GAP GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIP S

Transcription

1 THERE ARE IMPORTANT FINANCIAL GOALS IN LIFE CHILD S MARRIAGE Good plans shape good decisions. That's why good planning helps to make elusive dreams come true. Geoffrey Fisher CHILD S HIGHER EDUCATION The one thing we can do is invest in the quality of education, especially higher education. Ron Kind YOUR OWN RETIREMENT To enjoy a long, comfortable retirement, save more today. Suze Orman

2 Presenting Dear Investors, NJ is an idea to help you achieve your long-term goals at the right time by investing systematically in the right avenues through Systematic Investment Plan (SIP). NJ helps you direct your savings to meet the goals, obligations & dreams like buying a house, higher education, marriage, retirement, luxury etc. and enjoy life. We believe that with proper planning, right approach and disciplined behaviour anything is possible to achieve in life. Wishing you all the best.

3 INFLATION THE BIGGEST HURDLE IN YOUR FINANCIAL GOALS ACHIEVEMENT As per RBI estimates WPI inflation has grown by 6.8% in the last 30 years How Inflation is eating your Money Actual Inflation GOLD PETROL DIESEL MILK % % % % R1,00,000/ R65,908/ R33,825/ R13,518/- Source : RBI, Bloomberg, NJ Internal Reduced value of 8% inflation p.a.

4 INFLATION RETIREMENT HOUSE HOLD EXPENSE * R15,000/- R25,000/- R60,000/- CHILD S HIGHER EDUCATION HIGHER EDUCATION * R3.16 lacs R18.70 lacs R36 lacs Fees of PGDBM in IIM Bnagalore, Source: Times of India CHILD S MARRIAGE PLANNING MARRIAGE COST * R4-5 LACS R10-12 LACS R25-30 LACS *Cost in the year 2025 assumed at 8% inflation p.a. on 2015 prices

5 ACHIEVING GOALS THE RIGHT WAY TO CREATE LONG-TERM WEALTH? Buying potential BIG WINNING STOCKS? Successfully TIMING MARKETS Following EXPERT recommendations Saving a LOT OF MONEY

6 THE RIGHT WAY SIMPLE, SMART & TIME TESTED FORMULA TO ACHIEVE GOALS START EARLY + INVEST IN RIGHT ASSET CLASS + SAVE REGULARLY = GOAL ACHIEVEMENT

7 START EARLY GIVE TIME TO YOUR INVESTMENT RATHER THAN TIMING AND BENEFIT FROM THE POWER OF COMPOUNDING Systematic investing has a compounding effect on your investments. In the long term, an investment as low as R 5000/- per month swells up into a huge corpus. This can be best explained by the following graph. The graph shows advantages of starting early. If an investor starts early, even with lower invested amount he can create a large corpus CRORES MR GUPTA MR SAXENA SAVING STARTING AGE 25 YEARS 45 YEARS MONTHLY SAVINGS R 5,000/- R 15,000/- SAVING TILL AGE 60YRS TOTAL AMOUNT SAVED WEALTH AT AGE 60 YRS 35 YEARS R 21 LACS R 5.70 CRORES 15 YEARS R 27 LACS R 0.92 CRORES 0.92 CRORES 25 YEARS 45 YEARS 60 YEARS The above example is merely an illustration to explain the benefit saving at an early age. Returns are assumed at 15% CAGR. Assumed that SIP investment are done regularly every month. No guarantee or assurance of return is being offered by any mutual fund or NJ. The actual result may vary from depicted results depending on scheme selected.

8 RIGHT ASSET CLASS EQUITY MARKET HAS OUTPERFORMED ALL OTHER INVESTMENT AVENUES Growth of Rs. 1,000 in Different Asset Classes Actual Gain Real Gain 1,02, ,241 17,352 17,442 20,162 15,046 0 INFLATION GOLD SILVER BANK DEPOSITS CO. DEPOSITS SENSEX 0 INFLATION GOLD SILVER CO. DEPOSITS BANK DEPOSITS SENSEX Growth in Different Asset Classes from March March 2014 Source: Gold-Handbook of Statistics on Indian Economy, RBI. Silver - Handbook of Statistics on Indian Economy, RBI. Sensex - Slide of PPT of HDFC MF. Co Deposits - assumed (1% higher than Bank FD Rate). Bank Deposits - Handbook of Statistics on Indian Economy, RBI. Inflation - Handbook of Statistics on Indian Economy, RBI It is evident from the graph that in the long term, equity investments have outperformed other investment avenues and has beaten inflation by a huge margin. Equity mutual funds over a long-term horizon offer better risk-return pay off + Liquidity, Transparency and Convenience

9 INVEST REGULARLY DISCIPLINED INVESTING THROUGH SYSTEMATIC INVESTMENT PLAN (SIPS) Every investor dreams of buying at a low price and selling at a higher price. But, how does one know whether any given time is the right time to buy or sell? Many retail investors try to judge the market movements and end - up losing their money in the long term. A more successful strategy is Rupee Cost Averaging wherein you invest a fixed amount regularly. Thus you purchase more when the price are low and purchase less when prices are high. SIP investments takes advantage of this strategy (R) (R) (R) NAV R (R) NAV R11 10 The above example is merely an illustration of Rupee Cost Averaging. The NAVs and returns generated are purely indicative and do not depict the performance of any mutual fund scheme. The actual results may vary from the depicted figures. No guarantee or assurance of return is being offered by the Mutual Fund or NJ. Rising Market Falling Market Market Unit Purchased Market Unit Purchased SYSTEMATIC INVESTMENT PLAN (SIP) AN IDEAL WAY TO REDUCE RISK AVERAGE COST PER UNIT < AVERAGE PURCHASE PRICE PER UNIT

10 SENSEX RETURNS EQUITY NOT RISKY IN LONG TERM Reducing probability of loss with increased investment tenure Past Performance may or may not sustain in future. The scenarios depicted herein above is for illustration purpose only and do not represent any forecasted performance. The above data shows returns for investments done in sensex every year on 31st March starting from 1979 till 31st March 2014 and is based on data available on which depicts performance of BSE sensex over a period of time. It shall not be construed to be indicative of scheme performance in any manner.

11 TIME IS IMPORTANT MARKET TIMING DOES NOT MATTER OVER THE LONG TERM Best market timing (almost impossible) has yielded less than 2% additional return than systematic investment. Time to go systematic % INVESTING IN THE BSE SENSEX - 26 YEARS 15.34% 14.10% Data source: capitalmarket Period from Jan 1988 to December 2014

12 SENSEX RETURNS YEAR SENSEX INVESTMENT R1,00, ,499 R2,74,99,000 *As on 31 Dec 2014 IN PAST 36 YEARS BSE SENSEX HAS GIVEN 17% RETURNS (CAGR) SENSEX HAS DELIVERED THESE RETURNS INSPITE OF Two Wars Major financial scandals Assassination of 2 Prime Ministers At least 3 recessionary periods 10 different governments An unfair share of naturals disasters Global crisis like Dot Com bubble of 2000 and Sub Prime crisis of 2008

13 POWER OF COMPOUNDING Albert Einstein once noted that the most powerful force in the universe was the principle of compounding. DO YOU KNOW? At the Rate of 15% Compounding what will be the value of After 5 years R 2/- After 15 years R 8/- R 1/- Give maximum TIME to your investment to get most of POWER OF COMPOUNDING After 10 years R 4/- After 30 years R 64/-

14 SYSTEMATIC INVESTMENT PLAN (SIP) Systematic Investment Plan (SIP) is a tool that allows you to invest in mutual funds through small, periodic installments. SIPs help you set aside a fixed amount every month for investments thus contributing towards your goals. For Investment purpose, we often wait to collect a large amount of money and investment it all at once. Through SIP you can start with smaller amount on a monthly basis and create wealth over the long term.

15 SIP PERFORMANCE EQUITY NOT RISKY IN LONG TERM PERFORMANCE OF SIP IN DIVERSIFIED EQUITY MF SCHEMES 15 yrs Performance Returns on R10,000 invested per month CAGR (%) Current Value (R) 21.88% 1,12,87, % 64,99,490 Category Avg of MF Schemes Sensex (Total number of schemes covered : 34, Returns as on 31st Dec SIP Amount of R10,000 per month. Total investment R18 Lacs) SIP R10,000/- PER MONTH INVESTED R CURRENT VALUE R *Returns as on 31st Dec For Schemes with dividend option, dividend reinvestment has been considered on the date of dividend. Investment assumed to be done on 10th of every month. Source: NJ Internal There are 34 equity funds, which have completed 15 years, the average SIP return of 34 diversified equity funds is 21.88% over last 15 years. So someone who had started with SIP of R10,000 in December 1999, has accumulated R1.12 Crores as on 31st December 2014 (on an investment of R18 lacs over the 15 year period).

16 SIP PERFORMANCE PERFORMANCE OF SIP IN BALANCE FUND MF SCHEMES 15 yrs Performance Returns on R10,000 invested per month CAGR (%) Current Value (R) 19.15% 88,60, % 64,99,490 Category Avg of BALANCE Schemes Sensex (Total number of Balance fund scheme covered 7, Returns as on 31st December SIP Amount of R10,000 per month. Total investment R18 Lacs) SIP R10,000/- PER MONTH INVESTED R CURRENT VALUE R *Returns as on 31st December For Schemes with dividend option, dividend reinvestment has been considered on the date of dividend. Investment assumed to be done on 10th of every month. Source: NJ Internal There are 7 balance funds, which have completed 15 years, the average SIP return 19.15% over last 15 years. So someone who had started with SIP of R10,000 in December 1999, has accumulated R88.60 lacs as on 31st December 2014 (on an investment of R18 lacs over the 15 year period).

17 WHY NJ WITH NJ YOU CAN PLAN TO FULFIL YOUR GOALS IN LIFE NJ is a unique goal based investment programme through a Systematic Investment Plan (SIP). Investors in this programme have the flexibility of choosing a monthly investment amount as well as the investment duration of their choice. NJ would enable the investors to plan for their goals without needing to review, re-invest or for that matter time the markets. With NJ you can plan to fulfill all your desires in life. REAP THE BENEFIT OF COMPOUNDING THROUGH SIP

18 NJ FEATURES Monthly Investment Option NJ OFFERS INVESTORS WITH GREAT ADVANTAGES INVESTMENTS IN THE RIGHT ASSET CLASS With NJ, you would invest in Equities, an asset class with potential to deliver very attractive returns in the long run TAX FREE RETURNS Long term capital gains in Mutual Funds for investments above one year are nil. So, all returns made through NJ are TAX FREE (1 year & above investment only). INVESTMENTS ARE HIGHLY LIQUID There is no lock-in* period of any kind and investments can be very easily redeemed at any time wish. CONVENIENCE You only have to fill the NJ application form and the Auto Debit (ECS) form and submit it with one cheque.

19 SIP READY RECKONER SIP FOR LONG TERM CAN GIVE YOU THE MAXIMUM RETURN The above SIP Ready Reckoner is for illustration purpose only. The SIP amount, tenure of SIP, expected rate of return are assumed figures for the purpose of explaining the concept of advantages of SIP investments. The actual result may vary from depicted results depending on scheme selected. It should not be construed to be indicative of scheme performance in any manner.

20 TADA NJ TRADING & DEMAT ACCOUNT EASY - ACCURATE - CONVENIENT A comprehensive platform especially designed keeping in mind the simplicity, accuracy & convenience of the client. NJ Trading Account & Demat Account (TADA) service, helps avoid the hassles & worries of doing physical transactions. NJ TADA offers convenience in doing transactions in simple, accurate, time and cost effective manner in multiple modes. It is a revolutionary platform, which will empower you with great flexibility of transactions irrespective of product category, transaction modes and payment option. NJ TRADING & DEMAT ACCOUNT TRANSACTION FACILITIES MUTUAL FUNDS Purchase Systematic Investment Plan (SIP) Inter AMC Switch Inter AMC STP Redemption CAPITAL MARKET Buy Sell EXCHANGE TRADED FUND Buy Sell Systematic Investment Plan (SIP)

21 ONE TIME DOCUMENTATION New KYC & bank proof required* No other documents needed SINGLE WINDOW - MULTIPLE PRODUCTS Mutual Funds Equity Shares Exchange Traded Funds EASY & MULTIPLE MODES OF TRANSACTIONS Online Mobile Offline*** On Phone*** (Call) HIGH ACCURACY & SPEED System driven transaction process INNOVATIVE TRANSACTIONS. Inter AMC Switch/STP SIP In Exchange Traded Funds NO GEOGRAPHICAL BARRIER Transaction can be done from anywhere NJ TRADING & DEMAT ACCOUNT FEATURES OPERATIONAL EASE Single payment against multiple transactions Single contact point for all information and updates TAX BENEFIT U/S 80CCG Additional tax benefit with RGESS All eligible securities available** COMPREHENSIVE REPORTS Transaction report Valuation report Profit & Loss report CONVENIENT & SECURED PAYMENT OPTIONS Debit Card Net Banking Auto Debit/ECS Cheques CENTRALISED CUSTOMER CARE All query solutions at single point Call AUTO TRANSACTION ALERTS SMS/ alerts for transaction done * As per the KYC guidelines issued by SEBI from time to time. **As per the guidelines of finance ministry from time to time. ***Terms and conditions applicable.

22 CALL TODAY AND ACHIEVE FOR FINANCIAL GOALS... PARTNER WEALTH FINANCIAL PRODUCTS DISTRIBUTOR NETWORK Disclaimer: The CAGR is computed based on IRR since SIP installment are received at different interval across the SIP Period. All information / data in the presentation is taken from various sources including information developed in-house. All data and information assumed in the preparation of this document is dated. The same may or may not be relevant at a future date. The actual future results may significantly vary and depends on various market factors, political and other general economic conditions. Investors are requested to consult their financial advisors before taking any investment decision. Neither NJ India Invest nor Mutual Fund and their employees or Directors takes no responsibility for any investment decision taken by investors. Prospective investors are therefore advised to consult their own legal, tax and financial advisors to determine possible tax, legal & other financial implication or consequence of subscribing to the units of Mutual Fund. Mutual Fund investments are subject to market risks. Investors are requested to read Scheme Information Document and Statement of Additional Information before investing in any scheme.