How to achieve Goals in Life

1. How to achieve Goals in Life

2. What is the Average Age when one starts Earning? Let us begin with a little quiz 25 Years

3. What is the Average Retirement Age? 60 Years

4. What is an Average Income of an Middle-Class House-hold? Rs.15,000/- p.m.

5. How much can a person save on a regular basis? Rs.5,000/- p.m.

6. If a person can save Rs.5,000/- per month What will be his wealth when he retires? Assuming: He increases his investments by 5%every year Invests in an Asset class that gives returns of 20%

7. At Age 60 his wealth would have been Rs.27 Crores

8. THE TRUTH Creating Wealth is Easy We can all be Wealthy

9. How can you create wealth? Start Saving Early The longer you save, the more you make Save in the Right Asset Class This will dictate how much wealth you create … Save Regularly Even a small amount saved regularly, is good

10. 27 Crores* 4.90 Crores* 40 years 25 years 60 years Starting Early Power of Compounding Give time to your investments rather than timing Assumptions: (a) Savings grows at 5% annually (b) Returns assumed at 20% CAGR

11. Equity market (represented by BSE Sensex) has outperformed all other investment avenues Sensex Bank Deposits Company Deposits Inflation Gold Selecting Right Asset Class

12. Past Performance (BSE Sensex) In past27 years BSE Sensex has given about 18% returns • This is in spite of … • Two wars • At least three major financial scandals • Assassination of 2 prime ministers • At least 3 recessionary periods • 10 different governments and • An unfair share of natural disasters

13. Equities: Not Risky in Long Run 18.57% 0 / 13

14. Average Purchase cost will be less Rupee Cost Averaging At higher prices – less units At lower prices – more units Automatic Timing Save Regularly Disciplined Investing through Systematic Investment Plans (SIPs) is the ideal way to reduce risk Twin Benefits of Investing Regularly Falling Market Rising Market Market Units Purchased Units Purchased Market

15. Past Performance (SIP) Performance of Systematic Investment Plans (SIPs) in Mutual Fund Equity oriented schemes Also Equity Mutual Funds have outperformed Sensex, as shown above Figures are as on 30th June 2006. For MF SIP performance for 5 year & 10 years around 30 and 5 large schemes respectively, have been considered. Mutual fund investments are subject to market risks. Past performance may or may not be sustained in future. Please read the offer document offer investing.

16. X X X X Wisdom • “We do not need to be wealthy to be an investor …But we can be wealthy if we are investors” • The Right way to create wealth … • Buying potential big winning stocks • Successfully timing the markets • Following Expert Advisors recommendations • Saving a lot of money • Wealth can be successfully created if we just follow the three basic principles ... • Starting early and saving for long • Investing in the right asset class • Investing Regularly – big or small

17. Using the Wisdom Child Education Child Marriage Car Dream House We all have goals in life like…

18. Using the Wisdom We can direct our savings in such a manner that we achieve our goals, the way we wish DISCIPLINED SAVINGS + SUFFICIENT TIME + RIGHT ASSET CLASS = GOAL ACHIEVEMENT

19. Investor Base Across Various Financial Products 240 250 200 110 150 100 40 17 16 15 1.5 50 0 Insurance Mutual Credit Funds Cards Cards Trading Debit Banking Insurance Online General Life Penetration of Financial Products Customers in millions Source: www.rbi.org.inwww.irdaindia.org www.sebi.gov.in Penetration of Mutual Funds is very low … Going forward, the opportunity is big …

20. Low Penetration Few people have been exposed to the idea & advantages of mutual funds and even fewer actually invest in mutual funds, because of lack of adequate no. of advisors *for House Holds savings *Figures are approx. Opportunity to offer such products to clients … Every person can be a customer !!

21. Excellent Past Performance In past 28 years Equities have outperformed all asset classes giving over 19% returns (BSE Sensex) every year, making every 1 Re. grow 130 times. Mutual Fund Equity schemes have delivered very attractive returns in last 5 years, giving over 39% returns annually

22. Excellent Past Performance Mutual Fund Equity schemes have delivered very attractive returns in last 5 years, giving over 39% returns annually Opportunity for you to offer your clients with such equity-related products for long-term wealth creation

23. Sustainable Earnings • Superior earnings for Mutual Funds V/s Other products For illustrative purpose only … Total Earnings for the Year Yearly mobilisation of 10 Lacs in each Insurance, PPF, NSC & Postal Schemes vs. only 1 Mutual Fund SIP of Rs.10 lacs (yearly) for 30 years Assuming 2% upfront 0.30% trail in MF, 4% upfront in Postal, 1% upfront on NSC & PPF and 20%, 10%, 5% for 1, 2 & subsequent years in Insurance

24. Mutual Funds – A Great Product • Transparency • Low Transaction Cost • MFs also offer great tax benefits : • no long term capital gains on equity funds, • tax free dividends & • eligibility u/s 80C • Professional Management • Portfolio Diversification • Reduction in Risk • Choice of Products • Flexibility and convenience • Liquidity Great product for investment, wealth protection, creation, preservation …

25. Suitability for Any One • Mutual Funds is suitable for any investor • big or small, • aggressive or conservative & • long-term or short-term • with any investment objective • There are over 30 AMCs with hundreds of schemes for choice • You can offer any product / asset class of choice - equities (domestic & international), debt, gold, commodities, derivatives, etc

26. Thank you very much • For clarification and more details please dial -8986636047. 9031326165 or write to us on yourinvestment@rediffmailcom . • Contact for all types of Investment and Financial Advice • Sanchita Dey (ARN – 82297) N J Investments – 63285 • Sanjeev Dey 9204065873