Systematic Investment Planning

1. Systematic Investment Planning Sampada Investment Consultancy Services Ph : 0-9896151628 Sampada@aol.in

2. Financial Planning • Gazing in a crystal ball and assessing what lies ahead in future is something that not many of us undertake. • We are so obsessed with the present that we never think about the future. • Financial insecurity is a risk, which is inherent in everybody's lives. However, this is a risk that most of us fail to realise. • Your financial applecart may get upset if you have insufficient retirement funds, large outgo on children's education & marriage, housing, unforeseen expenses as also inflation.

3. Battle with Inflation • An MBA education which required just Rs. 50,000 in 1980 costs around Rs. 5 lacs today. • You could have bought an Ambassador car, (that was the luxury car then) for just Rs. 60, 000. Today the same Ambassador (even though it is no longer a luxury car) would cost you Rs. 4,00,000.

4. Battle with Inflation • Inflation (or rise in prices) is always the silent killer. It erodes the value of money with passage of time. • A monthly expense of Rs. 20,000 today would shoot up to Rs. 85,000 after 25 years, if the inflation rate is 6%. Since the living standards of people actually go up over the years, the actual expense may even be higher.If the return on retirement funds is 8%, one would need to save Rs. 1.25 crores to generate a monthly income of Rs. 85,000. However, this is not the only savings that one needs to do. You also need to save for expenses related to housing, children's education and marriage, holidays and innumerable other major expenses, during your lifetime. You can reduce a lot of stress in your life and honor your financial commitments with a little bit of discipline and financial planning.

5. Financial planning brings you a lot of benefits • It puts you in control of your future. You no longer need windfall gains to fulfill your needs. • It removes stress from future years. As and when your needs are met, you have more disposable income in your hands.

6. Solution : • Systematic Investment Plans are an excellent mode for planning your future. Investing a fixed amount on a regular basis is known as Systematic Investment. • ‘Systematic' because it is a methodical way of investing. It helps you do away with the adhocism that is generally associated with investments, and thereby achieve your financial goals.

7. SIP helps you to • Inculcate financial discipline Helps you make investment your first priority from it being your last priority.  • Reduce the risk An SIP helps you average out your cost and thereby reduce risk resulting in generating superior returns. It is the best way to participate in equity markets without taking too much of risk.   • Compound the returns Each rupee you invest earns a return, which ends up as more rupees to earn a return, allowing your investment to grow at a fast pace. Systematic investing, thanks to the power of compounding, helps you reach your investment goals sooner.   • Plan and build for your future It helps you to attend to your long term goals before you're tempted to spend the money on anything else.   • Accumulate Wealth in a much relaxed manner It is designed to help accumulate wealth over the long-term, without having to keep aside huge sums of money (an SIP can be started with as little as Rs. 1,000 a month). • Overpower the temptation to spend lavishly An SIP acts as a forced saving, and thereby helps you overpower the temptation to spend unnecessarily.

8. Thank You Sampada Investment Consultancy Services Ph : 0-9896151628 Sampada@aol.in