dsp blackrock mutual fund systematic investment plan presentation jun 30, 2011

Systematic Investment Plan

July 2011

DSP BlackRock Mutual Fund

When they say time is money, they must mean Systematic Investment Planning

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

Introduction

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Did you know ?

If your current monthly expenses are Rs. 30,000/- per month, then after 20 years you will require Rs. 80,000/- a month to just maintain the same lifestyle!An education degree for your child which currently costs Rs. 20 lakh could cost over Rs. 34 lakh after 11 years!

At inflation of 5%

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Individual Investor Needs: Investment Goals

All individuals need to save for • Retirement

• Child’s education / marriage

• Medical emergency

• Other family obligations

Every individual has one or more of the above goals

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Individual Investor: Life Stages

Earnings (Consumption + Savings)

Consumption

Savings

60Retirement

27Young Married

22Young Independent

40Middle Age

All individuals have a finite period to save for their investment goals

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Value of Money over time

30,00038,288

62,368

79,599

Today 5 years 15 years 20 years

100,000

78,353

48,10237,689

Today 5 years 15 years 20 years

Investors need to beat inflation

Value of Rs. 100,000 over timeImpact of inflation on monthly expenses of Rs. 30,000 today

All figures in Rs.; At inflation of 5%; Hypothetical numbers meant only for illustration purpose

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Performance of Various Asset Classes

6.62%

8.87%

2.11%

16.97%

9.71%

WPI Inflation Bank FDs* BSE Sensex^

Growth Real Growth

Equities outperform other asset classes over the long termSource: IIFL, Internal; *1-3 year maturity; ^excluding dividends; data as at end FY2010

Cumulative annualised returns: 1982 to 2010

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Individual investors are scared of …

The Downside Risk in Equities The Risk of Market TimingThe Risk of Market Volatility

What else makes a material impact on investments in equity?

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Returns are from Jan 1980- Aug 2010

Investing in the BSE Sensex

16.91%

Fixed investment on 1st day of every month

16.19%

17.60%

Fixed investment at lowest sensex value

every year

Fixed investment at highest sensex value

every year

Market timing does not matter over the long termSource: Internal; Returns have been calculated as on Aug 19, 2010

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The Power of Compounding

Saving a small sum of money regularly in equity mutual funds can make your money work with greater power and can have a significant impact on wealth accumulation.

BSE SensexScenario A

BSE SensexScenario B

Number of years 15 20

Monthly investment Rs 5000 Rs 5000

Total investment Rs 9 lakh Rs 12 lakh

Assumed annualised return 18% 18%

Final corpus Rs. 45.96 lakh Rs. 1.17 crore

The above illustration above is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP BlackRock Mutual Fund. Please read the SID and SAI carefully before investing.

Even a seemingly small 5 year delay can cost you the ‘CROREPATI’ tagTime Period of 25 years; Hypothetical numbers meant only for illustration purpose

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Summary

Long Term Systematic Monthly Investment In equity schemes

is ideal for this !

Investors needs to save regularly and invest those savings in higher

return assets to create wealth

How Do You Achieve Your Financial Goals?

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Retirement corpus required to meet post retirement expenses (if invested at 7%) : Rs 1.4 cr

Retirement Planning

Today At the time of retirement

Rs 30,000

Rs 83,579

21 YrsInflation 5%

Monthly investment needed to achieve this corpus in 21 years

at 12% Rs 12,583

at 15% Rs 8,083

at 18% Rs 5,090

Corpus required per month

Monthly Household Expenses

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Retirement Planning

Present When your Child actually goes for this degree

Rs 20,00,000

Rs 34,20,000

11 YrsInflation 5%


at 12% Rs 12,456

at 15% Rs 10,166

at 18% Rs 8,237

Corpus required

Educational Degree for Child

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Retirement Planning

Present When your Child actually gets married

Rs 20,00,000

Rs 43,70,000

16 YrsInflation 5%


at 12% Rs 7,509

at 15% Rs 5,466

at 18% Rs 3,925

Corpus required

Child’s Marriage

What Are The Benefits Of Investing Through Systematic Investment Plan?

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Benefits of Investing Systematically

The Benefit of Long Term Equity Investment• Equities give superior returns among all asset classes over the long term

• DSP BlackRock Mutual Fund has a track record of consistent good performance relative to its peers

The Benefits of Systematic Monthly Investment• Takes out the risk of market timing

• Adds the benefits of the rupee cost averaging and the power of compounding

RUPEE COST AVERAGING• One doesn’t have to worry about when to invest, how much to invest etc considering daily market movements, as

systematic investing reduces the risks significantly

• Eliminates the need to time your investments in equities

• Smoothens the impact of market fluctuations and hence reduces risks of investing in volatile markets

• The risk of market volatility gets negated with more units being purchased when the Price is low and fewer units being bought when the Price is high

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Average NAV per Unit over 12 months =(23+21+22+!9+16+17+17+20+21+19+25+24)/12

or Rs 20.34

Average Cost per Unit over 12 months =12,000/601

or Rs 19.96

Benefits of Investing Systematically: Rupee Cost Averaging

Time (Months) Amount invested NAV per Unit (Rs) Units purchased

1 1,000 23 43

2 1,000 21 48

3 1,000 22 45

4 1,000 19 53

5 1,000 16 63

6 1,000 17 59

7 1,000 17 59

8 1,000 20 50

9 1,000 21 48

10 1,000 19 53

11 1,000 25 40

12 1,000 24 42

Total 12,000 601

Average Cost per Unit will always be lesser than the Average NAV per Unit, regardless of the market movements

Source: Internal; Hypothetical numbers meant only for illustration purpose

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Benefits of Investing Systematically (contd…)

Flexibility• You can choose from a wide array of schemes

• You can decide to keep invested amounts in an earlier scheme & invest future SIP installments

• into a new scheme

Added Convenience• Auto debit facility across over 25 locations in India

• Regular account statements

• Redemption request directly credited into your bank account

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The First 4 Steps To Potential Wealth Creation

Select a mutual fund scheme of your choice

Select the amount you can afford to invest every month

Decide on the frequency with which you will invest

Decide the length of the investment period

Step 1

Step 2

Step 3

Step 4

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The Power of Compounding@12% CAGR

Invest Systematically to Benefit from the Power of Compounding

Table Illustrating the power of compounding (12% CAGR)

Monthly Investments for a period of:

12% return per annum

5 years 10 years 15 years 20 years 25 years

2,000 1.65 Lacs 4.65 Lacs 10.09 Lacs 19.98 Lacs 37.95 Lacs


10,000 8.25 Lacs 23.23 Lacs 50.46 Lacs 99.91 Lacs 1.90 Crore

15,000 12.37 Lacs 34.85 Lacs 75.69 Lacs 1.50 Crore 2.85 Crore

20,000 16.50 Lacs 46.47 Lacs 1.01 Crore 2.00 Crore 3.80 Crore


50,000 41.24 Lacs 1.16 Crore 2.52 Crore 5.00 Crore 9.49 Crore


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DSP BlackRock Mutual Fund: Schemes’ SIP Performance

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SIP returns as on Jun 30, 2011

^Benchmark.' Since inception’ returns are calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returns and scheme NAVs are for Regular Plan- Growth Option. Returns and NAV only for DSPBREF are for Regular Plan - Dividend Option assuming reinvestment of dividend. The CAGR is computed based on IRR since the SIP installments are received at different intervals across the SIP period. XIRR calculates internal rate of return for a series of cash flows As on Jun 30, 2011, NAV of DSPBREF: 48.606, value of S&P CNX 500: 4,522.95; NAV of DSPBRTEF: 101.687, value of BSE 100: 9,803.89. SIP investment returns table assumes an investment of Rs. 1000/- per month. 'Since inception‘ returns calculated from the 'Start date of SIP' (Considered to be the Date of Allotment). DSPBREF, which is benchmarked to the S&P CNX 500 Index, is not sponsored, endorsed, sold or promoted by India Index Services & products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of DSPBREF marked to such index. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Time Period Investment till date DSPBR Equity Fund S&P CNX 500

Value (INR) Value (INR) CAGR (%) Value (INR) CAGR (%)

Last 1 Year 12,000 11,880 (1.86%) 11,682 (4.91%)

Last 3 Years 36,000 49,630 22.07% 45,794 16.32%

Last 5 Years 60,000 90,301 16.39% 76,432 9.63%

Since Inception 1,70,000 12,39,221 25.12% 6,14,270 16.61%

Start Date of SIP April 29, 1997

Time Period Investment till date DSPBR Top 100 Equity Fund BSE 100


Last 1 Year 12,000 12,124 1.93% 11,759 (3.73%)

Last 3 Years 36,000 47,771 19.32% 45,912 16.50%

Last 5 Years 60,000 86,873 14.81% 77,215 10.04%

Since Inception 99,000 2,67,621 23.32% 2,04,324 17.05%

Start Date of SIP March 10, 2003

Source: Internal

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* The Infrastructure Growth and Economic Reforms Fund^Benchmark.' Since inception’ returns are calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returns and scheme NAVs are for Regular Plan- Growth Option. The CAGR is computed based on IRR since the SIP installments are received at different intervals across the SIP period. XIRR calculates internal rate of return for a series of cash flows As on Jun 30, 2011, NAV of DSPBROF: 86.006, value of S&P CNX 500: 4,522.95; NAV of DSPBRITF: 44.028, value of BSE 100: 9,803.89. SIP investment returns table assumes an investment of Rs. 1000/- per month. 'Since inception‘ returns calculated from the 'Start date of SIP' (Considered to be the Date of Allotment). DSPBROF, which is benchmarked to the S&P CNX 500 Index, is not sponsored, endorsed, sold or promoted by India Index Services & products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of DSPBROF marked to such index. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Time Period Investment till date DSPBR Opportunities Fund S&P CNX 500


Last 1 Year 12,000 11,755 (3.79%) 11,682 (4.91%)

Last 3 Years 36,000 49,106 21.30% 45,794 16.32%

Last 5 Years 60,000 83,940 13.42% 76,432 9.63%

Since Inception 1,33,000 6,27,243 26.02% 3,92,653 18.37%

Start Date of SIP May 16, 2000

Time Period Investment till date DSPBR India TIGER Fund* BSE 100


Last 1 Year 12,000 11,081 (13.96%) 11,759 (3.73%)

Last 3 Years 36,000 42,306 10.80% 45,912 16.50%

Last 5 Years 60,000 71,580 7.00% 77,215 10.04%

Since Inception 84,000 1,39,615 14.27% 1,38,527 14.06%

Start Date of SIP June 11, 2004

Source: Internal


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^Benchmark.' Since inception’ returns are calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returns and scheme NAVs are for Regular Plan- Growth Option. The CAGR is computed based on IRR since the SIP installments are received at different intervals across the SIP period. XIRR calculates internal rate of return for a series of cash flows As on Jun 30, 2011, NAV of DSPBRSMF: 17.595, value of CNX Mid Cap: 7,971.50; NAV of DSPBRTSF: 16.801, value of S&P CNX 500: 4,522.95. SIP investment returns table assumes an investment of Rs. 1000/- per month. 'Since inception‘ returns calculated from the 'Start date of SIP' (Considered to be the Date of Allotment). DSPBTSF, which is benchmarked to the S&P CNX 500 Index, is not sponsored, endorsed, sold or promoted by India Index Services & products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of DSPBRTSF marked to such index. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Time Period Investment till date DSPBR Small & Mid Cap Fund CNX Midcap


Last 1 year 12,000 11,777 (3.45%) 11,309 (10.56%)

Last 3 Year 36,000 55,494 30.32% 48,683 20.68%

Since Inception 55,000 84,269 18.79% 73,400 12.60%

Start Date of SIP November 14, 2006

Time Period Investment till date DSPBR Tax Saver Fund S&P CNX 500


Last 1 year 12,000 11,589 (6.33%) 11,682 (4.91%)

Last 3 year 36,000 48,008 19.68% 45,794 16.32%

Since Inception 53,000 70,839 13.17% 65,628 9.65%

Start Date of SIP Jan 18, 2007

Source: Internal


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^Benchmark.' Since inception’ returns are calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returns and scheme NAVs are for Regular Plan- Growth Option. The CAGR is computed based on IRR since the SIP installments are received at different intervals across the SIP period. XIRR calculates internal rate of return for a series of cash flows As on Jun 30, 2011, NAV of DSPBRTF: 32.078, value of BSE TECk: 3,694.45; NAV of DSPBRMCF: 15.263, value of BSE SMALL CAP: 8,156.60. SIP investment returns table assumes an investment of Rs. 1000/- per month. 'Since inception‘ returns calculated from the 'Start date of SIP' (Considered to be the Date of Allotment). Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Time Period Investment till date DSPBR Technology.com Fund BSE Teck


Last 1 Year 12,000 11,585 (6.39%) 12,136 2.11%

Last 3 Years 36,000 47,763 19.31% 46,278 17.06%

Last 5 Years 60,000 79,108 11.02% 72,324 7.42%

Since Inception 1,33,000 4,60,022 20.96% 3,00,613 13.96%

Start Date of SIP May 16, 2000

Time Period Investment till date DSPBR Micro Cap Fund BSE Smallcap Index


Last 1 Year 12,000 11,386 (9.40%) 10,688 (19.73%)

Last 3 Years 36,000 57,114 32.59% 46,267 17.09%

Since Inception 48,000 73,001 21.43% 57,117 8.69%

Start Date of SIP June 14, 2007

Source: Internal


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A Rupee Saved Is A Rupee Earned –A Long Journey Begins With A Small Step

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DSP BlackRock Equity Fund (DSPBREF) is an open ended growth Scheme, seeking to generate long term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of issuers domiciled in India. DSP BlackRock India T.I.G.E.R Fund (The Infrastructure Growth and Economic Reforms Fund) (DSPBRITF) is an open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing investments in infrastructure, both by the public and private sector. DSP BlackRock Opportunities Fund (DSPBROF) is an open ended growth Scheme, seeking to generate long term capital appreciation and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the Investment Focus of the Scheme. DSP BlackRock Top 100 Equity Fund (DSPBRTEF) is an open ended growth Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of the 100 largest corporates, by market capitalisation, listed in India. DSP BlackRock Small and Mid Cap fund (DSPBRSMF) is an open ended equity growth scheme, primarily seeking to generate long term capital appreciation from a portfolio substantially constituted of equity and equity related securities, which are not part of top 100 stocks by market capitalization. DSP BlackRock Tax Saver Fund (DSPBRTSF) is an open ended equity linked savings scheme, whose primary investment objective is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. DSP BlackRock Technology.com Fund (DSPBRTF) is an open ended growth Scheme, seeking to generate long term capital appreciation, and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the investment focus of the Scheme. DSP BlackRock Micro Cap Fund (DSPBRMCF) The primary investment objective of the Scheme is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities, which are not part of the top 300 companies by market capitalisation. Asset Allocations: DSPBREF - Equity & equity related securities: 90%-100%; Debt & money market securities: 0%-10% (Debt securities/instruments are deemed to include securitised debts). DSPBRITF - Equity & equity related securities: 90%-100%; Debt, securitised debt & money market securities 0%-10%; ADR, GDR & foreign securities: 0%-25%. DSPBROF - Equity and equity related securities: 80%-100%; Fixed income securities (Debt & money market securities): 0%-20% (Debt securities/instruments are deemed to include securitised debts). DSPBRTEF - Equity & equity related securities: 90%-100%; Debt, securitised debt & money market securities: 0%-10%. DSPBRSMF - Equity and equity related securities which are-(A) not part of top 100 stocks by market cap: 65% - 100%, (B) in the top 100 stocks by market cap: 0% - 35%; Of (A) & (B), investments in ADRs, GDRs & foreign securities: 0% - 25%; Debt and Money Market Securities: 0% - 10%. DSPBRTSF: Equity and equity related securities: 80% to 100%; (investments in ADRs, GDRs and foreign equity securities: 0% to 20%); Debt, securitised debt and money market securities: 0% to 20% (Exposure to Securitised debt will not exceed 10% of the net assets of the Scheme). DSPBRTF: Equity & equity related securities: 80%-100%; Fixed income securities (Debt & money market securities): 0%-20% (Debt securities/instruments are deemed to include securitised debts). DSPBRMCF: Equity and equity related securities which are-(A) not part of top 300 stocks by market cap: 65% - 100%, (B) in the top 300 stocks by market cap: 0% - 35%; Of 1(A) & 1(B), investments in ADRs, GDRs & foreign securities: 0% - 25%; Debt and Money Market Securities: 0% - 35% (Debt securities may include securitised debt upto 10% of the net assets). Common Features: Nomination facility available, subject to applicable conditions as per the Statement of Additional Information (SAI) and Scheme Information Document (SID). Declaration of NAV on all Business Days. Redemption normally within 3 Business Days. Sale and Redemption of Units on all Business Days at Purchase Price and Redemption Price respectively. SIP only in Regular Plan of the schemes which offer Regular and Institutional Plans. SWP and STP available in each plan of the schemes. Minimum Investment: Regular Plan – Rs. 5,000/- ; Institutional Plan – Rs. 1 crore. (Only for DSPBRTSF: Rs. 500/-) Entry Load: NIL. Exit Load –Holding Period < 12 months: 1%, Holding period >= 12 months: NIL. (Only for DSPBRMCF: Holding Period < 12 months: 1%, Holding period >= 12 months: NIL and for DSPBRTSF: N.A). Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSP BlackRock Investment Managers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Schemes’ objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Schemes can go up or down depending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Schemes. Investors in the Schemes are not being offered a guaranteed or assured rate of return. Each Scheme/Plan is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. If the aforesaid point (i) is not fulfilled within the prescribed time, the Scheme/Plan concerned will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investor’s holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. The names of the Schemes do not in any manner indicate the quality of the Schemes, their future prospects or returns. For scheme specific risk factors, please refer the relevant Scheme Information Document. For more details, please refer the Key Information Memorandum cum Application Forms, which are available on the website, www.dspblackrock.com, and at the ISCs/Distributors. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.

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dsp blackrock mutual fund systematic investment plan presentation jun 30, 2011

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