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(FINANCIAL ADVISE FOR THE WISE
FINVISE INDIA
(FINANCIAL ADVISE FOR THE WISE
www.finviseindia.com
What Rs 2000 p.m can get you….
A sumptuous luxurious dinner for your family
Visiting your nearest relative place
Buy your monthly grocery
Make you a Millionaire*
*please refer slide 3 for more details
What does it take to create wealth…
Value /Yrs 3 5 10 15
5,00,000 12,000 7000 2,500 1,200
10,00,000 23,800 13,000 4,900 2,400
25,00,000 60,000 32,500 12,200 6,000
50,00,000 1,20,000 64,500 24,300 12,000
Investing Rs 2400 per month @ 10% p.a for 15 yrs makes you a
Millionaire
50,00,000 1,20,000 64,500 24,300 12,000
100,00,000 2,38,000 1,30,000 48,500 24,000
This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast on minimum returns and safeguard of capital. SIP does not assure a profit or guarantee protection against loss in a declining market. The calculation shows the outcome of investing a specified amount at a certain assumed rate of interest per annum.
The table shows the SIP amount required to be invested per month for achieving the target amount in the specified time period. The hypothetical rate of return on the investments is assumed at 10% p.a.
Most likely reasons to invest…..
Child’s Education
Child’s Marriage
Housing
Everyone has one or more of the above reasons to invest for!
Retirement
Safety
7 SUCCESSFUL HABITS OF INVESTING
� Start early
� Don’t time the market
� Prudent Asset allocation
Would you like to guess the 8th habit that
� Invest regularly
� Understand the risk reward ratio
� Have a set investment objective
� Invest for long term
8th habit that we got for you?
Insure your financial goals…..
Before we know more about this product….let us understand the investment climate around us!
VALUE OF MONEY OVER TIME
Impact of Inflation on monthly expenses of Rs 20,00 0
20,00025,526
32,578
41,579
53,066
10,000
20,000
30,000
40,000
50,000
60,000
Mon
thly
Exp
s in
Rs
Inflation Inflation –– A Devil, we A Devil, we need to beat it!need to beat it!
-
Today 5 years 10 years 15 years 20 years
Period
Inflation @ 5% p.a
Value of Rs 1 lac over time
100,000
78,353
61,391
48,10237,689
-
20,000
40,000
60,000
80,000
100,000
120,000
Today 5 years 10 years 15 years 20 years
Period
Val
ue o
f Mon
ey
WHERE DO PEOPLE SAVE THEIR MONEY?
Chit fund/NBFC, 9.4
Gold, 5.8Mutual Fund, 1.2
Real Estate, 5
Equity market, 1.1
Banks, 44.9
Postal Savings, 11.6
Life insurance, 32.8
Source: Invest India Incomes and Savings Survey 201 2**Mutual Fund as an Asset Class has a very low penet ration
Long Term Investing – Case Studies
Its not the timing
but the time in the market which matters
Invest Systematically…..Invest Systematically…..
Invest Long term…
Money grows over a period of time…
Rs 1000 invested at 8%p.a every month for…
Power of Compounding
592,947
… just like a rolling snowball gathers snow & grows .
This is an hypothetical illustration to explain the concept of “Power of Compounding”. Past Performance may or may not be sustained in fut ure.
184,166
348,345
592,947
60,000
240,000180,000
120,00073,967
-100,000200,000300,000400,000500,000600,000
5 yrs 10 yrs 15 yrs 20yrs
Period
Am
ou
nt a
fter
com
po
un
din
g
Principal Amount
IT ALWAYS PAYS TO START EARLY & SAVE FOR RETIREMENT
B holds for20 years
A holds for 30 years
Start Early
120,000 120,000
1,488,603
689,511
500,000
1,000,000
1,500,000
Am
ount
at t
he A
ge o
f 60
� A & B invest Rs. 2000 every month, earning interest @ 8% p.a. on a monthly compounding basis
� A starts at the age of 25 yrs, while B starts investing at the age of 35 yrs
� Both of them invest for 5 yrs (Rs. 1.2 lacs) and hold their investments till 60 yrs. of age
� A’s investment appreciated to over Rs.14,88,603 while B’s investment grew to only Rs. 6,89,511
Only an illustration to explain the power of compounding.
120,000 120,000
-
500,000
A B
People Who have invested
Am
ount
at t
he A
ge o
f
& Don’t Time the Market…
Scenarios Investor buys at Market Peaks
Investor buys at Market Lows
Investor buys at constant interval
BSE Sensex 16.69% 23.09% 19.12%
BSE 100 17.64% 24.73% 20.58%
Reliance Growth Fund-Retail Plan- Growth Plan – Growth Option* (RGF)
36.65% 42.13% 38.28%
Reliance Regular Savings Fund-Equity Option- Growth Plan * (RRSF- EQ)
27.16% 47.92% 36.03%
Rs 10,000 invested every year for a period of 16 ye ars in RGF from Jan 96 to April 12 & in RRSF- EQ for a period of 7 years from June 05 to April 12
Past Performance may or may not be sustained in future.
*Returns as on 30th April 12
� Simple, straightforward way to create
long term wealth
� Understand and embrace
risk
Put time on your side
Make the right choice….
� The alternative is to :
Follow markets very closely
Time your entry and exit very well
Select your stocks judiciously� Put time on your side
� Invest systematically
� Don’t worry about market timing
� A tried & tested method
Select your stocks judiciously
And hope that you get it right more
often than not!
The choice is yours to make………..
SYSTEMATIC INVESTMENT PLAN (SIP) & ITS BENEFITS
SIP is a long term investment technique under which you invest a fixed sum of money
on a monthly or quarterly basis in a mutual fund scheme at the prevailing NAV.
Inculcates savings habit
Eliminates need for timing
markets
Helps averaging cost of investment
Protects against market
volatility
Improves probability of better returns
This allows you to save and invest regularly while you are earning.
Past Performance of SIP in Reliance Growth Fund
SIP Installment /Yrs 3 5 10 Since Inception
2,000 1,03,985 1,90,429 5,34,487 95,47,569
3,000 1,55,980 2,85,645 8,01,737 1,43,21,352
5,000 2,59,971 4,76,079 13,36,230 2,38,68,926
10,000 5,19,940 9,52,156 26,72,451 4,77,37,844
15,000 7,79,915 14,28,240 40,08,690 7,16,06,765
Inception Date: 8th Dec 1995. Returns are of Retail Plan- Gro wth Plan – Growth option as on 31st Aug 2015
Past Performance may or may not be sustained in future.
The above table shows the historical SIP performance of Reliance Growth Fund (Retail Plan – Growth Plan – Growth
option)
For example; A person who had made an SIP of Rs 5000 p.m in the above fund since inception on 8th Dec 1995 would have
invested Rs 11.85 lacs by 31st Aug 2015 and have earned a total amount of Rs 2.38 crs (As per the highlighted cell)
PPF
VSVS
ELSS MUTUAL FUNDS
REAL ESTATE VS EQUITY MFS VS GOLD
Thanks for your time