Systematic Investment Plan (SIP)

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Post on 23-Aug-2014



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DESCRIPTION Min Investment of only Rs.500 Benefit from the Power of Compounding Link to your Financial Goals


  • Systematic Investment Plan (SIP) Simple Min Investment of only Rs.500 Intelligent Benefit from the Power of Compounding Practical Link to your Financial Goals
  • Did you know ? If your current monthly expenses are Rs. 30,000/- p.m, after 20 years you will require Rs. 80,000/- p.m to maintain the same lifestyle Assuming inflation rate of 5%
  • Did you know ? An education degree for your child which currently costs Rs. 10 lakh will cost Rs. 21 lakh after 15 years. Assuming inflation rate of 5%
  • Individual Investor Needs: Investment Goals All individuals need to save for - Retirement - Childs education / marriage - Medical emergency - Other family obligations Every individual has one or more of the above goals
  • Individual Investor: Life Stages Earnings Consumption Savings 22 Young Independent 27 Young Married 40 Middle Age All individuals have a finite period to save for their investment goals 60 Retirement
  • Value of Money over time Impact of inflation on monthly expenses of Rs. 30,000 today Value of Rs. 100,000 over time 100,000 79,599 78,353 62,368 48,102 38,288 37,689 30,000 Today 5 years 15 years 20 years Today At inflation of 5% Investors need to beat inflation 5 years 15 years 20 years
  • Performance of Various Asset Classes Cumulative annualised returns 1980-2004 15.6% 10.3% 6.7% 8.9% 5.7% 3.55% -1.1% Inflation Gold Growth Bank FDs Real Growth Equities outperform other asset classes over the long term BSE Sensex
  • Individual investors are scared of .. The Downside Risk in Equities The Risk of Market Volatility The Risk of Market Timing
  • What else makes a material impact on investments in equity ?
  • Investing in the BSE Sensex - 25 years Returns are from 1981- Dec 2005 16.90% 15.07% Fixed investment at highest sensex value every year Fixed investment at lowest sensex value every year Market timing does not matter over the long term 16.02% Fixed investment on 1st day of every month
  • The Power of Compounding Debt Instrument Monthly investment Assumed BSE Sensex Scenario A BSE Sensex Scenario B Rs. 5,000 Rs. 5,000 Rs. 5,000 10% annualised return Final corpus From Jan 1, 1984 to Dec 31, 2004 - a 21 year period Rs. 43 lakh 15% Rs. 89 lakh 20% Rs. 1.9 crore
  • Summary Investors needs to save regularly and invest those savings in higher return assets to create wealth Long Term Systematic Monthly Investment in equity schemes is ideal for this
  • How Do You Achieve Your Financial Goals Retirement Childs education - international Family commitments - medical emergency, etc
  • Retirement Planning Monthly Household Expenses 83,579 Retirement corpus required to meet post retirement expenses. (if invested at 7%) 1.4 crore 30,000 Monthly investment needed to meet post retirement expenses Inflation 5% at 12% 21 Yrs 12,583 at 15% Today At the time of retirement 8,083 at 18% 5,090
  • Childs Education Educational Degree 34,20,000 Monthly investment needed to achieve this goal at 12% 12,456 20,00,000 at 15% at 18% Inflation 5% 11 Yrs Present When your child actually goes for this degree 10,166 8,237
  • Childs Marriage 43,70,000 Monthly investment needed to achieve this goal at 12% at 15% 20,00,000 Inflation 5% 16 Yrs Present When marriage actually takes place 7,509 5,466 at 18% 3,925
  • So What Are The Benefits Of Investing Through A Systematic Investment Plan !
  • Benefit : 1 The Benefit of Long Term Equity Investment - Equities give superior returns among all asset classes over the long term - Mutual Fund has a track record of consistent good performance relative to index.
  • Benefit : 2 The Benefits of Systematic Monthly Investment - Takes out the risk of market timing - Adds the benefits of the power of compounding and rupee cost averaging
  • Benefit : 3 Flexibility - You can choose from a wide array of schemes - You can decide to keep invested amounts in an earlier scheme & invest future SIP instalments into a new scheme
  • Benefit : 4 Added Convenience - Auto debit facility across major cities in India - Regular account statements - Redemption request directly credited into your bank account
  • Make your investment goals a reality Start a S.I.P. today !
  • A Rupee Saved Is A Rupee Earned A Long Journey Begins With A Small Step For More Information Visit


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