mutual funds investing financial planning

1. WEALTH MAY GROW BY LEAPS AND BOUNDS
IF INVESTED STEP BY STEP
Start your Systematic Investment Plan (SIP)

2. WHEN THEY SAY TIME IS MONEY, THEY
MUST MEAN
SYSTEMATIC INVESTMENT PLANNING
TIME
MONEY

3. Life is a roller coaster ride.....
Full of ups and downs. We all know we have to save
for many responsibilities life brings along with it. But
no matter how much you save
It’s Never Enough!

4. Introduction
5

5. At inflation of 5%
If your current monthlyexpenses are
`30,000/- per month, then after 20 years you
will require `80,000/- a month to just
maintain the same lifestyle!
An education degree for your child which
currently costs `20 lakh could cost over
`34 lakh after 1
1years!
DID YOU KNOW?

6. All individuals need to save for
- Retirement
- Child’s education /
marriage
- Medical emergency
- Other family obligations
- Better lifestyle
Every individual has one or more of the above goals
RETIREMENT
INSURANCE
HOUSE
CAREER
EDUCATION
FAMILY
MARRIAGE
BIRTH
Individual investor needs: Investment goals

7. Individual Investor: Life Stages
Earnings (Consumption + Savings)
Consumption
Savings
22
Young Independent
27
Young Married
40
Middle Age
60
Retirement
All individuals have a finite period to save for their investment goals

8. All figures in Rs.; The above charts are only for illustration purposes and are based on an assumed rate of inflation of 5% p.a.
Impact ofinflation on monthly
expenses of ` 30,000 today
Value of` 100,000 over time
Today 5 years 15years 20 years
30,000
38,288
62,368
79,599
Today 5 years 15years 20 years
100,000
78,353
48,102
37,689
Value of Money Over Time
Investors need to beat inflation

9. Performance of Various Asset Classes
Source: CEIC, CMIE, Bloomberg, IIFL Research, *1-3 year deposit rate; ^excluding dividends; #based on data until Sep 2022.
Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
Cumulative annualised returns:
till CY2022#
Equities have outperformed other asset classes over the long term
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
INFLATION Bank FDs BSE Sensex Real Estate
Growth Real Growth

10. Individual investors are scared of …
The Downside
Risk in Equities
The Risk of
Market Volatility
The Risk of
Market Timing

11. 12
What else makes a material impact
on investments in equity?

12. Source: Internal; *XIRR, time period considered Jan 1980 to Sep 2018. Past performance may or may not be sustained in future and
should not be used as a basis for comparison with other investments.
Returns* are from Jan 1980 - Sept 2018
Fixed investment at Fixed investment at
lowest sensex value highest sensex value
every year every year
14.17%
14.79%
Investing in the BSE Sensex
Market timing does not matter over the long term

13. Investment Scenario A Investment Scenario B
Number of years 15 20
Monthly investment ` 5000 ` 5000
Total investment ` 9 lakh ` 12 lakh
Assumed annualised return 18% 18%
Final corpus ` 45.96 lakh ` 1.17 crore
Investing a small sum of money regularly in equity mutual funds can make your money work
with greater power and can have a significant impact on wealth accumulation.
The Power of Compounding
Even a seemingly small 5 year delay can cost you the ‘CROREPATI’ tag

14. Long Term Systematic Monthly
Investment In equity schemes
could be ideal for this !
Investors needs to save regularly
and invest those savings in higher
return assets to create wealth
The Power of Compounding

15. 16
How Do You Achieve Your
Financial Goals?

16. Retirement Planning
Today At the time
of retirement
Corpus required
per month
17
Monthly Household Expenses
Retirement corpus required to meet post
retirement expenses (if invested at 7%) : `1.4 cr
`30,000
Inflation 5%
21Yrs
`83,579
Monthly investment needed to achieve
this corpus in 21years
at 12%* ` 12,583
at 15%* ` 8,083
at 18%* ` 5,090
*Assumed rate of annualisedreturn
RETIREMENT

17. 18
EDUCATION
Present When your Childactually
goes for this degree
Monthly investment needed to achieve
this corpus in 1
1years
at 12%* ` 12,456
at 15%* `10,166
at 18%* ` 8,237
Corpus required
`34,20,000
Educational Degree for Child
Retirement corpus required to meet post
retirement expenses (if invested at 7%) : `1.4 cr
`20,00,000
Inflation 5%
1
1Yrs
*Assumed rate of annualisedreturn
Planning for Child’s Education

18. Planning for Child’s Marriage
MARRIAGE
Present When your Child
actually gets married
Monthly investment needed to achieve
this corpus in 1
1years
at 12%* ` 7,509
at 15%* ` 5,466
at 18%* ` 3,925
Corpus required
Child’s Marriage
Monthly investment needed to achieve
this corpus in 16years
`20,00,000
Inflation 5%
16Yrs
` 43,70,000
*Assumed rate of annualisedreturn

19. 20
What Are The Benefits Of
Investing Through Systematic
Investment Plan?

20. Benefits of Investing Systematically
The Benefit of Long Term EquityInvestment
- Equities could give superior returns among all asset classes over the long term
The Benefits of Systematic Monthly Investment
- Takes out the risk of market timing
- Adds the benefits of the rupee cost averaging and the power of compounding
RUPEE COST AVERAGING
- One doesn’t have to worry about when to invest, how much to invest etc considering
daily market movements, as systematic investing reduces the risks significantly
- Eliminates the need to time your investments in equities
- Smoothens the impact of market fluctuations and hence reduces risks of investing in
volatile markets
- The risk of market volatility gets negated with more units being purchased when the
Price is low and fewer units being bought when the Price is high

21. T i m e
(Months)
Amount
invested
N A V per
U ni t (`)
Units
purchased
1 1,000 23 43
2 1,000 21 48
3 1,000 22 45
4 1,000 19 53
5 1,000 16 63
6 1,000 17 59
7 1,000 17 59
8 1,000 2 0 50
9 1,000 21 48
10 1,000 19 53
11 1,000 2 5 40
12 1,000 2 4 42
Total 12,000 601
(23+21+22+19+16+17+17+20+21+19+25+24)/12
or ` 20.34
=12,000/601 or `19.96
Benefits of Investing Systematically: Rupee Cost Averaging
Source: Internal; Hypothetical numbers meant only for illustration purpose
Average Cost per Unit will always be lesser than the Average
NAV per Unit, regardless of the market movements

22. Benefits of Investing Systematically !
Flexibility
- You can choose from a wide array of schemes
- You can decide to keep invested amounts in an earlier scheme & invest future SIP installments
into a new scheme
Added Convenience
- No need to submit post dated cheques- Auto debit facility available across multiple locations
in India!
- Regular account statements
- Facility of direct credit of redemption/ dividend proceeds into your bank account

23. The first 4 steps to potential wealth creation
24
01
02
03
04
Select amutual
fund schemeof
your choice
Select the amountyou
can affordto invest
every month
Decide onthe
frequency with which
you will invest
Decide the lengthof
the investment period

24. 25
Calculations are based on assumed rate of return and actual return may be more, or less.
Monthly Investments
5 years
12% return per annum
10 years 15 years 20 years
25 years
2,000 1.65 Lacs 4.65 Lacs 10.09 Lacs 19.98 Lacs 37.95 Lacs
5,000 4.12 Lacs 11.62 Lacs 25.23 Lacs 49.96 Lacs 94.88 Lacs
10,000 8.25 Lacs 23.23 Lacs 50.46 Lacs 99.91 Lacs 1.90 Crore
15,000 12.37 Lacs 34.85 Lacs 75.69 Lacs 1.50 Crore 2.85 Crore
20,000 16.50 Lacs 46.47 Lacs 1.01 Crore 2.00 Crore 3.80 Crore
25,000 20.62 Lacs 58.08 Lacs 1.26 Crore 2.50 Crore 4.74 Crore
50,000 41.24 Lacs 1.16 Crore 2.52 Crore 5.00 Crore 9.49 Crore
Table Illustrating the power of compounding (Assumed rate of return: 12% p.a.)
Source: Internal
The Power of Compounding: Illustration A
Invest Systematically to Benefit from the Power of Compounding

25. 26
Calculations are based on assumed rate of return and actual return may be more, or less.
Monthly Investments
5 years
15% return per annum
10 years 15 years 20 years
25 years
2,000 1.79 Lacs 5.57 Lacs 13.54 Lacs 30.32 Lacs 65.68 Lacs
5,000 4.48 Lacs 13.93 Lacs 33.84 Lacs 75.80 Lacs 1.64 Crore
10,000 8.97 Lacs 27.87 Lacs 67.69 Lacs 1.52 Crore 3.28 Crore
15,000 13.45 Lacs 41.80 Lacs 1.02 Crore 2.27 Crore 4.93 Crore
20,000 17.94 Lacs 55.73 Lacs 1.35 Crore 3.03 Crore 6.57 Crore
25,000 22.42 Lacs 69.66 Lacs 1.69 Crore 3.79 Crore 8.21 Crore
50,000 44.84 Lacs 1.39 Crore 3.38 Crore 7.58 Crore 16.42 Crore
The Power of Compounding: Illustration B
Invest Systematically to Benefit from the Power of Compounding
Source: Internal
Table Illustrating the power of compounding (Assumed rate of return: 15% p.a.)

26. Investors are advised to consult their own legal, tax and financial advisors before making an investment
decision.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
THANK
YOU
MADE BY:-
YUVRAJ TRIVEDI
(AMFI REGISTERED MUTUAL FUND
ADVISOR)
8604801150
yuvrajtrivedi26102004@gmail.com