systematic investment plan - india the sip amount and tenure of sip are assumed figures for the...

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Systematic Investment Plan

Did you know?

Source: Internal analysis. Data as on Feb 28, 2019

If your current monthly expenses are ` 30,000/- per month, then after 20 years you will require ̀ 80,000/- a month to just maintain the same lifestyle!

An education degree for your child which currently costs ` 20 lakh could cost over ̀ 34 lakh after 11 years!

In 1990 petrol price was ̀ 9.84 and ̀ 78 today! It has increased 7.5 times in 28 years!

Sensex has grown from approx. 700 points in 1990 to approx. 35,867 points on 28�� February, 2019, thus having shown a growth of 50x over a span of 28 years.

1

Value of money over time

Over FY79-18 inflation on an average has been 6.11%, eroding purchasing power of ` by 95%

Source: Bloomberg, MOAMC internal analysis, Data as on Feb 28, 2019 Note: The information herein is used for comparison purpose and is illustrative and is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as an investment advice to any party. Past performance may or may not be sustained in future.

2

4.84

100

40

60

80

100

20

-

Inflation erodes purchasing power of money

CPI=Consumer Price Index

Rupee

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Importance of good investments

All individuals need to invest for:

Re�rement

Child’s educa�on

Child’s marriage Home

Other family obliga�ons

Car

Medical emergency

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3

Investors usually are scared of …

The risk that an investment can be illiquid

The downside risk in equities

The risk of timing the

market

The risk of market volatility

The risk of losing some or

all of the amount

invested.

4

Life Stages of an Investor

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

Earnings (Consump�on + Savings)

Consump�on

Savings and investments

22 Young Independent

60 Re�rement

40 Middle Age

27 Young Married

5

Avenues of savings and investments

Source: Bloomberg, MOAMC internal analysis, Data as on Feb 28, 2019 Note: The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

Cumulative annualized returns from 1979-2018:

Equities outperform other asset classes over the long term

6

N o

m in

al V

al u

e

If you had invested Rs 100 .....

4,662 2,353

36,867

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

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