Invest in Equity Markets through Mutual Funds

The smarter way to invest

Investment in Equity Markets through Mutual Funds is getting popular amongst investors.

Like most other investors, you may also have the following queries:

There are certain myths regarding

investment in Equity Markets through

Mutual Funds. Let’s demystify those!

Why should you invest in Equity

Markets through Mutual Funds?

How should you invest in Equity

Mutual Funds?

How should you choose the right

Equity Mutual Fund scheme for

investment?

Let us answer these, one by one

How to invest in Equity Mutual

Funds through ICICIdirect.com?

What is a Mutual Fund?

Investments in direct equity requires

Constant monitoring and knowing the right time to enter & exit

Expertise to pick the right stock

So let’s start with understanding - What is a Mutual Fund and how does it work?

A Mutual Fund is an investment vehicle that pools money from investors to invest in securities like

stocks and is professionally managed by experts called Fund Managers.

Investment in Equity Markets through Mutual Funds helps you do away with the above

Access to lot of information for making the right sector and asset allocation

Equity Mutual Fund is an easy and convenient way to invest in Equity markets.

Liquidity

Higher Return Potential

Click to view advantages in details.

Advantages

Professional

Management

Diversification

Lower cost

of investing

Investment

Choice

Convenient

Investment

Options

Liquidity

Advantages of investing in Equity Markets

through Mutual Funds:

How do Equity Mutual Funds work?

Why should you invest in Equity Markets

through Mutual Funds?

Investors

Fund House

Stocks

Returns

Pool their

money with

Fund Manager

invests in

Generates

Passed

back to

Mutual Funds are a great way to invest in equity markets. Equity Mutual Funds have consistently out-

performed their benchmarks.

91.70%

98.30%97.80%

96.00%

98.00%97.50%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

1 Year 3 Years 5 Years 10 Years 15 Years 20 Years

% corpus of Equity Funds* outperforming Sensex

As shown above Equity Mutual Funds have consistently performed better than market(Sensex)

Above 90% of the amount invested of Equity Funds* have out-performed their benchmarks

consistently over time-frame.

Source: Accord FinTech, ICICIdirect Research, Data as on May-end 2016

* Equity Large Cap Funds

Why should you invest in Equity Markets

through Mutual Funds?

Demystifying - Myths around Mutual Fund investments

Mutual funds require large amount of investment

Investment through a Systematic Investment Plan(SIP) can be started with an amount as low as Rs

1000 per month and in case of Lump Sum with Rs 5000.

One needs to invest in several mutual funds for proper diversification

Mutual funds, by nature offers diversification. So holding a large number of funds does not

necessarily offer you better diversification.

Mutual Funds are not transparent

Fund Houses are obliged to follow strict regulations by SEBI designed to protect investors. All

operations are also regularly monitored by the SEBI ensuring high level of transparency.

Mutual Funds are not exciting as stocks

Equity Mutual Funds are designed to deliver superior returns in the long term. Historically, over the

long term Equity Mutual Funds have consistently delivered higher returns than Sensex (market).

Investment in Equity Mutual Fund can be done in either of the following ways:

How should you invest in

Equity Mutual Funds?

You want to invest fixed amounts in a disciplined way on a regular basis.

Lump Sum Systematic Investment Plan(SIP)

You should invest when you want to

invest once.

You should invest when you want to

invest on a regular basis.

SIP is the preferred choice for long-term wealth creation by majority of our customers

How should you invest in

Equity Mutual Funds?

59.7%

40.3%

For other reasons

For long term wealth creation

Source: ICICIdirect Survey

Why do you invest in Equity Mutual Funds?

Majority of our customers prefer investing in Equity Mutual Funds for long term wealth creation.

3 out of our 5 customers prefer to

invest in Equity Mutual Funds for

long term wealth creation.

SIP is an excellent tool for long term

wealth creation.

Let us understand the

benefits of investing through

SIP.

Through SIP Through other modes

49.1%

50.9%

Out of these customers, every

second customer prefers to invest

through Systematic Investment Plan.

Why should you invest through SIPs?

Advantages of investing through a SIP

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16

Average Cost per Unit through SIP

NAV movements of a scheme

Average Cost per Unit through SIP is always at a lower level as you get

more units at lower NAV and less units at higher NAV.

Do away with the worry to time the market

Disciplined approach of investment

SIP inculcates discipline in your investments – i.e. it makes you invest regularly. Disciplined approach in your

investments helps in wealth creation over long term. For example, a monthly SIP of ₹ 5,000 per month growing at

10% p.a., 15% p.a. and 20% p.a. would grow to:

Period (in years)

Principal

Invested

(₹ lakhs)

Final Amount

(₹ lakhs)

@ 10% p.a.

Final Amount

(₹ lakhs)

@ 15% p.a.

Final Amount

(₹ lakhs)

@ 20% p.a.

15 9.00 20.90 33.84 56.71

20 12.00 38.28 75.80 158.07

25 15.00 66.89 164.20 431.34

Assumed returns for illustration purposes only, Systematic Investment Plan at beginning of the month.

Why should you invest through SIPs?

Advantages of investing through a SIP

Get benefit of more time spent in the market

For illustration purposes only. The returns are assumed returns and SIP is at beginning of the period.

With smaller amounts to invest through a SIP, you start investing early thereby giving your investments more time in

the market. This increases the final value of your investments.

Easy on Pockets: Investment through a SIP is possible with amounts as low as Rs 1000 per

month

Selecting the right Equity Mutual Fund scheme on ICICIdirect.com

Research Recommendations:

Easily select Equity Mutual Fund scheme(s) from top-rated schemes recommended by our award-

winning Research after extensive analysis. These recommendations are available on Mutual Funds

Place Order page in the login section.

Choose scheme(s) from our recommendations and start your investment journey. You should

select scheme(s) for starting a SIP from “SIP Portfolio” under Research recommendations.

How should you select the right Equity MF scheme?

0.79

1.93

5.63

10.11

0.97

2.71

11.16

37.81

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

5 Years 10 Years 15 Years 20 Years

S&P BSE SENSEX Our Recommended SIP Schemes Average

ICICIdirect Research Recommended Equity Schemes for SIP – Average Returns w.r.t. benchmark. Resultant

value from Rs 1,000 invested monthly in Sensex & our recommended equity schemes for SIP

Am

ou

nt

in₹

Lakh

s

Our Recommended schemes for SIP have consistently out-performed their benchmarks. You

should also start investing through SIP in our Research recommended schemes for long term

wealth creation.

Source: Accord FinTech, ICICIdirect Research, Data as on July 25, 2016

How should you select the right Equity MF scheme?

Across time-periods, our Research recommended Equity

schemes for SIP have given more returns than Sensex. The

longer the period of investment, more is the out-

performance by our recommended schemes.

~1.2 times the

final value of

Sensex

~1.4 times the

final value of

Sensex

~2.0 times the

final value of

Sensex

~3.7 times the

final value of

Sensex

Advantages of investing through a SIP You should start investing through SIP in our Research recommended

Equity schemes for long term wealth creation.

How to invest through ICICIdirect.com?

Enter User Id, Password, Date of Birth/PAN, select Mutual

Funds to Start in and click on “Login Now”.

Click on “Purchase” to

select scheme(s) to Invest.

On Mutual Funds Place Order page select a scheme

from our Research recommendations and click on

Buy(For Lump Sum)/SIP (Systematic Investment Plan).

Click on Continue to Invest

1

2

4

3

How to invest in SIP through ICICIdirect.com?

Enter SIP details – Frequency,

SIP Period, Start Date and

Installment Amount.

Review the investment details

provided, Accept T&C and click on

“Confirm” to set up your SIP.

A confirmation message with instructions will be

displayed.

Provide other mandatory

details and click on Submit

5 6

7

What are you waiting for?

Start investing through SIP in

our recommended schemes

now and SIP your way to

wealth creation!!

How to invest in Lump Sum through ICICIdirect.com?

Enter amount, select payment

source. .Review the investment details

provided, Accept T&C and click on

“Confirm” to place your order. A

confirmation message will be

displayed.

Provide other mandatory

details and click on Submit

5 6

Thank You