1) The document discusses the importance of starting investments early through systematic investment plans (SIPs) to benefit from the power of compounding over long periods of time.
2) Illustrations show that investors who start SIPs earlier and invest smaller amounts regularly over long periods can end up with significantly larger portfolio values than those investing lump sums later, despite contributing lower total amounts.
3) Delaying the start of investments, even by a few years, can result in missing out on substantial wealth creation due to compounding returns. Starting investments as early as possible, even in small amounts regularly, is critical to achieving long-term financial goals.
Re time tested_investment_strategies_for_the_long_termatul baride
This document provides information on long-term investment strategies. It discusses the benefits of staying invested through market ups and downs and avoiding attempts to time the market. While short-term losses are possible, historically the market tends to rebound and reward long-term investors. The document also notes that diversification across asset classes can help reduce risk and volatility.
The document discusses the benefits of systematic investment plans (SIPs) for long-term equity investing. It notes that SIPs take advantage of rupee cost averaging to reduce risk and benefit from the power of compounding returns. Regular monthly investments smooth out the impact of market volatility by purchasing more units when prices are low and fewer when they are high. Long-term equity investments provide superior returns compared to other asset classes. The benefits of SIPs include not having to time the market, automatically investing a fixed amount each period, and gaining convenience through auto-debit facilities.
This document discusses the benefits of systematic investment plans (SIPs) for achieving financial goals like retirement, children's education, and family commitments. SIPs allow investors to invest small monthly amounts that benefit from the power of compounding over the long term. Equity investments through SIPs are ideal for meeting long-term goals since equities have historically offered higher returns than other asset classes. Regular investing through SIPs also reduces market timing risk. The document provides examples of the monthly investments needed through SIPs to achieve common financial goals like retirement and children's education to demonstrate how SIPs can help investors achieve their goals.
The document summarizes various investment plans offered by SIP Capital Ltd., including short-term, mid-term, and long-term savings plans. The short-term plans have durations of 1 month and offer expected returns between 1.5-3% and 10-15% respectively. Long-term plans have a duration of 30 years and are aimed at goals like retirement planning and wealth creation, with expected returns of 15-20% annually turning an investment of Rs. 36 lakhs into Rs. 7 crores or Rs. 23 crores respectively over 30 years. SIP Capital Ltd. offers flexibility to choose from different investment amounts and plans.
Invest Online in Top Systematic Investment plans through RR FINANCE.IN. Online SIP is a method of investment planning of fixed sum. Plan today to be rich tomorrow with our Best SIP investment plans.
Systematic Investment Plan (SIP)-Smarter way to meet your financial goalsRR Finance
SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. 1000/-) in mutual funds at regular intervals. Please visit:- http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx
What is SIP? (Systematic Investment Planning) slideshareLatin Manharlal
Systematic Investment Plan (SIP) is an approach to investing small amounts at regular intervals rather than investing lump sum amount at one time.
Considered to be the safest way to invest into Equity Markets by going the SIP route, Investor is not trying to capture the Highs and lows of the market, but trying to average the cost by investing at regular interval.
Concept is that, When the markets fall investor gets more units. Likewise investor acquires lesser units when the market goes up. This means that investor buys less when the price is high and investor buys more when the price is low. Hence the average cost per unit falls down over a period of time.
Re time tested_investment_strategies_for_the_long_termatul baride
This document provides information on long-term investment strategies. It discusses the benefits of staying invested through market ups and downs and avoiding attempts to time the market. While short-term losses are possible, historically the market tends to rebound and reward long-term investors. The document also notes that diversification across asset classes can help reduce risk and volatility.
The document discusses the benefits of systematic investment plans (SIPs) for long-term equity investing. It notes that SIPs take advantage of rupee cost averaging to reduce risk and benefit from the power of compounding returns. Regular monthly investments smooth out the impact of market volatility by purchasing more units when prices are low and fewer when they are high. Long-term equity investments provide superior returns compared to other asset classes. The benefits of SIPs include not having to time the market, automatically investing a fixed amount each period, and gaining convenience through auto-debit facilities.
This document discusses the benefits of systematic investment plans (SIPs) for achieving financial goals like retirement, children's education, and family commitments. SIPs allow investors to invest small monthly amounts that benefit from the power of compounding over the long term. Equity investments through SIPs are ideal for meeting long-term goals since equities have historically offered higher returns than other asset classes. Regular investing through SIPs also reduces market timing risk. The document provides examples of the monthly investments needed through SIPs to achieve common financial goals like retirement and children's education to demonstrate how SIPs can help investors achieve their goals.
The document summarizes various investment plans offered by SIP Capital Ltd., including short-term, mid-term, and long-term savings plans. The short-term plans have durations of 1 month and offer expected returns between 1.5-3% and 10-15% respectively. Long-term plans have a duration of 30 years and are aimed at goals like retirement planning and wealth creation, with expected returns of 15-20% annually turning an investment of Rs. 36 lakhs into Rs. 7 crores or Rs. 23 crores respectively over 30 years. SIP Capital Ltd. offers flexibility to choose from different investment amounts and plans.
Invest Online in Top Systematic Investment plans through RR FINANCE.IN. Online SIP is a method of investment planning of fixed sum. Plan today to be rich tomorrow with our Best SIP investment plans.
Systematic Investment Plan (SIP)-Smarter way to meet your financial goalsRR Finance
SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. 1000/-) in mutual funds at regular intervals. Please visit:- http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx
What is SIP? (Systematic Investment Planning) slideshareLatin Manharlal
Systematic Investment Plan (SIP) is an approach to investing small amounts at regular intervals rather than investing lump sum amount at one time.
Considered to be the safest way to invest into Equity Markets by going the SIP route, Investor is not trying to capture the Highs and lows of the market, but trying to average the cost by investing at regular interval.
Concept is that, When the markets fall investor gets more units. Likewise investor acquires lesser units when the market goes up. This means that investor buys less when the price is high and investor buys more when the price is low. Hence the average cost per unit falls down over a period of time.
This document provides information about systematic investment plans (SIPs) and their benefits for long-term wealth creation and beating inflation. It discusses how SIPs allow regular investing in mutual funds to take advantage of rupee cost averaging and compounding returns. The document recommends choosing an equity mutual fund and investing a fixed amount each month for at least 10-20 years to benefit from SIPs and achieve long-term goals like retirement. It includes illustrations of how even small monthly investments can grow into large sums over time through the power of compounding returns.
Wealth creation through Mutual Fund SIPNimesh Dedhia
This document discusses how systematic investment plans (SIPs) can help create wealth over time through investments in mutual funds. It provides examples of the growth of hypothetical Rs. 1,000 monthly SIPs in several equity mutual funds over periods of 5, 10, and 15 years, demonstrating average annual returns ranging from 17.12% to 35.32%. Tables also illustrate the power of compounding returns over long periods from 20 to 30 years for Rs. 1,000 monthly investments at interest rates of 8-25%. The advisor's profile is given, showing over 15 years of experience in financial planning and serving over 300 mutual fund clients.
This document discusses the benefits of systematic investment planning (SIP) for building wealth through equity investments. Some key points made include:
- SIP allows regular small investments in equity mutual funds which benefit from rupee cost averaging and compounding over the long run.
- Equity returns have outperformed inflation, bank FDs, and gold over the past 15 years, making equity an important part of investment portfolios.
- To start an SIP, investors fill application forms, provide bank details for auto-debit, and choose a monthly or quarterly investment amount of minimum Rs. 500/1,000 respectively. Longer SIP periods of 5+ years further reduce risk while compounding enhances returns.
Systematic Investment Plan (SIP) is not a mutual fund scheme but a method of investing a fixed sum on a regular basis (monthly / quarterly), in a mutual fund scheme.
Systematic Investment Plan allows investors to buy units of a particular mutual fund scheme, irrespective of its price at regular intervals.
Investors can plan their savings through a structured regular program via SIP.
Benefits of SIP:
1. Disciplined Investing
2. Productive Spending
3. Power of compounding
4. Low minimum investment
5. Rupee cost averaging
6. Timing the market is not necessary
7. Aligned to financial goals
In conclusion, we would like to say that SIP is not a magical instrument but it can be turned into one with proper homework and planning before investing.
What is Wealth Creation Tool? The Answer is SIP-Systematic Investment Plan. Go through Presentation of SIP. and feel free to ask Question/Queries by marking mail to me on mebheda@gmail.com
The document discusses the benefits of starting regular investments early through systematic investment plans (SIPs). It notes that the average age of starting to earn is 25, retirement age is 60, and the average monthly savings potential is Rs. 5,000 for a middle-class household earning Rs. 15,000 per month. If investing Rs. 5,000 per month through SIPs starting at age 25, assuming annual returns of 20%, the investment would grow to Rs. 27 crores by retirement at age 60. The key messages are that regular investing allows one to benefit from rupee cost averaging and compounding returns over the long term.
This document discusses systematic investment plans (SIPs) offered by mutual funds. An SIP allows investors to invest small regular amounts instead of lump sums. Investments are usually made weekly, monthly, or quarterly, and investors can stop or modify contributions anytime. SIPs offer benefits like rupee cost averaging, regular investing discipline, and powerful long-term returns through compounding. The document provides examples and formulas to demonstrate these concepts. It also notes some disadvantages of SIPs and outlines the steps to start one. Overall, SIPs are positioned as an effective way for common investors to build wealth over the long run by managing risk from market fluctuations.
Systematic Investment Plan (SIP) allows investors to invest small periodic amounts in mutual funds on a weekly, monthly, or quarterly basis instead of lump sums. SIPs provide advantages like investing in equities and diversification which minimizes the risks of volatile markets. It also reduces the risks associated with market timing by having a professional fund manager.
SIP, or Systematic Investment Plan, allows investors to invest small amounts in mutual funds regularly by automatically debiting a specified amount from their bank account each month. This enables small investors to benefit from rupee cost averaging by investing during market ups and downs. The key advantages of SIP are that it is affordable for small investors, reduces market risk, provides compounding returns, and ensures consistent investments through an automated process without requiring market timing.
This document summarizes three mutual funds that investors should consider for SIP investments over a 5 year period:
1) ICICI Prudential Exports and Other Services Fund generated returns of 51.3% over 5 years and 23.8% annually, turning a Rs. 1,000 monthly SIP into Rs. 1,09,869.
2) Franklin India Smaller Companies Fund saw returns of 50.2% over 5 years and annual returns of 23.8%, growing a Rs. 1,000 SIP to Rs. 1,15,376.
3) Birla Sun Life MNC Fund's SIP grew to Rs. 1,20,511 over 5 years with returns of 70.6
Invest your money to achieve all your financial goals by following the simple route of systematic investment plan. Go through the ppt to see how it can help attaining the goals step by step without any hassles.
1) The document discusses the importance of starting to invest and plan for the future early. It notes that expenses do not decrease after retirement but may increase with medical costs and inflation.
2) An example is provided comparing two doctors who invested the same monthly amount but one started 30 years earlier than the other. The corpus of the early starter was over 10 times more than the late starter despite investing the same total amount.
3) Key points emphasized are starting early, investing regularly over the long term, and having investment goals to save for important life plans like retirement, children's education, housing, and more.
1) The document discusses various investment options for creating long-term wealth through systematic investment plans (SIPs). It provides examples of how different SIP amounts in mutual funds can grow substantially over time due to the power of compounding.
2) Various investment instruments are compared, including mutual funds, PPF, real estate, equity, gold, and their benefits and limitations are outlined. Long-term investing through SIPs is recommended for consistent returns rather than trying to time the market.
3) Starting investments early through SIPs is emphasized as the most effective way to achieve significant gains due to the long period for compounding to take effect.
The document discusses systematic investment planning (SIP) as a simple way to invest in equity and create wealth over the long term. It notes that equity returns have historically beaten inflation, and that starting investments early and allowing time and compounding to work for you can significantly grow wealth. Rather than trying to time the market, the document advocates a disciplined SIP approach through mutual funds. It provides details on how SIPs work, their benefits, and the process for enrolling in one.
Factsheet of Baroda Pioneer Mutual Fund- WishfinAnvi Sharma
The scheme aims to capture growth opportunities provided by large cap, mid cap & small cap companies with flexibility & discretion to invest upto 100% into equities while not exceeding 25% in debt and money market instruments.
SBI Equity Savings Fund: An Hybrid Fund By SBI Mutual Fund - Jul 2016SBI Mutual Fund
SBI Equity Savings Fund is best suited for an investor who wants to combine the potential for capital appreciation along with regular income & medium volatility. For more information on mutual funds check the SBI Mutual Fund website https://www.sbimf.com today!
Asit C Mehta Investment Interrmediates brings to you the reasons to save your money. Save for a better & secure future. “Getting Rich is not a function of investing a lot of money; it is a result of investing regularly for long periods of time.”
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that Valuations are reasonable for long term investments, Business Cycle has bottomed out, Trigger would be the trajectory of COVID-19 growth curve and vaccine development, Sentiments are negative since FPI flows are low and past returns have been muted. This suggests that it is a good time to accumulate equities and hold for long term.
SBI Magnum Equity Fund: An Equity Mutual Fund - Jul 2016SBI Mutual Fund
The document summarizes information about the SBI Magnum Equity Fund, a large-cap focused equity fund managed by SBI Funds Management. It provides details on the fund's investment strategy, portfolio characteristics, and performance. Specifically, it notes that the fund follows a top-down investment approach focusing on large cap stocks, has a concentrated portfolio of 25-40 stocks, and has outperformed its benchmark over various periods under the management of R. Srinivasan.
The document provides an overview of the mutual fund industry in India. It discusses the evolution of mutual funds in India from the establishment of Unit Trust of India in 1963 to the present scenario. Key developments include the entry of public sector funds in 1987, private sector funds in 1993, and the bifurcation of UTI in 2003. The document also defines what a mutual fund is, explains the working of mutual funds including the roles of various constituents like sponsors, trustees, asset management companies, custodians and more. It highlights the advantages of mutual funds like diversification, professional management, liquidity, and tax benefits. Finally, it touches upon the risk-return relationship with respect to mutual fund investments.
Systematic Investment Plan (SIP) is a financial planning tool that helps you to create wealth, by investing small sums of money every month, over a period of time. A Systematic Investment Plan (SIP) has been a vehicle offered by mutual funds to help investors invest regularly in a disciplined manner.
Features:
1. Diversified Allocation: Your funds are invested across various asset and equity classes providing you the right mix of risk exposure.
2. Low Cost: Mutual Funds charge less than 2.25% per annum as expenses which is way better than spending as high as 6% on ULIPs.
3. Professional Portfolio Management: With Mutual Funds, you get the assurance that your money is in the hands of professionals. You can get them to take up the cumbersome and tricky task of timing the market and deciding the right mix for investing your money.
4. Liquidity: Unlike ULIPs, one is not penalised for exiting a child mutual fund plan prematurely. In case one is in dire need of liquid money, one can always stop and exit which makes Mutual Fund SIPs highly liquid.
The best possible investment plan for your child's bright future is to invest in your child's education and taking all these factors into consideration, Mutual Funds are the best possible way which will help you give him that.
This document provides information about systematic investment plans (SIPs) and their benefits for long-term wealth creation and beating inflation. It discusses how SIPs allow regular investing in mutual funds to take advantage of rupee cost averaging and compounding returns. The document recommends choosing an equity mutual fund and investing a fixed amount each month for at least 10-20 years to benefit from SIPs and achieve long-term goals like retirement. It includes illustrations of how even small monthly investments can grow into large sums over time through the power of compounding returns.
Wealth creation through Mutual Fund SIPNimesh Dedhia
This document discusses how systematic investment plans (SIPs) can help create wealth over time through investments in mutual funds. It provides examples of the growth of hypothetical Rs. 1,000 monthly SIPs in several equity mutual funds over periods of 5, 10, and 15 years, demonstrating average annual returns ranging from 17.12% to 35.32%. Tables also illustrate the power of compounding returns over long periods from 20 to 30 years for Rs. 1,000 monthly investments at interest rates of 8-25%. The advisor's profile is given, showing over 15 years of experience in financial planning and serving over 300 mutual fund clients.
This document discusses the benefits of systematic investment planning (SIP) for building wealth through equity investments. Some key points made include:
- SIP allows regular small investments in equity mutual funds which benefit from rupee cost averaging and compounding over the long run.
- Equity returns have outperformed inflation, bank FDs, and gold over the past 15 years, making equity an important part of investment portfolios.
- To start an SIP, investors fill application forms, provide bank details for auto-debit, and choose a monthly or quarterly investment amount of minimum Rs. 500/1,000 respectively. Longer SIP periods of 5+ years further reduce risk while compounding enhances returns.
Systematic Investment Plan (SIP) is not a mutual fund scheme but a method of investing a fixed sum on a regular basis (monthly / quarterly), in a mutual fund scheme.
Systematic Investment Plan allows investors to buy units of a particular mutual fund scheme, irrespective of its price at regular intervals.
Investors can plan their savings through a structured regular program via SIP.
Benefits of SIP:
1. Disciplined Investing
2. Productive Spending
3. Power of compounding
4. Low minimum investment
5. Rupee cost averaging
6. Timing the market is not necessary
7. Aligned to financial goals
In conclusion, we would like to say that SIP is not a magical instrument but it can be turned into one with proper homework and planning before investing.
What is Wealth Creation Tool? The Answer is SIP-Systematic Investment Plan. Go through Presentation of SIP. and feel free to ask Question/Queries by marking mail to me on mebheda@gmail.com
The document discusses the benefits of starting regular investments early through systematic investment plans (SIPs). It notes that the average age of starting to earn is 25, retirement age is 60, and the average monthly savings potential is Rs. 5,000 for a middle-class household earning Rs. 15,000 per month. If investing Rs. 5,000 per month through SIPs starting at age 25, assuming annual returns of 20%, the investment would grow to Rs. 27 crores by retirement at age 60. The key messages are that regular investing allows one to benefit from rupee cost averaging and compounding returns over the long term.
This document discusses systematic investment plans (SIPs) offered by mutual funds. An SIP allows investors to invest small regular amounts instead of lump sums. Investments are usually made weekly, monthly, or quarterly, and investors can stop or modify contributions anytime. SIPs offer benefits like rupee cost averaging, regular investing discipline, and powerful long-term returns through compounding. The document provides examples and formulas to demonstrate these concepts. It also notes some disadvantages of SIPs and outlines the steps to start one. Overall, SIPs are positioned as an effective way for common investors to build wealth over the long run by managing risk from market fluctuations.
Systematic Investment Plan (SIP) allows investors to invest small periodic amounts in mutual funds on a weekly, monthly, or quarterly basis instead of lump sums. SIPs provide advantages like investing in equities and diversification which minimizes the risks of volatile markets. It also reduces the risks associated with market timing by having a professional fund manager.
SIP, or Systematic Investment Plan, allows investors to invest small amounts in mutual funds regularly by automatically debiting a specified amount from their bank account each month. This enables small investors to benefit from rupee cost averaging by investing during market ups and downs. The key advantages of SIP are that it is affordable for small investors, reduces market risk, provides compounding returns, and ensures consistent investments through an automated process without requiring market timing.
This document summarizes three mutual funds that investors should consider for SIP investments over a 5 year period:
1) ICICI Prudential Exports and Other Services Fund generated returns of 51.3% over 5 years and 23.8% annually, turning a Rs. 1,000 monthly SIP into Rs. 1,09,869.
2) Franklin India Smaller Companies Fund saw returns of 50.2% over 5 years and annual returns of 23.8%, growing a Rs. 1,000 SIP to Rs. 1,15,376.
3) Birla Sun Life MNC Fund's SIP grew to Rs. 1,20,511 over 5 years with returns of 70.6
Invest your money to achieve all your financial goals by following the simple route of systematic investment plan. Go through the ppt to see how it can help attaining the goals step by step without any hassles.
1) The document discusses the importance of starting to invest and plan for the future early. It notes that expenses do not decrease after retirement but may increase with medical costs and inflation.
2) An example is provided comparing two doctors who invested the same monthly amount but one started 30 years earlier than the other. The corpus of the early starter was over 10 times more than the late starter despite investing the same total amount.
3) Key points emphasized are starting early, investing regularly over the long term, and having investment goals to save for important life plans like retirement, children's education, housing, and more.
1) The document discusses various investment options for creating long-term wealth through systematic investment plans (SIPs). It provides examples of how different SIP amounts in mutual funds can grow substantially over time due to the power of compounding.
2) Various investment instruments are compared, including mutual funds, PPF, real estate, equity, gold, and their benefits and limitations are outlined. Long-term investing through SIPs is recommended for consistent returns rather than trying to time the market.
3) Starting investments early through SIPs is emphasized as the most effective way to achieve significant gains due to the long period for compounding to take effect.
The document discusses systematic investment planning (SIP) as a simple way to invest in equity and create wealth over the long term. It notes that equity returns have historically beaten inflation, and that starting investments early and allowing time and compounding to work for you can significantly grow wealth. Rather than trying to time the market, the document advocates a disciplined SIP approach through mutual funds. It provides details on how SIPs work, their benefits, and the process for enrolling in one.
Factsheet of Baroda Pioneer Mutual Fund- WishfinAnvi Sharma
The scheme aims to capture growth opportunities provided by large cap, mid cap & small cap companies with flexibility & discretion to invest upto 100% into equities while not exceeding 25% in debt and money market instruments.
SBI Equity Savings Fund: An Hybrid Fund By SBI Mutual Fund - Jul 2016SBI Mutual Fund
SBI Equity Savings Fund is best suited for an investor who wants to combine the potential for capital appreciation along with regular income & medium volatility. For more information on mutual funds check the SBI Mutual Fund website https://www.sbimf.com today!
Asit C Mehta Investment Interrmediates brings to you the reasons to save your money. Save for a better & secure future. “Getting Rich is not a function of investing a lot of money; it is a result of investing regularly for long periods of time.”
Our ‘VCTS’ framework (Valuations, Cycle, Trigger, Sentiments) is currently indicating that Valuations are reasonable for long term investments, Business Cycle has bottomed out, Trigger would be the trajectory of COVID-19 growth curve and vaccine development, Sentiments are negative since FPI flows are low and past returns have been muted. This suggests that it is a good time to accumulate equities and hold for long term.
SBI Magnum Equity Fund: An Equity Mutual Fund - Jul 2016SBI Mutual Fund
The document summarizes information about the SBI Magnum Equity Fund, a large-cap focused equity fund managed by SBI Funds Management. It provides details on the fund's investment strategy, portfolio characteristics, and performance. Specifically, it notes that the fund follows a top-down investment approach focusing on large cap stocks, has a concentrated portfolio of 25-40 stocks, and has outperformed its benchmark over various periods under the management of R. Srinivasan.
The document provides an overview of the mutual fund industry in India. It discusses the evolution of mutual funds in India from the establishment of Unit Trust of India in 1963 to the present scenario. Key developments include the entry of public sector funds in 1987, private sector funds in 1993, and the bifurcation of UTI in 2003. The document also defines what a mutual fund is, explains the working of mutual funds including the roles of various constituents like sponsors, trustees, asset management companies, custodians and more. It highlights the advantages of mutual funds like diversification, professional management, liquidity, and tax benefits. Finally, it touches upon the risk-return relationship with respect to mutual fund investments.
Systematic Investment Plan (SIP) is a financial planning tool that helps you to create wealth, by investing small sums of money every month, over a period of time. A Systematic Investment Plan (SIP) has been a vehicle offered by mutual funds to help investors invest regularly in a disciplined manner.
Features:
1. Diversified Allocation: Your funds are invested across various asset and equity classes providing you the right mix of risk exposure.
2. Low Cost: Mutual Funds charge less than 2.25% per annum as expenses which is way better than spending as high as 6% on ULIPs.
3. Professional Portfolio Management: With Mutual Funds, you get the assurance that your money is in the hands of professionals. You can get them to take up the cumbersome and tricky task of timing the market and deciding the right mix for investing your money.
4. Liquidity: Unlike ULIPs, one is not penalised for exiting a child mutual fund plan prematurely. In case one is in dire need of liquid money, one can always stop and exit which makes Mutual Fund SIPs highly liquid.
The best possible investment plan for your child's bright future is to invest in your child's education and taking all these factors into consideration, Mutual Funds are the best possible way which will help you give him that.
1) SIP provides benefits like rupee cost averaging, power of compounding, and avoiding attempts to time the market. Stories are used to illustrate these concepts in simple terms.
2) One story shows how disciplined, regular investing like SIP is better than sporadic efforts to get fit like the character who injured himself.
3) Another story demonstrates how averaging purchase costs over time through SIP can reduce losses from unexpectedly poor performance on one investment.
1) A mutual fund pools the savings of investors and invests it in securities like stocks and bonds. The money is managed by a fund manager on behalf of the investors.
2) There are different types of mutual funds categorized by maturity period and investment objectives, which determine the level of risk. Money market funds have the lowest risk while sectoral or index funds have higher risks.
3) Systematic investment plans (SIPs) allow investors to invest small regular amounts in mutual funds at fixed intervals like monthly or quarterly. This disciplined approach to investing can help achieve financial goals like saving for education or retirement over the long run.
The document summarizes various investment plans offered by SIP Capital Ltd., including short-term, mid-term, and long-term savings plans. The short-term plans have durations of 1 month and offer expected returns between 1.5-3% and 10-15% respectively. Long-term plans have a duration of 30 years and are aimed at goals like retirement planning, with expected returns of Rs. 69 lakh to Rs. 2.3 crore at 15-20% annual returns over 30 years. SIP Capital Ltd. offers flexibility to choose investment amounts and plans to suit different budgets and time horizons.
The document appears to show graphs of simulated Systemic Investment Plan (SIP) performance over time under varying market conditions. It shows how the amount invested, current value, market value, and average cost of units changes over periods of 25 installments. The graphs demonstrate that a SIP can help average out market volatility and costs over time.
SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves.
This document discusses the importance of systematic investment plans (SIPs) in money markets and capital markets. It notes that SIPs help investors benefit from rupee cost averaging, power of compounding returns, and maintaining consistent investments. SIPs allow investment in mutual funds and the money market, generating domestic resources and maximizing gains through automatic reinvestment and easy withdrawal. SIPs provide transparency, better returns, diversification, and risk management compared to lump sum investments. The document also analyzes Edelweiss and its competitors.
Global Edge Capital Management provides a summary of managed futures and their investment program. Managed futures aim to reduce portfolio risk through diversification and the potential for returns in various economic conditions. However, managed futures also carry higher costs, leverage risk, and liquidity risk compared to other investments. Global Edge implements a systematic trading program across over 100 futures markets using short, medium, and long-term strategies. They employ strict risk management with individual trade and sector exposure limits. The minimum investment is $200,000 with fees of 2% management and 20% performance.
Dominique Grandchamp: Gauging Institutional Interests and the Role of Regulat...marcus evans Network
Gauging Institutional Interests and the Role of Regulated Investment Funds in a Post Crisis World
Dominique Grandchamp Senior Investment Consultant, Mercer
GREATEST PLAN HAVE BEEN CREATED FOR SMART INVESTOR.
Forex and gold investment managed by GOLDFXMANAGER and YDC 100%. Combination of expertises to build giant company. Exclusive for first 500 investors.
Passive Plan:
Min invest: USD1000
Max invest: unlimited
Maximize your fund to 300% on all profit return just for a minimum of 15 months & your MONEY is GUARANTEED. Note : (10% Referral Bonus + 10% Referral's Monthly Interest Bonus)
Payment every 30 days
Interest Cash Out Monthly
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For 1st 5 months = 10% monthly
For 2nd 5 months = 20% monthly
BREAK EVEN at 8th month - THE REST WILL BE YOUR PROFIT
For 3rd 5 months = 30% monthly
Total Return is 300% per 15 mths and ability to make $$$ for referring others (10%).
• Can deposit and withdraw the money thru all the bank in the world (take 5-7 days for Wire Transfer or T.T – cheque)
Safe, Stable, Open, and Long Term Investment.
Marginal Efficiency Of Investment(Mei) Revised Feb 2011Gary Crosbie
This document provides an updated risk-adjusted analysis of different investment styles in bull and bear markets. The key findings are:
1) In growth markets, mid caps and international stocks provided the highest return per unit of risk (MEI). For mid caps, the MEI increased significantly in the updated analysis.
2) In recession periods, mid caps and mega caps generally provided the best risk-adjusted returns, with mid caps showing the highest MEI in two of the three recessions analyzed.
3) Monte Carlo simulations found that a 100% allocation to mid caps stocks has a 90% probability of achieving a 12% rate of return, higher than other styles analyzed.
Mansfield Capital Brochure Ppt Mar2009 1110Trader1mm
Mansfield Capital PowerPoint
presentation showing aggregate performance since 2003 with low-volatility program also shown separately. Note: due my institutional client going out of business last year, and for personal reasons, I took a year off off from trading even though I had top rated performance on risk-adjusted basis. Call or write for details. MansfieldCapital@Gmail.com, or 305-915-3307
This document discusses various methods of measuring risk, including variance, standard deviation, skewness, kurtosis, and the components of risk such as project-specific risk, competitive risk, industry risk, market risk, and international risk. It then discusses the capital asset pricing model (CAPM) and how it uses beta to measure non-diversifiable risk and translate that into an expected return. The document provides an example of estimating beta for Disney stock.
This document provides an overview and agenda for a presentation on successful planning strategies for life and investments. It discusses Barry Mendelson's background and experience in financial services. It also summarizes Just Plans Etc., the firm he founded, which provides financial planning and investment management. The presentation agenda covers investment planning, personal planning, and charitable giving strategies.
Marginal Efficiency Of Investment(Mei) Revised Feb 2011Gary Crosbie
This document provides an updated risk-adjusted analysis of different investment styles in bull and bear markets through 2010. The main findings are:
1) Mid caps provided the highest risk-adjusted returns (Marginal Efficiency of Investment or MEI) overall and during recessions, followed closely by mega caps.
2) Monte Carlo simulations showed a 90% probability that a 100% allocation to mid caps would yield an 11.97% return with a 5.7% standard deviation, the highest combination of returns and lowest risk.
3) While international investments showed strong past growth, more data is needed due to higher volatility and smaller sample size to evaluate sustainability. A 5-15% weighting is recommended depending on
This document defines key concepts related to capital markets, including savings, investment, interest rates, and present value. It discusses how personal savings in the US equals 3.5% of personal income based on National Income and Product Accounts (NIPA) data. Interest rates are defined as the relative price of current versus future income. Different factors like risk and expected inflation determine the shape of the yield curve. Real interest rates can be negative if inflation is high. Present value calculations discount future cash flows to reflect time value of money.
The document provides an overview of FundX Investment Group, which uses an "Upgrading" strategy to invest client funds in the best performing mutual funds. It discusses the current bull market environment and perspectives on stocks, bonds, and alternatives. It emphasizes having realistic return expectations and using discipline like rebalancing to achieve long-term investment success. Contact information is provided to learn more about FundX's newsletter, mutual funds, and private account services.
This document discusses the importance of risk management for businesses. It begins by asking questions about how the recipient would respond if asked about their risk management plan. It then provides an overview of risk management and discusses how it has become more essential given increased volatility in markets. The document outlines steps to develop a risk management plan, including defining margins, studying historical data, testing scenarios, setting targets, and executing and monitoring the plan. It emphasizes managing risk in a proactive, disciplined manner aligned with business objectives. In the closing, it stresses that having a clear risk management plan is necessary to properly manage resources and allow for business planning.
The Arbitrage Pricing Theory (APT) provides an alternative to the Capital Asset Pricing Model (CAPM) for estimating expected returns. The APT assumes returns are generated by multiple systematic risk factors rather than a single market factor. It allows for assets to be mispriced and does not require assumptions of a market portfolio or homogeneous expectations. Under the APT, the expected return of an asset is equal to the risk-free rate plus the product of each risk factor's premium and the asset's sensitivity to that factor.
This document discusses the concept of error terms in investment returns and strategies. It makes three key points:
1) Even portfolios with identical exposures to risk factors like market, size, and value will experience random variation in returns over time due to residual error from differences in underlying security holdings. This error averages to zero over the long run.
2) Tax-managed investment strategies will differ in returns from benchmarks, but offer higher after-tax returns justifying the tracking error. Maximum annual deviations were 2.3% overperformance and 1.3% underperformance.
3) The Fama-French multifactor model helps investors manage systematic risk factors rather than focus on arbitrary benchmarks or short-term noise in
This document describes a systematic investment strategy called CIME that trades futures contracts across various commodities, currencies, interest rates, and equity indexes. CIME uses a combination of fundamental and quantitative factors to determine entry and exit points, and employs strict risk management techniques like stop losses and position sizing limits. Backtested hypothetical performance results are provided showing annual returns of 15-22% for different versions of the strategy over the period from 2007 to 2012. However, the document strongly cautions that past performance is not indicative of future results and futures trading involves substantial risk of loss.
The document discusses the importance for retirees and income investors to understand the difference between yield and return when investing for income. It explains that yield refers to the cash generated from an investment, while return includes changes in the value of the capital. The document cautions that investors need to ensure the income withdrawn from investments is actual cash generated rather than a return of capital, and that liquidity is available when needed. It provides a real estate example to illustrate how yield and return can differ, and stresses the importance of protecting long-term financial well-being.
How do investors pick the winning asset class? What is the importance of asset allocation and how do you build an effective asset allocation strategy? Through this deck, find answers to the benefits of equity, debt and gold assets and how does one select mutual funds to fulfill long term goals.
www.Quantumamc.com
The document provides 10 tips for investing:
1) Focus on asset allocation over selecting individual funds or shares.
2) Define clear investment goals and understand your risk tolerance.
3) Be aware of fees and costs which can significantly impact returns.
4) Most actively managed funds do not outperform their benchmarks due to high costs, so index funds are generally better.
5) Avoid following the crowd and buying high after markets rise or selling low when they fall.
6) Diversify across different types of investments to reduce risk.
7) Different markets will perform differently so a balanced portfolio is important.
8) Stay invested for the long term to benefit from
The document provides 10 tips for investing:
1) Focus on asset allocation over selecting individual funds or shares.
2) Define clear investment goals and understand your risk tolerance.
3) Be aware of fees and costs which can significantly impact returns.
4) Most actively managed funds do not outperform their benchmarks due to high costs, so index funds are generally better.
5) Avoid following the crowd and buying high after markets rise or selling low when they fall.
6) Diversify across different types of investments to reduce risk.
7) Different markets will perform differently so a balanced portfolio is important.
8) Stay invested for the long term to benefit from
The document summarizes the concept of call money in the Indian money market. Call money refers to short-term borrowing and lending of funds between banks on an overnight or short notice basis. Banks use the call money market to meet temporary mismatches in their daily cash flows. Interest rates on call money, called the call rate, indicate short-term liquidity conditions and influence monetary policy decisions by the Reserve Bank of India.
This document provides an overview of tax rates and implications for mutual funds in India for the 2014-15 fiscal year. It outlines the tax rates for different types of mutual funds on distributed income and capital gains at both the scheme and unitholder level. It also summarizes tax rates for individuals, companies, and non-residents on capital gains and dividends from equity and debt-oriented mutual fund schemes.
Hdfc amc tax reckoner 2014 15 - version 3 finalsudhanshuarora1
- The document provides tax rates and implications for the financial year 2014-15 in India for various types of investments including dividends, capital gains, and securities transaction tax for mutual funds.
- Key tax rates for individuals include no tax on long-term capital gains from equity investments and 15-30% tax on other income depending on amount. Tax is also levied on dividends from mutual funds at applicable rates.
- Tax rates for corporate entities range from 15-33% for short and long-term capital gains as well as dividends, with some variations based on type of company and investment.
The document outlines assumptions of 5% inflation and a 30.9% tax rate for the highest tax bracket. It notes that the value and price of fund units will increase as the value of underlying securities rises. Investors can profit from selling units at a higher price than they paid, though funds do not guarantee the same. The unit price will fall when dividends are paid out, reducing the fund value by the dividend amount. It provides an assumed 8% annual return only as an example and notes mutual funds carry market risk.
Warren Buffett, the second richest man in the world who has donated $31 billion to charity, emphasizes living simply and avoiding unnecessary spending. He still lives in the modest house he purchased over 50 years ago and drives his own car. Buffett also stresses the importance of starting to invest early, assigning the right people to their roles, and focusing on clear goals rather than lavish displays of wealth or status.
The document provides information on various investment options and their benefits, risks, and suitability. It discusses that mutual funds offer market-linked returns, professional management, diversification, and liquidity. Mutual funds allow small investors to participate in capital markets while mitigating risks like lack of expertise, time, capital, and information. The document compares mutual funds favorably against other assets in terms of returns, risks, tax benefits, and convenience. It outlines how to select mutual funds based on goals and risk tolerance as well as the benefits of systematic investment plans.
The document introduces the ICICI Prudential US Bluechip Equity Fund, an open-ended equity scheme. It discusses reasons for investing in the US market such as access to established global industries and leaders not available in India, diversification benefits, the size and scale of the US equity market, and prominent US brands. The US offers opportunities due to positive leading economic indicators like falling unemployment and continuing jobless claims. Investing now allows participation in the recovery of the US economy.
Dsp black rock_us_flexible_equity_fund_nfo_presentation3sudhanshuarora1
The document provides information on the DSP BlackRock US Flexible Equity Fund NFO period from July 17, 2012 to July 31, 2012. It discusses why US equities are an attractive investment option due to access to the largest equity market in the world, resilience of the US economy, and attractive valuations. It highlights that the BGF US Flexible Equity Fund portfolio is well positioned and managed by BlackRock, the world's largest asset management company.
Mistake #9: Not being willing to pay for professional financial advice. Many people rely only on free online advice rather than paying an expert to analyze their unique situation and recommend tailored solutions. While general advice can help, professional guidance may be needed for complex financial decisions. Not paying for expert advice can lead to missed opportunities or mistakes that end up costing more in the long run.
The Reserve Bank of India cut its repo rate by 50 basis points to 8% and announced other monetary measures to boost the economy. It forecasts GDP growth of 7.3% for fiscal year 2013 assuming normal monsoons, but expects inflation to remain in the 6.5% range. Equity markets rose in response to the rate cut and bond yields declined, while the banking sector did not see major gains due to some policy measures that may negatively impact margins. The central bank maintained a cautious stance and signaled low probability of further rate cuts in the near term.
Reliance Mutual Fund is launching India's first gold fund of fund scheme. The scheme will invest in gold exchange traded funds (ETFs) and is the first SIP enabled gold investment product in India. The NFO opening date is February 14, 2011 and closing date is February 28, 2011. The scheme aims to address problems with directly investing in gold in India by providing exposure to gold through mutual funds.
The document provides an overview of key concepts related to fixed income investments, including:
1) It describes the basic structure of a bond, including the issuer, maturity date, coupon payments, principal, and par value.
2) It explains bond ratings and the different rating scales used by agencies like CRISIL and ICRA to classify bonds based on their credit risk.
3) It covers yield calculations including yield to maturity and the concept of current yield, as well as factors that influence the yield curve and term structure.
4) It outlines various types of risk associated with fixed income investments like credit risk, interest rate risk, reinvestment risk, liquidity risk, and how these risks
The document discusses Century SIP, which is a systematic investment plan (SIP) that provides free life insurance cover. Some key points:
1) Century SIP provides life insurance cover of 10-100 times the monthly SIP installment amount, depending on how long the SIP has been active.
2) The life insurance is provided free of cost to the investor by the AMC.
3) Investors need only fill out a simple health declaration, with no medical exams required.
4) The life insurance cover continues even if the SIP is discontinued after 3 years.
The document discusses equity investing and ownership of businesses. It provides examples of how investing modest amounts in certain companies over long periods of time, taking advantage of compounding returns, can result in substantial wealth growth. For instance, investing Rs. 10,000 in Wipro, Cipla, or Infosys decades ago would be worth Rs. 330 crore, Rs. 82 crore, or Rs. 26 crore today due to share price appreciation and stock splits or bonuses over time. The key factors that drive long-term share price growth are a company's sustained profit growth and rising earnings per share.
Debt refers to borrowing money that is owed to another party. Key features of debt instruments include coupon rate, principal amount, and tenure. The price of a bond and its yield are inversely related. Factors like interest rate changes, credit risk of the issuer, and reinvestment risk upon maturity affect debt investments. Government securities, corporate bonds, money market instruments form the key components of the Indian debt market.
Government securities (G-Secs) are debt instruments issued by the Indian government to fund its fiscal deficit. There are two main types: treasury bills for short-term borrowing of less than 1 year, and government bonds or dated securities for long-term borrowing of 1 year or more. G-Secs are issued via auction on the NDS platform and traded on a yield basis. Major players are banks, primary dealers, and institutional investors like insurance companies. The Clearing Corporation of India acts as the central counterparty for all G-Sec transactions.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
2. Savings v/s Investments
Savings = Income – Expenditure
Investments = Savings + (Savings X Returns)
Inflation cannot be avoided but its impact can be minimised with prudent investment planning
3. How to be your own investment counselor
– Dick Fabian
Evidence shows that investors - investors in anything – make no money over a
10 year period. There are several reasons for this tragic statistic, including:
1. Not setting a goal
2. Chasing trendy investments
3. Relying on reports from the financial press
4. Blindly taking advice from brokers or financial planners
5. Making emotional mistakes and so on
Without a clear cut investment plan, you will fail eventually
4. Why do we save money?
The future is uncertain
Cost of living (education, marriage) is rising - INFLATION
Needs and aspirations are increasing – better housing, vehicles, holidays abroad
It is not possible to continue working for long hours beyond a certain age…time
to sit back and make your money work for you, essentially retirement planning
5. Options You Have Checked Out
Gold
Fixed Income
Confusion
Equities
6. How good is the money you invest in
fixed income securities?
8
7
6
You are losing your
5 purchasing power!
4
3
2
1
0
Interest Rate Less Inflation Less Tax Post Tax and Inflation
-1 8% 5.5% 2.72% -0.22%
Instrument under consideration – 8% taxable Bonds
1 year average inflation rates assumed at 5.5%
Assuming highest tax rate.
7. Cumulative annualised returns of different asset classes
(1985 – 2010*)
Equity 16.7
G Sec 10.8
Bank FD 10.1
Gold 9.4
Inflation 6.5
(% Annualized returns)
0.0 5.0 10.0 15.0 20.0
Over time, a portfolio of well chosen stocks is likely to outperform other asset classes
But equities are more risky …
*Returns till October 31, 2010
Source: CLSA
8. The voting machine & the weighing scales
(short term volatility & long term returns)
Source Data: www.bseindia.com
Past performance of the SENSEX may or may not be sustained in the future .
Note: The base year of the SENSEX is 1978-79 and the base value is 100. Please visit
www.bseindia.com for the SENSEX calculation methodology.
9. Voting Machine and Weighing Scale
1-Year 5-Years 10-Years 15-Years
Max Returns 267% 53% 35% 27%
(March 1992) (March 1992) (March 1992) (March 1994)
Min Returns -47% -5% -2% 6%
(March 1993) (March 1997) (March 2002) (March 2009)
Average Returns 28% 18% 18% 18%
Loss Probability 10/29 3/25 1/20 0/15
To conclude, the longer you remain invested:
1. Lower is the probability of loss
2. The volatility of returns reduces
3. The returns from equities become predictable and is equal to earnings growth plus dividends
Source Data: www.bseindia.com, Internal Calculations
Past performance may or may not be sustained in the future.
10. Equities – An Asset Class worth
considering
Equities, while being volatile and extremely unpredictable over short periods of
time, tend to be a prudent investment over longer time horizons
Over the long run equity returns tend to track underlying fundamentals and are
determined by the following factors:
The dividend yield at the time of initial investment
The subsequent rate of growth in earnings
The change in the price – earnings ratio during the period of investment
The total of these three components explains nearly all of the stock
market returns over extended holding periods
Source: Common Sense on Mutual Funds, John C. Bogle
11. Sensex growth and profit growth
BSE Sensex - Profit growth versus Index growth
3,000.00
Profit growth vs index growth
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
Mar-89
Mar-90
Mar-91
Mar-92
Mar-93
Mar-94
Mar-95
Mar-96
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Year
Profit growth Sensex grow th
Source : DSP Merrill Lynch & Motilal Oswal Securities FY10 – As on March 31, 2010.
12. Avoid ‘Decision Paralysis’
Stop worrying about market fluctuations
Start thinking about your goals and the time you have to achieve them
Get invested into a mutual fund and benefit from portfolio diversification
Focus on long term investing – short term thinking is the enemy of long term
investment success
Have reasonable return expectations
Enroll for SIP – A disciplined approach
Take advantage of the ups and downs in the market
14. What is Rupee Cost Averaging (RCA)
RCA refers to an investment technique intended to reduce exposure to risk
associated with making a single large purchase
Invest a fixed amount at regular intervals (e.g. monthly) regardless of the
market levels. In this way more units are purchased when prices are low and
fewer units are purchased when prices are high
Limits / avoids the worst case scenario of an immediate drop in asset value after
a lump sum investment
Investors can expect a reduction in variance in performance by implementing
rupee cost averaging
15. Systematic Investment Plan
A Graphical Illustration
Identical amounts invested through a SIP and in one lumpsum. Investor A starts investing ` 1,000 every month in an equity mutual
fund scheme starting in January. Investor B invests ` 12,000 in one lump sum in the same scheme
Investor A Investor B
Month NAV* Amount Units Amount Units
(`) (`) (`)
January 16.240 1,000 61.5764 12,000 738.9163
February 16.266 1,000 61.4779
March 15.123 1,000 66.1244
April 15.266 1,000 65.5050
May 16.845 1,000 59.3648
June 16.991 1,000 58.8547
July 15.501 1,000 64.5120
August 15.114 1,000 66.1638
September 12.774 1,000 78.2840
October 13.848 1,000 72.2126
November 14.566 1,000 68.6530
December 15.111 1,000 66.1770
Total 12,000 788.906 12,000 738.916
*NAV as on the 10th of every month. These are assumed NAVs in a volatile market.
Disclaimer: The illustration above is merely indicative in nature and should not be construed as investment advice. It
does not in any manner imply or suggest current or future performance of any HDFC Mutual Fund Scheme(s). SIP
neither ensures profits nor protects you from making a loss in declining markets.
16. Systematic Investment Plan
A Graphical Illustration (Continued)
As seen in the table, by investing through SIP, you end up buying more units when the price is low
and fewer units when the price is high. However over a period of time these market fluctuations
are generally averaged and the average cost of your investment is often reduced.
18 16.991
16
14
12 12.774
When the price is the
10 When the price is the
lowest, you buy the
highest, you buy the
8 least number of units highest number of units
6
4 58.854 78.284
units units
2
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
17. Systematic Investment Plan
A Graphical Illustration (Continued)
At the end of the 12 months, Investor A has more units than Investor B, even
though they invested the same amount
That’s because the average cost of Investor A’s units is lower than that of
Investor B
Investor B made only one investment and that too when the per unit price was
high
Investor A’s average unit price = 12,000 / 788.905 = ` 15.211
Investor B’s average unit price = 12,000 / 738.916 = ` 16.240
18. Benefits of Systematic Investing
Disciplined investments (Remember, an investor’s worst enemy is not the stock
market, but his own emotions)
Reach your financial goals
Take advantage of Rupee Cost Averaging
Grow your investments with compounded benefits
Do all this effortlessly
19. Steps to financial success…
Invest regularly
Start early
Control consumption and exercise self control
Benefit from power of compounding
20. Consider the following situation:
Four friends plan to save and invest for retirement at the age of 60
Due to their individual circumstances, cash flows etc. each of them start saving
at different periods of time / ages
The following table illustrates their investment decisions and outcomes…
21. Starting early matters!
An Illustration
Particulars Option 1 Option 2 Option 3 Option 4
Amount invested 1,000 1,000 1,000 1,000
p.m. (`)
Starting age 20 30 35 40
(Years)
Investment for 40 30 25 20
years
Assumed Rate of 12% 12% 12% 12%
Return p.a.
Total Amount 4,80,000 3,60,000 3,00,000 2,40,000
invested
(`)
Maturity amount at 1,18,82,420 35,29,914 18,97,635 9,99,148
60
(`)
Disclaimer: The above investment simulation is for illustration purpose only and should not be construed as a promise
on minimum returns and safeguard of capital. HDFC Mutual Fund / HDFC Asset Management Company Ltd. Is not
guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against loss in
a declining market. It does not in any manner imply or suggest current or future performance of any HDFC Mutual Fund
Scheme(s)
22. The power of compounding
Illustration (Cont’d)
Maturity amount at age 60 – Figures in Lacs
140
119
120
100
Starting late earned you 12 times
80 less wealth!!
60
40 35
19
20
10
0
Option 1 Option 2 Option 3 Option 4
Investment Options
23. Consider another situation
An Illustration
Four investors start investing in the S&P CNX Nifty on the 1st business day of each month at different periods
of time.
Start Date Amount Invested Per month (`)
Investor A March 1, 1993 5,000
Investor B January 1, 1999 7,500
Investor C December 3, 2001 10,000
Investor D November 1, 2004 15,000
24. On September 30, 2010 they review their
portfolios and realize this startling fact:
Illustration ( Cont’d)
The more you delay starting your investment…
Investor A Investor B Investor C Investor D
Monthly Investment March 1, 1993 January 1, 1999 December 3 ,2001 November 1, 2004
Commenced on
Amount per Month(`)
(`) 5,000 7,500 10,000 15,000
No. of installments 210 140 105 70
Total Amount Invested 1,050,000 1,050,000 1,050,000 1,050,000
(`)
Compounded 15 19 22 20
Annualised Returns as
on 30th Sept, 2010(%)
(p.a)
Market Value as on 4,459,384 3,475,142 2,947,182 1,874,528
September 30, 2010
(`)
…less is the amount of wealth created, inspite of earning a substantially
higher return and investing more per month!!!
Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise
on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting
any returns. It does not in any manner imply or suggest current or future performance of any HDFC Mutual Fund
Scheme (s). SIP does not assure a profit or guarantee protection against a loss in declining market.
25. Analysis
Investor A’s portfolio is worth 138% more than Investor D’s
This is inspite of Investor D investing three times more per month and
earning a higher return than that of Investor A’s per year on
his investment!!!
The benefits of starting early (albeit in smaller amounts) and investing regularly
far outweigh anything else; compound interest is indeed a miracle
26. Power of Compounding
The Eighth Wonder of the World
An analysis of ` 10,000/- invested in the S&P CNX NIFTY on July 11, 1990
Date Market Value (`) in S & P CNX Nifty % of Total Capital Appreciation Missed
Index
July 11, 1990 10,000
January 2, 1995 40,305 80%
January 1, 1998 36,863 82%
January 1, 2001 42,765 79%
January 1, 2002 35,980 82%
January 1, 2003 37,509 82%
January 1, 2004 65,198 68%
January 2, 2007 136,631 34%
January 1, 2008 209,490 -2%
January 1, 2009 103,425 50%
January 4, 2010 178,391 13%
September 20, 2010 205,590
The cost of missing out on just ~9% of the total time (the last 18 months of the 20 year period) under analysis results in the investor
losing out on 50% of the capital appreciation possible by staying invested for the entire duration.
Compounding is truly a miracle if given the time to work its magic!!
Disclaimer: The above investment simulation is for illustrative purposes only
and should not be construed as a promise on minimum returns and safeguard
of capital. HDFC Mutual Fund/ HDFC Asset Management Company Limited
is not guaranteeing or promising or forecasting any returns.
27. Power of Compounding
The table below shows the difference in the overall returns due to compounding of interest rates
An Illustration at their respective levels
A marginal difference of 2% has a significant impact on eventual wealth creation
Year Cashing on Interest Interest Reinvested
Assumed Rate of Interest Value at the end of the year
( Simple interest) Assumed Rate of Interest ( Compound Interest)
8% 8% 10% 12%
1 8,000 1,08,000 1,10,000 1,12,000
5 8,000 1,46,933 1,61,051 1,76,234
10 8,000 2,15,892 2,59,374 3,10,585
15 8,000 3,17,217 4,17,725 5,47,357
20 8,000 4,66,096 6,72,750 9,64,629
25 8,000 6,84,848 10,83,471 17,00,006
30 8,000 10,06,266 17,44,940 29,95,992
Total Interest Earned (1) 2,40,000 71% 2,40,000 24% 3,00,000 17% 3,60,000 12%
Principal (2) 1,00,000 29% 1,00,000 10% 1,00,000 6% 1,00,000 3%
Interest on Interest (3) 0 6,66,266 66% 13,44,940 77% 25,35,992 85%
Total Amount 3,40,000 100% 10,06,266 100% 17,44,940 100% 29,95,992 100%
(4)= (3)+(2)+(1)
Einstein refers to the “Power of Compounding” as the “Eighth wonder of the World”
Disclaimer: The above investment simulation is for illustrative purposes only and should
not be construed as a promise on minimum returns and safeguard of capital. HDFC Mutual
Fund/ HDFC Asset Management Company Limited is not guaranteeing or promising or
forecasting any returns.
29. Mahesh
Mahesh has recently graduated from a premier management institute. He gets a
job as an executive at a MNC. He’s living at home with his parents and saving
every last rupee so he can make the ` 80,000 down payment on a ` 8,00,000
new car
He takes out a car loan for the remaining ` 7,20,000. It’s a five year loan at
11.67% p.a. interest, so he pays EMI of ` 16,000 every month to the finance
company
He cringes the first time he pays the ` 16,000 EMI, but forgets all that when
he’s driving around in the new car
A few months later, the car’s condition deteriorates. There are scratches on the
doors and stains on the carpets; its just another car now but Mahesh is stuck
with the payments
30. Ramesh
Ramesh has also just graduated from the same institute and works with
Mahesh as an executive at the MNC. He also lives at home with his parents
Ramesh took the ` 80,000 he’d saved up and bought a second hand car. Since
he paid cash, he didn’t have car payments to be made to the finance company
So instead of paying an EMI of ` 16,000 to the finance company, he invested
` 16,000 a month in a diversified equity mutual fund
31. Mahesh (Five years later)
At the end of five years, he’s sick of the car
He’s finally paid off the car loan, which cost him an extra ` 2,40,000 in interest
charges
So between the loan and the original purchase price, Mahesh has invested
` 10,40,000 in this car, not including taxes and fees, insurance premiums, gas,
oil and maintenance
If he sold the car now, its resale value would fetch him ` 2,00,000. So what he’s
got to show for his ` 10,40,000 investment is a ` 2,00,000 car that he doesn’t
even like anymore
32. Ramesh (Five years later)
Five years later, when Mahesh was mailing out his last car payments, the value
of Ramesh’s mutual fund had increased
Between the increase of the fund itself and the steady stream of ` 16,000
contributions to the fund, Ramesh has an asset of nearly ` 12,00,000 (at an
assumed rate of return of ~8% p.a.)
He also has the used car, which gets him back and forth OK, and he never
worries about dents and scratches because he never thought of it as an
investment, its only transportation
As we leave this economic morality tale, Ramesh has enough money to make a
down payment on his own house and move out of his parent’s house, while
Mahesh continues to mooch
Disclaimer : The above illustration is merely indicative in nature and should not be construed as an
investment advice. It does not in any manner imply or suggest current or future performance of any HDFC
Mutual Fund Scheme(s). SIP does not assure a profit or guarantee protection against loss in a declining
market.
33. To summarize:
If you start saving and investing early enough, you’ll get to a point where your
money is supporting you
This is what most people hope for, a chance to have financial independence
where they’re free to go places and do what they want, while their money stays
home and works for them
It will never happen unless you get into the habit of saving and investing and
putting aside a certain amount of money every month wisely
35. Product Features
Type of Scheme Open-ended Growth Scheme
Inception Date (Date of allotment) January 1, 1995
Investment Objective To achieve capital appreciation
Fund Manager $ Prashant Jain (Since June 19, 2003)*
Plans / Options Growth and Dividend
The Dividend Option offers Dividend Payout and Reinvestment facility
Minimum Application Amount Purchase: ` 5,000 and any amount thereafter
(Under Each Plan) Additional Purchase: ` 1,000 and any amount thereafter
Load Structure Entry Load:
Not Applicable. Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009,
no entry load will be charged by the Scheme to the investor. Upfront commission shall be paid
directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors’
assessment of various factors including the service rendered by the ARN Holder.
Exit Load:
In respect of each purchase / switch – in of units, an exit load of 1.00% is payable if units are
redeemed / switched – out within 1 year from the date of allotment.
No exit load is payable if units are redeemed / switched out after 1 year from the date of
allotment.
No entry / exit load shall be levied on bonus units and units allotted on dividend reinvestment.
Benchmark S&P CNX 500
*Date of Migration from Zurich India Mutual Fund.
$ Dedicated Fund Manager for Overseas Investments: Miten Lathia
36. Start early, continue regularly:
The table below shows notional loss of wealth due to delay in starting SIP
# Past Performance may or may not be sustained in the future.
Load is not taken into consideration. Investors are advised to refer to the Relative Performance table on slide No. 38.
Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on
minimum returns and safeguard of capital. HDFC Asset Management Company Limited / HDFC Mutual Fund is not guaranteeing
or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against a loss in a declining market.
37. HDFC Equity Fund- SIP Returns
Snapshot as on 30th November 2010
This is how your investments would have grown if you had invested say ` 1,000 systematically on the first
business day of every month over a period of time.
Since 10 Year 5 Year 3 Year 1 Year
SIP Investments Inception $ SIP SIP SIP SIP
SIP
Total Amount 191,000 120,000 60,000 36,000 12,000
Invested (`)
Market Value (`) 3,138,270 739,040 113,510 63,040 14,180
Returns (annualised) 30.59 34.14 25.82 39.94 35.49
(%) * ^
Benchmark Returns 16.64 21.77 14.47 22.28 15.00
(annualised) (%) #
^ Past Performance may or may not be sustained in the future.
# S&P CNX 500 $ Inception Date: January 1, 1995
*Load is not taken into consideration and the Returns are of Growth Option. Investors are advised to refer to Relative Performance
table on slide 15 for Non – SIP Returns
Please refer to the SIP enrolment form or contact the nearest ISC for SIP load structure.
Disclaimer: The above investment simulation is for illustrative purpose only and should not be construed as a promise on
minimum returns and safeguard of capital. HDFC Mutual Fund / HDFC Asset Management Company Ltd. is not guaranteeing
or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against loss in a declining market.
Please refer SIP enrolment form or contact nearest ISC for SIP load structure.
38. HDFC Equity Fund – Relative Returns
as on 30th November 2010
Period Returns (%) ^ S&P CNX 500 Returns (%) #
Last 1 Year (365 Days) 31.87 15.34
Last 3 Years (1098 Days) 12.74 -0.61
Last 5 Years (1826 Days) 24.41 15.69
Last 10 Years (3653 Days) 31.71 17.84
Since Inception (5751 Days) 23.70 10.51
^ Past performance may or may not be sustained in the
future
Above returns are compounded annualized (CAGR)
# Benchmark Index
Date of Inception: January 1, 1995
39. A few simple rules to conclude with:
Invest you must – The biggest risk is the long-term risk of not putting your
money to work at a return which beats inflation, not the short term risk of price
volatility
Time is your friend – Give yourself all the time you can. Start early, even with
a small amount and never stop. Even modest investments in tough times will
help you sustain the pace and will become a habit; compound interest is a
miracle
Stay the course – No matter what happens, stick to your program. It is the
most important single piece of investment wisdom you will receive
40. “Failing to plan is planning to
fail”
-Robin Sharma.
41. Think of each SIP payment as laying a
brick. One by one, you can lay the
foundation of a secured financial future.
Thank You
42. DISCLAIMER: This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be
reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions
and features of HDFC MF Systematic Investment Plan (SIP). The information/ data herein alone is not sufficient and shouldn’t be used for the development or
implementation of an investment strategy. It should not be construed as investment advice to any party. The statements contained herein may include
statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The
recipient alone shall be fully responsible / liable for any decision taken on the basis of this presentation. The content of this presentation is confidential and
intended solely for the use of the addressee. If you are not the addressee, or the person responsible for delivering it to the addressee, any disclosure, copying,
distribution or any action taken or omitted to be taken in reliance on it is prohibited and may be unlawful. No part of this document may be duplicated in whole or
in part in any form and/or redistributed without prior written consent of the HDFC Mutual Fund/ HDFC Asset Management Company Limited (HDFC AMC). The
recipient(s) should before investing in the Scheme(s) make his/their own investigation and seek appropriate professional advice. HDFC MF SIP does not assure a
profit or guarantee protection against loss in a declining market. HDFC Mutual Fund/ HDFC AMC is not guaranteeing or promising or forecasting any returns.
Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the Schemes’
objectives will be achieved and the NAV of the Schemes may go up or down depending upon the factors and forces affecting the securities
market. Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of
the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividends will be paid regularly. Investors in
the Schemes are not being offered any guaranteed / assured returns. The NAV of the units issued under the Schemes may be affected, inter-alia by changes in
the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities. The NAV will inter-alia be exposed to Price /
Interest Rate Risk and Credit Risk. HDFC Equity Fund, an open-ended growth scheme is only the name of the Scheme and does not in any manner
indicate either the quality of the Scheme, its future prospects and returns. Please read the Scheme Information Document and Statement of
Additional Information before investing. In view of the individual nature of tax consequences, each investor is advised to consult his/her professional tax
advisor. Investment Objective: To achieve capital appreciation. Asset Allocation Pattern: Equity and equity related instruments (80%-100%); Debt and
Money Market Instruments (0-20%). Investment in securitised debt, if undertaken, will not exceed 20% of the net assets of the Scheme. Load Structure:
Entry Load: Not Applicable. Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors’
assessment of various factors including the service rendered by the ARN Holder. Exit Load: In respect of each purchase / switch - in of units, an exit load of
1.00% is payable if units are redeemed / switched out within 1 year from the date of allotment. No exit load is payable if units are redeemed / switched - out
after 1 year from the date of allotment. Terms of Issue: Applications for subscriptions /redemptions /switches would be accepted at official points of acceptance
on all Business Days at NAV based prices. The AMC will calculate and publish NAVs on all Business Days. Statutory Details: HDFC Mutual Fund has been set up
as a trust sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited (liability restricted to their contribution of ` 1
lakh each to the corpus) with HDFC Trustee Company Limited as the Trustee (Trustee under the Indian Trusts Act, 1882) and with HDFC Asset Management
Company Limited as the Investment Manager.