MONTHLY MEET AUGUST 28
AGENDA COMMON QUESTION MARKET ARE RISING WHY IS MY NAV FALLING? STOPPING SIP IS INJURIOUS TO WEALTH UPDATE ON VID NEW MARS REPORTS PARTNER DESK IN
COMMON QUESTION WHEN MARKETS ARE RISING, WHY IS MY NAV FALLING? 02
MARKET OVERVIEW OF LAST ONE YEAR INDICES Nifty 50 BSE Sensex 31 JULY 17 10085 32514 31 JULY 18 11356 37606 RETURN 12.60% 15.66% Data as on 31 July 18 THE PAST YEAR HAS BEEN A ROLLER COASTER RIDE THERE IS POSITIVE SENTIMENT IN THE MARKETS, THE INDICES ARE BREAKING THEIR OWN RECORDS. 03
COMMON QUESTION OF THE MUTUAL FUND INVESTOR WHEN MARKETS ARE RISING, WHY IS MY MUTUAL FUND INVESTMENT FALLING? 04
REASON OF MF NAV ARE NOT FOLLOWING RISING CURVE MUTUAL FUNDS CATEGORY Large Cap funds Multi Cap funds Mid & Small Cap funds Nifty 50 TRI 6 MONTHS 1 YEAR (-) 3.00% 8.40% (-) 6.08% 7.07% (-) 12.12% 4.53% 2.59% 14.09% Source: NJ Internal. As of 30 June 28 LARGE CAP, MULTI CAP AND MID CAP SCHEMES HAVE UNDERPERFORMED THE KEY BENCHMARK, NIFTY 50 TRI. 05
LET'S UNDERSTAND DIFFERENCE IN RETURN Source: Blooomberg as on 30-06-18 Only 35 stocks contributed positively to the Nifty The returns from the top 3 performing stocks alone contributed an absolute ~7.4% of the entire Nifty returns of 14.09% The top 7 performing stocks contributed nearly 13% absolute to the entire Nifty returns 06
MUTUAL FUND COMPOSITION DIFFERENT FROM INDICES MF Large Cap invest in top 100 Stocks, Midcap 1-250 and Multicap in mix of all, so these returns are not comparable with Sensex or Nifty MF offer basic benefit of diversification to investors and money is invested across the board and not in select few stocks 07
WHAT SHOULD ADVISOR DO? MUTUAL FUND PERFORMANCE IN LONG TERM MUTUAL FUND SCHEME 5 YEARS 10 YEARS 15 YEARS Average of Large Cap Funds 16.4% 12.9% 18.6% Average of Blend / Multicap Funds 18.7% 13.7% 20.2% Average of Midcap Funds 24.5% 17.2% 23.3% Nifty 50 TRI 14.3% 11.6% 17.8% Nifty MidCap 100 TRI 21.3% 14.8% 21.1% Data as on 31 July 18 MF Investors are investing in MF for long term, so in short term many phases like these are going to come. It's time to get back to the basic principles of investing in equities and reaffirm our conviction in equities & the Indian growth story over the long term. HAVE PATIENCE AND STAY INVESTED FOR LONG TERM 08
STOPPING SIP IS INJURIOUS TO WEALTH 09
SIP - WEALTH CREATOR PARTICULAR DATA SIP Amount R10,000 SIP Tenure 20 Years Amount Invested R24 Lacs Avg Fund Value R2.30 Cr Avg Return (%) 19.4% Best Fund Value R3.72 Cr Best Return (%) 23.2% Worst Fund Value R83.53 Lacs Worst Return (%) 11.2% Data as on 31 July 18. Avg performance of 20 equity Mutual fund Schemes 10
SIP - WEALTH CREATED IN 20 YEARS SIP OF R10,000 FOR 20 YEARS FUND VALUE RETURN (%) (CR.) Total Investment R24 Lacs Reliance Growth Fund Gr 3.72 23.2 3.70 23.2 Franklin India Prima Fund Gr HDFC Taxsaver - Div 3.28 22.2 HDFC Equity Fund - Div 2.99 21.5 HDFC Top 100 Fund - Div 2.48 20.0 HDFC Capital Builder Value Fund - Gr 2.42 19.8 Reliance Vision Fund Gr 2.39 19.7 DSP BlackRock Equity Fund - Reg. Plan - Div 2.38 19.7 Franklin India Bluechip Fund Gr 2.38 19.7 2.35 19.6 Aditya Birla Sun Life Tax Relief 96 Fund - Div SBI Magnum Tax Gain Fund - Div 2.35 19.6 2.26 19.3 Tata India Tax Savings Fund Regular Plan - Div SBI Large & Mid Fund - Div 2.16 18.9 Templeton India Value Fund - Gr 2.09 18.7 2.08 18.6 Tata Large Cap Fund - Gr SBI Magnum Equity ESG Fund - Div 1.60 16.5 HDFC Growth Opportunities Fund - Gr 1.08 13.3 Avg of SIP Return of Equity Mutual Fund 2.30 19.4 S&P BSE SENSEX 1.1 13.4 SCHEME NAME Data as on 31 July 18. Avg performance of 20 equity Mutual fund Schemes 11
20 YEARS SIP JOURNEY WAS NOT SMOOTH RIDE. LET'S SEE SENSEX JOURNEY OF LAST 20-25 YEARS. 20 YEARS SIP JOURNEY 12
SENSEX JOURNEY OF LAST 25 YEARS 13
START SIP ANY DAY (SIP STARTED AT PEAK OR BOTTOM - DOESN'T MATTER) 14
SIP STARTED AT MARKET PEAK SIP STARTED IN 2008 WHEN MARKET WAS AT PEAK PARTICULAR 1 YEAR 2 YEAR 10 YEAR SIP Amount R10,000 Invested Amount (Rs.) 1,20,000 2,40,000 12,00,000 Avg value of Div equity funds 83,224 3,34,383 30,95,925 Avg return of Div equity funds (%) -55.72 35.44 17.61 Source : NJ Internal 15
SIP STARTED AT MARKET BOTTOM STARTED SIP ON 2009 WHEN MARKET PARTICULAR 1 YEAR SIP AMOUNT R10,000 Invested Amount (Rs.) 1,20,000 Avg value of Div equity funds 1,52,772 Avg return of Div equity funds (%) 55.87 AT BOTTOM 4 YEARS 9 YEARS 4,80,000 10,80,000 4,81,000 24,27,021 0 16.95 Source : NJ Internal AN SIP CAN DELIVER GOOD RETURNS OVER LONG ONLY IF IT PASSES THROUGH LEAN PHASES IN THE MARKET INVESTORS WILL BE ABLE TO COLLECT MAXIMUM UNITS DURING THIS PHASE ONLY IN THEIR SIPS UNITS ACCUMULATED AT CHEAP RATES IN LEAN PHASE ONLY ARE GOING TO DELIVER MAXIMUM RETURNS WHEN MARKETS TURN AROUND 16
17
RETURNS OF STOPPED SIP SIP OF R10,000 STARTED IN SEPTEMBER 2008 SIP STOPPED IN AUGUST 23 SIP CONTINUED TILL 60 MONTHS ONLY AMOUNT INVESTED R6,00,000/FUND VALUE R7,,300/AVG SIP RETURN 6.10% MANY INVESTORS CHOSE TO DISCONTINUE THEIR SIPs AS RETURNS FOR SIP HAD FALLEN BELOW FD RATES, LETS SEE IF THEY TOOK A WISE DECISION?? 18
RETURN OF CONTINUE SIP SIP OF R10,000 STARTED IN SEPTEMBER 2008 SIP STILL CONTINUE TILL JULY 28 SIP Continue Till 119 Months Amount Invested R11,90,000/Fund Value R27,40,700/Avg SIP Return 16.07% AVG SIP RETURN OF 105 EQUITY FUNDS AROUND R 20 LAC LOSS OF WEALTH 19
CONTINUE YOUR SIP Many investors who have started their SIP in last year are in dilemma about their SIPs due to fall in markets We need to convince the investors CONTINUE YOUR SIP, NO NEED TO WORRY MAKE VOLATILITY YOUR FRIEND THROUGH SIP 20
IMPORTANT COMMUNICATION RELATED TO VID AS PER RECENT CIRCULAR FROM UIDAI, THEY HAVE EXTENDED VID IMPLEMENTATION TIMELINE AADHAAR + OTP OPTION MADE AVAILABLE FOR E-SIGN NOW CLIENT CAN PROVIDE OTP ALSO IN CASE OF AADHAAR IS PROVIDED FOR E SIGN THE DOCUMENT 21
NEW REPORTS UNDER PARTNER DESK 22
NEW MARS RELATED REPORTS IN PARTNER DESK Home >Investments > SWP Registration/Cancellation Report Home >Investments > SWP Instalment Report 23
MARS SWP REGISTRATION/CANCELLATION REPORT Menu: Partner Desk > Investments > MARS > Reports > MARS SWP Registration/Cancellation Report This report provides details on each MARS SWP Registered/Cancelled with all key elements of the SWP. 24
MARS SWP INSTALLMENT REPORT (DETAIL FORMAT) This report format provides details on each installment for particular MARS SWP. 25
MARS SWP INSTALLMENT REPORT (DETAIL FORMAT) Get details on scheme level order generated & processed for a redemption against each processed installment. 26
MARS SWP INSTALLMENT REPORT (SUMMARY FORMAT) Summary report format provides status wise installment summary per MARS SWP 27
28
NEW PRODUCTS IN 29
NEW FLYERS IN bizmall ARE YOU FINANCIALLY FIT? THODA AUR ZYADA MF Specifications: COST: Size: Half of A4 Paper: 80 gsm PRINT SHOP (Multi Colour) R 700 / 500 qty & R 1,250 / 1,000 qty Color: Multi & Single colour Language: English Partner dzetails in single colour PRINT SHOP (Single Colour) R 1,250 / 2,000 qty 30
NEW BANNER & STANDY IN bizmall ARE YOU FINANCIALLY FIT? THODA AUR ZYADA MF COST: COST: Banner : 2' x 3' - R 350/1 qty Standy : 2' x 5' - R2000/1 qty Banner : 4' x 6' - R 850/1 qty Standy : 3' x 6' - R2500/1 qty 31
NEW DANGLER & V. CARD IN bizmall ARE YOU FINANCIALLY FIT? COST: Dangler Size : 4.5 x 3 Inch R \450/200 qty THODA AUR ZYADA MF COST: Visiting Card : R400/250 qty Visiting Card : R700/500 qty 32
THANK YOU 33