nj gap presentation new jan 2015

7/21/2019 NJ GAP Presentation New Jan 2015

1/22

THERE ARE IMPORTANT FINANCIAL GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPS

GAPGAP

CHILDS

MARRIAGEGood plans shape good decisions. That's why good

planning helps to make elusive dreams come true.

Geoffrey Fisher

YOUR OWNRETIREMENT

To enjoy a long,

comfortable retirement, save more today.Suze Orman

CHILDSHIGHER EDUCATIONThe one thing we can do is invest in the quality

of education, especially higher education.Ron Kind


2/22


GAPGAP

Dear Investors,

NJ GAP 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 GAP 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.

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPSGAPGAP

Presenting


3/22

INFLATIONTHE BIGGEST HURDLE IN YOUR FINANCIAL GOALS ACHIEVEMENT

As per RBI estimates WPI inflation has grown by 6.8% in the last 30 years

Reduced value of money @ 8% inflation p.a.Source : RBI, Bloomberg, NJ Internal

R1,00,000/-

1995

2003

2015

R65,908/-

R33,825/-

R13,518/-

1990

How Inflation is eating your Money

3200

5600

26720

9.2%

9.84

32.49

70.95

8.6%

4.08

21.21

60.11

11.9%

6.00

13.00

50.00

9.2%

1990

2003

2015

Actual Inflation

GOLD PETROL DIESEL MILK


GAPGAP


4/22

INFLATION

RETIREMENT

CHILDSHIGHEREDUCATION

2005 2015 2025*2005

R

15,000/-R

25,000/-R

60,000/-

2015 2025*HIGHER EDUCATIONHOUSE HOLD EXPENSE

R

3.16 lacsR

18.70 lacsR

36 lacs

*Cost in the year 2025 assumed at 8% inflation p.a. on 2015 prices

CHILDS

MARRIAGE

PLANNING

2005

R4-5 LACS R10-12 LACS R25-30 LACS

2015 2025*

MARRIAGE COST

Fees of PGDBM in IIM Bnagalore, Source: Times of India


GAPGAP


5/22

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


GAPGAP


6/22

INVEST IN RIGHT ASSET CLASS

THE RIGHT WAYSIMPLE , SMART & TIME TESTED FORMULA TO ACHIEVE GOALS

START EARLY

SAVE REGULARLY

GOAL ACHIEVEMENT

=

+

+


GAPGAP


7/22

START EARLYGIVE TIME TO YOUR INVESTMENT RATHER THAN TIMING AND BENEFIT

FROM THEPOWER OF COMPOUNDING

MR SAXENAMR GUPTA

SAVING STARTING AGE 25 YEARS

MONTHLY SAVINGS R5,000/-

SAVING TILL AGE 60YRS 35 YEARS

TOTAL AMOUNT SAVED R21 LACS

WEALTH AT AGE 60 YRS R5.70 CRORES

45 YEARS

R15,000/-

15 YEARS

R27 LACS

R0.92 CRORES

0.92 CRORES

5.70 CRORES

25 YEARS 60 YEARS45 YEARS

Systematic investing has a compounding effect on your investments. In the long term, an investment as low asR

5000/- per month swellsup 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.

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 regularlyevery 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.


GAPGAP


8/22

RIGHT ASSET CLASSEQUITY MARKET HAS OUTPERFORMED ALL OTHER INVESTMENT AVENUES

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.

Growth in Different Asset Classes from March 1981 - March 2014Source: Gold-Handbook of Statistics on Indian Economy, RBI. Silver - Handbook of Statistics on I ndian Economy, RBI. Sensex - www.bseindia.com, 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

Equity mutual funds over a long-termhorizon offer better risk-return pay off

Liquidity, Transparency and Convenience+

15.7

9.98.9

9.4

2.4

9.4

2.4

6.9

INFLATION GOLD SILVER BANK DEPOSITS CO. DEPOSITS SENSEX

2.9

1.9

8.3

18

16

14

12

10

8

6

4

2

0

Actual Gain Real Gain 1,02,826

8,241

17,352 17,442 20,16215,046

INFLATION GOLD SILVER CO. DEPOSITS BANK DEPOSITS SENSEX

110000

90000

70000

50000

30000

10000

0

Growth of Rs. 1,000 in Different Asset Classes


GAPGAP


9/22

INVEST REGULARLYDISCIPLINED 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. SYSTEMATIC INVESTMENT PLAN (SIP) AN IDEAL WAY TO REDUCE RISKAVERAGE COST PER UNIT < AVERAGE PURCHASE PRICE PER UNIT

1000

1000

1000

1000

100.00

125.00

111.11

90.91

4000

0

0

0

400

0

0

0

400

4400 @ NAV R11

10

427.02

4697.22 @ NAV R11

9.36

1

2

3

4

10

8

9

11

The above example is merely an illustration of Rupee Cost Averaging. The NAVs and returns generated arepurely indicative and do not depict the performance of any mutual fund scheme. The actual results may varyfrom the depicted figures. No guarantee or assurance of return is being offered by the Mutual Fund or NJ.

(R) (R)

(R)

(R)

Rising Market

Market Unit Purchased

Falling Market

Unit PurchasedMarket


GAPGAP


10/22

SENSEX RETURNSEQUITY NOT RISKY IN LONG TERM

266.88

-46.78

24.85

35

23

12

34.29

81.76

-15.21

18.00

33

27

6

18.18

53.04

-4.77

17.50

31

28

3

9.68

34.71

-2.09

17.11

26

25

1

3.85

33.94

2.24

16.65

24

24

0

0.00

27.40

6.49

15.66

21

21

0

0.00

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 basedon data available on www.bseindia.com 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.

Reducing probability of loss with increased investment tenure


GAPGAP


11/22

Best market timing (almost impossible) has yielded less than 2% additional return than

systematic investment. Time to go systematic.

TIME IS IMPORTANTMARKET TIMING DOES NOT MATTER OVER THE LONG TERM

INVESTING IN THE BSE SENSEX - 26 YEARS

Period from Jan 1988 to December 2014

12.70%

15.34%

14.10%

Data source: www.bseindia.com; capitalmarket


GAPGAP


12/22

SENSEX RETURNS

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

YEAR SENSEX INVESTMENT

1979 100 R1,00,0002014 27,499 R2,74,99,000

*As on 31 Dec 2014

IN PAST 36 YEARS BSE SENSEX HAS GIVEN 17%RETURNS (CAGR)


GAPGAP


13/22

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% Compoundingwhat will be the value of

Give maximum TIME to your investment

to get most of POWER OF COMPOUNDING

R 1/-

R 2/-

After 5 years

R 4/-

After 10 years

R 8/-After 15 years

R 64/-After 30 years


GAPGAP


14/22

SYSTEMATICINVESTMENT 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 yourgoals. For Investment purpose, we often wait to collect a large amount of money and investment itall at once. Through SIP you can start with smaller amount on a monthly basis and create wealthover the long term.


GAPGAP


15/22

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).

SIP PERFORMANCEEQUITY NOT RISKY IN LONG TERM

PERFORMANCE OF SIP IN DIVERSIFIED EQUITY MF SCHEMES

CAGR (%)Category

21.88%

15.61%

Avg of MF Schemes

Sensex

15 yrs Performance Returns on R10,000 invested per monthCurrent Value (R)

1,12,87,175

64,99,490(Total number of schemes covered : 34, Returns as on 31st Dec. 2014

SIP Amount of R10,000 per month. Total investment R18 Lacs)

INVESTEDR SIP R10,000/-PER MONTH

RCURRENT VALUE

*Returns as on 31st Dec 2014. 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


GAPGAP


16/22

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).

SIP PERFORMANCEPERFORMANCE OF SIP IN BALANCE FUND MF SCHEMES

CAGR (%)Category

19.15%

15.61%

Avg of BALANCE Schemes

Sensex

15 yrs Performance Returns on R10,000 invested per monthCurrent Value (R)

88,60,020

64,99,490(Total number of Balance fund scheme covered 7, Returns as on 31stDecember 2014. SIP Amount of R10,000 per month. Total investment

R18 Lacs)

INVESTEDR SIP R10,000/-PER MONTH

R CURRENT VALUE

*Returns as on 31st December 2014. For Schemes with dividen d option, dividend reinvestment has been considered

on the date of dividend. Investment assumed to be done on 10th of every month. Source: NJ Internal


GAPGAP


17/22

NJ GAP 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 asthe investment duration of their choice. NJ GAP would enable the

investors to plan for their goals without needing to review,

re-invest or for that matter time the markets.

With NJ GAP you can plan to fulfill all your desires in life.

REAP THE BENEFIT OF COMPOUNDING THROUGH SIP

WHY NJ GAPWITH NJ GAP YOU CAN PLAN TO FULFIL YOUR GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPSGAPGAP


GAPGAP


18/22

NJ GAP FEATURES

Monthly Investment Option

2000 5000 10000

15000 20000

NJ GAP OFFERS INVESTORS WITH GREAT ADVANTAGES

INVESTMENTS IN THE RIGHT ASSET CLASS

With NJ GAP, you would invest in Equities, an assetclass 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 GAP are TAX FREE (1 year & above

investment only).

INVESTMENTS ARE HIGHLY LIQUID

There is no lock-in* period of any kind andinvestments can be very easily redeemed at any

time wish.

CONVENIENCE

You only have to fill the NJ GAP application form

and the Auto Debit (ECS) form and submit it with

one cheque.


GAPGAP


19/22


GAPGAP

SIP READY RECKONERSIP 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.


20/22


GAPGAP

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.

N J T R A D I N G & D E M A T A C CO U N T

TADATADAEASY - ACCURATE - CONVENIENT

NJ TRADING & DEMAT ACCOUNT TRANSACTION FACILITIES

CAPITAL MARKET

Buy

Sell

EXCHANGE TRADED FUND

Buy

Sell

Systematic Investment Plan (SIP)

MUTUAL FUNDS

Purchase

Systematic Investment Plan (SIP)

Inter AMC Switch

Inter AMC STPRedemption

NJ TRADING & DEMAT ACCOUNT FEATURES


21/22


GAPGAP

ONE TIME DOCUMENTATION

New KYC & bank proof required*

No other documents needed

SINGLE WINDOW - MULTIPLE PRODUCTS

Mutual Funds

Equity SharesExchange Traded Funds

EASY & MULTIPLE MODES OF TRANSACTIONS

Online

Mobile

Offline***

On Phone*** (Call)

System driven transaction processHIGH ACCURACY & SPEED

Inter AMC Switch/STP

SIP In Exchange Traded Funds

INNOVATIVE TRANSACTIONS.

NO GEOGRAPHICAL BARRIER

Transaction can be done from anywhere

Transaction report

Valuation report

Profit & Loss report

COMPREHENSIVE REPORTS

OPERATIONAL EASE

Single payment against multiple transactions

Single contact point for all information and updates

TAX BENEFIT U/S 80CCGAdditional tax benefit with RGESS

All eligible securities available**

CONVENIENT & SECURED PAYMENT OPTIONS

Debit Card

Net Banking

Auto Debit/ECS

Cheques

CENTRALISED CUSTOMER CAREAll query solutions at single point

Call 1800 200 0155

AUTO TRANSACTION ALERTSSMS/Email alerts for transaction done

NJ TRADING & DEMAT ACCOUNT FEATURES

* 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.


22/22


GAPGAP

CALL TODAY AND ACHIEVE FOR FINANCIAL GOALS...

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 aretherefore 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.

WEALTH

FINANCIAL

PRODUCTS

DISTRIBUTOR

NETWORK

PARTNER

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