GAP GAP GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPS Presenting GAP - - PowerPoint PPT Presentation

THERE ARE IMPORTANT FINANCIAL GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIP’S

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CHILD’S MARRIAGE

Good plans shape good decisions. That's why good planning helps to make elusive dreams come true.

YOUR OWN RETIREMENT

To enjoy a long, comfortable retirement, save more today.

CHILD’S HIGHER EDUCATION

The one thing we can do is invest in the quality

• f education, especially higher education.

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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.

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Presenting

INFLATION

THE 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

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INFLATION

RETIREMENT CHILD’S HIGHER EDUCATION

2005 2015 2025* 2005

R15,000/- R25,000/- R60,000/-

2015 2025* HIGHER EDUCATION HOUSE HOLD EXPENSE

R3.16 lacs R18.70 lacs R36 lacs

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

CHILD’S 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

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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

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INVEST IN RIGHT ASSET CLASS

THE RIGHT WAY

SIMPLE , SMART & TIME TESTED FORMULA TO ACHIEVE GOALS

START EARLY SAVE REGULARLY

GOAL ACHIEVEMENT =

+ +

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START EARLY

GIVE TIME TO YOUR INVESTMENT RATHER THAN TIMING AND BENEFIT FROM THE ‘POWER OF COMPOUNDING’

MR SAXENA MR GUPTA SAVING STARTING AGE 25 YEARS MONTHLY SAVINGS R 5,000/- SAVING TILL AGE 60YRS 35 YEARS TOTAL AMOUNT SAVED R 21 LACS WEALTH AT AGE 60 YRS R 5.70 CRORES 45 YEARS R 15,000/- 15 YEARS R 27 LACS R 0.92 CRORES

0.92 CRORES 5.70 CRORES

25 YEARS 60 YEARS 45 YEARS

Systematic investing has a compounding effect on your investments. In the long term, an investment as low as R 5000/- per month swells up 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 regularly every 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.

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RIGHT ASSET CLASS

EQUITY MARKET HAS OUTPERFORMED ALL OTHER INVESTMENT AVENUES

It is evident from the graph that in the long term, equity investments have

• utperformed other investment avenues and has beaten inflation by a huge margin.

Growth in Different Asset Classes from March 1981 - March 2014

Source: Gold-Handbook of Statistics on Indian Economy, RBI. Silver - Handbook of Statistics on Indian 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-term horizon offer better risk-return pay off Liquidity, Transparency and Convenience

+

15.7 9.9 8.9 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 Actual Gain Real Gain

1,02,826 8,241 17,352 17,442 20,162 15,046

INFLATION GOLD SILVER

• CO. DEPOSITS BANK DEPOSITS SENSEX

110000 90000 70000 50000 30000 10000 Growth of Rs. 1,000 in Different Asset Classes

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INVEST REGULARLY

DISCIPLINED 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 RISK

AVERAGE COST PER UNIT < AVERAGE PURCHASE PRICE PER UNIT

1000 1000 1000 1000 100.00 125.00 111.11 90.91 4000 400 400 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 are purely indicative and do not depict the performance of any mutual fund scheme. The actual results may vary from 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 Purchased Market

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SENSEX RETURNS

EQUITY 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 0.00 27.40 6.49 15.66 21 21 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 based

• n 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

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“Best market timing (almost impossible) has yielded less than 2% additional return than systematic investment. Time to go systematic.”

TIME IS IMPORTANT

MARKET 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

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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

R1,00,000

2014 27,499 R2,74,99,000

*As on 31 Dec 2014

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

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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% Compounding what 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

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SYSTEMATIC INVESTMENT 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 your

• goals. For Investment purpose, we often wait to collect a large amount of money and investment it

all at once. Through SIP you can start with smaller amount on a monthly basis and create wealth

• ver the long term.

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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 PERFORMANCE

EQUITY 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 month

Current 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)

INVESTED R   SIP R10,000/- PER MONTH

R 

CURRENT 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

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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 PERFORMANCE

PERFORMANCE 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 month

Current Value (R) 88,60,020 64,99,490

(Total number of Balance fund scheme covered 7, Returns as on 31st December 2014. SIP Amount of R10,000 per month. Total investment R18 Lacs)

INVESTED R   SIP R10,000/- PER MONTH

R  

CURRENT VALUE

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

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

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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 as the 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 GAP

WITH NJ GAP YOU CAN PLAN TO FULFIL YOUR GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIP’S

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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 asset class 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 and investments 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

• ne cheque.

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SIP READY RECKONER

SIP 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

• n scheme selected. It should not be construed to be indicative of scheme performance in any manner.

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EXCHANGE TRADED FUND

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MUTUAL FUNDS

Purchase Systematic Investment Plan (SIP) Inter AMC Switch Inter AMC STP Redemption

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New KYC & bank proof required* No other documents needed

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Transaction can be done from anywhere Transaction report Valuation report Profit & Loss report

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* 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.

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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 are therefore 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.

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