a retirement corpus* Creation of long-term wealth – a retirement corpus
* Goal-based planning, viz. purchasing a house, children’s education/marriage* Goal-based planning, viz. purchasing a house, children’s education/marriage
* Great investment opportunity / Limited capital investment* Great investment opportunity / Limited capital investment
* Investment as low as INR 500 / INR 1,000* Investment as low as INR 500 / INR 1,000
* Convenience and Flexibility* Convenience and Flexibility
* One of the best asset classes with ability to generate inflation-adjusted* One of the best asset classes with ability to generate inflation-adjusted
returnsreturns
* Tax benefit* Tax benefit
3. * Investing through Systematic Investment Plan* Investing through Systematic Investment Plan
(SIP)(SIP)
* Disciplined investment* Disciplined investment
* Advantage of rupee cost averaging* Advantage of rupee cost averaging
* Benefits of compounding* Benefits of compounding
3
Attraction for investment in Mutual FundsAttraction for investment in Mutual Funds
4. 4
An illustration of investing through SIPAn illustration of investing through SIP
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An investment of INR 2,000/- by way of an SIP every month hasAn investment of INR 2,000/- by way of an SIP every month has
potential to generate good returns provided it is considered for long-potential to generate good returns provided it is considered for long-
term.term.
(INR)(INR)
TenureTenure 10%10% 15%15% 20%20% 25%25%
10 years10 years
(INR 2.4 lacs)(INR 2.4 lacs)
4,13,1044,13,104 5,57,3155,57,315 7,64,7277,64,727 10,65,60910,65,609
15 years15 years
(INR 3.6 lacs)(INR 3.6 lacs)
8,35,8498,35,849 13,53,72613,53,726 22,68,59022,68,590 39,11,57039,11,570
20 years20 years
(INR 4.8 lacs)(INR 4.8 lacs)
15,31,39415,31,394 30,31,91030,31,910 63,22,95963,22,959 1,37,18,1901,37,18,190
25 years25 years
(INR 6 lacs)(INR 6 lacs)
26,75,78126,75,781 65,68,14765,68,147 1,72,53,4161,72,53,416 4,75,09,8834,75,09,883
5. Invest with a specific time-frame for achieving returns based
on goals.
Some examples
* Purchase of a house* Purchase of a house
* Planning a vacation* Planning a vacation
* Children’s higher education* Children’s higher education
* Wedding* Wedding
5
Goal-based investment
6. 6
Retirement corpus
* Start investing early in life to accumulate a large
corpus to enjoy the golden years. Equity Mutual Funds help in
combating inflation over the long-term.
* Young people will have an head-start if investments
are focused on equities till the age of retirement.
* Investment duration should be in excess of ten years to
achieve desired results. Compounding allows money grow in
later years. Staying invested is vital.
7. 6
Retirement corpus
* Start investing early in life to accumulate a large
corpus to enjoy the golden years. Equity Mutual Funds help in
combating inflation over the long-term.
* Young people will have an head-start if investments
are focused on equities till the age of retirement.
* Investment duration should be in excess of ten years to
achieve desired results. Compounding allows money grow in
later years. Staying invested is vital.