RETIREMENT SAVINGS FUND (An open-ended retjrement solutjon oriented - - PowerPoint PPT Presentation

(An open-ended retjrement solutjon oriented scheme having a lock-in of 5 years or tjll retjrement age (whichever is earlier))

RETIREMENT SAVINGS FUND

Presenting

NFO Period: 29th Nov - 13th Dec 2019

What does retirement mean to you?

Happy, Healthy & Wealthy

19, F Having enough money to do the things I want – travel, start a new career, etc. 58, F To stay healthy and do what I feel like without worrying about money. 35, F To be able to shop without checking the price tag. 25, M To be financially free and healthy to enjoy the wealth. 56, M To do what I want (travel) instead of what I am supposed to do. 41, M To be the master of my own tjme.

Source: Axis MF Internal Research 1

What are the typical retirement fears?

48% people worldwide are scared that their corpus will not suffice

Source: Transamerica Centre – Retjrement Studies. Data as on Dec 2018.

Declining health Difficulty to meet basic financial needs Feeling isolated and dependent Being laid off abruptly Financial compromises

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Life expectancy is increasing

While people want to retire earlier

Source: UN World Populatjon Prospects 2019, World Bank. Data as on 31st Mar 2019.

The 80+ populatjon has nearly tripled globally over the past 30 years and stands at 143 million in 2019. It is expected to further triple to 426 million by 2050 and double to 881 million by 2100. 40 45 50 55 60 65 70 75 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Life expectancy at birth (years)

India World

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Typical challenges are here to stay

Manage one’s income in working years for comfortable non-working years 18-29 yrs Young Age 30-59 yrs Middle Age 60+ yrs Old Age

Post Retjrement Sustenance Emergency Medical Expense Wedding Children’s Wedding Children’s Educatjon Educatjon Savings

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You will retire, but inflation won’t!

Savings is not investjng

Assuming inflatjon at 5%, `1 lakh saved today will be worth only `61,391 afuer 10 years. What you can buy today for `1 lakh will cost `1.63 lakhs 10 years later.

Savings does not grow money. Investjng does.

Above figures and assumptjons are strictly for illustratjon purpose.

Cost of living is rising rapidly

Source: Axis MF Internal Research, data.gov.in. Data as on 31st Dec 2018.

Are you ready for it?

Movie ticket prices have increased 5-10x in last 20 years Petrol/Diesel prices have increased 2-3x in 15 years

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Milk prices have doubled over the last 5 years Rice prices have tripled in last 15 years

Maintaining health has become an expensive affair

Source: ibef.org. Data as on 30th Sep 2019 2.4 2.8 2.9 2.9 3.6 4.1 4.8 5.9 3.5 FY 11 Fy 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19*

Health Insurance Premium Collection ($ bn)

63 million people fall into poverty each year due to lack of financial protectjon for medical needs 50% of beneficiaries travel more than 100 kms to access quality care

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Deciding retirement corpus is critical

Inflation will impact monthly expenses

The earlier you plan to retjre, the bigger the size of corpus required Risk appetjte reduces as you near the retjrement age Staying financially disciplined post retjrement gives more predictability

0.00 1.00 2.00 3.00 4.00 5.00 6.00 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 Retirement corpus (Rs crs) Years

If you were to retire today

Corpus @ `1crs Corpus @ `1.5 crs Corpus @ `2 crs

Above figures and assumptjons are strictly for illustratjon purpose and does not indicate any future returns. Assumptjons: If you were to retjre today with a set corpus, Monthly expense: `50,000 (increasing at an inflatjon rate of 5%) Retjrement Corpus growing at 7% interest rate. The effect of taxation is not considered. 8 `1cr corpus will serve for 20 years `1.5 crs corpus will serve for 34 years `2 crs corpus will serve for 54 years

So, how prepared are you for retirement?

Key things to consider:

Find the right investment product(s) Map your investment goals Stay disciplined Don’t atuempt to tjme the market Adjust your risk appetjte with age

PRE-RETIREMENT POST-RETIREMENT

Be aware of your risk appetjte Decide a reasonable withdrawal rate Stay disciplined Adjust the withdrawal rate based on investment return/real rate

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YOU’LL LIVE LONGER THAN YOU THINK. WILL YOUR MONEY LAST AS LONG?

In India, modern medicine has increased life expectancy by 47% over the last 50 years*. Have you planned your future accordingly?

(An open-ended retjrement solutjon oriented scheme having a lock-in of 5 years or tjll retjrement age (whichever is earlier))

RETIREMENT SAVINGS FUND

Presenting

*Source: United Natjons Populatjon Fund Report dated April 2019 10

Product Construct

The fund aims to help investors with their retirement planning Aggressive Plan Dynamic Plan Conservative Plan Ideal for young investors in the early stages of their careers Ideal for 35-45 year old investors with financial responsibilitjes Ideal for investors about to enter their retjrement years

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Product Construct

Default retjrement age: 58 years. Please refer to SID for detailed investment strategy and asset allocatjon * Other asset classes include Debt & Money Market Instruments, Gold ETF and REITs & InvITs.

Aggressive Plan Dynamic Plan Conservative Plan

Equity exposure 65-80%. Rest spread across

• ther asset classes*

Equity exposure 65-100, will be through a combinatjon of Hedged & Unhedged equity. Rest spread across

• ther asset classes*

40-80% debt exposure in high quality debt instruments, 20-40% in Equity exposure.

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Equity Investment Approach

Focus on fast growing sectors with botuom-up stock picking approach Risk return tradeoff is likely to be favourable over the medium term Good ideas can do betuer irrespectjve of their sector/theme/size

*Investment focus is based on current market outlook and is subject to fund manager

• discretjon. Investors are advised to refer SID for investment strategy of the scheme

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Debt Investment Approach

*Investment focus is based on current market outlook and is subject to fund manager

• discretjon. Investors are advised to refer SID for investment strategy of the scheme

Actjve duratjon management The portgolio duratjon and credit exposures will be decided based on thorough research Flexibility to invest in the entjre range of debt instruments across credit/duratjon spectrum

Apply disciplined approach to investing

Past performance may or may not be sustained in future. Source of data: Bloomberg. SIP calculatjon are done based on monthly SIP (last day of the month). The returns are in XIRR. XIRR calculates the internal rate of return for series of cash flows. Above chart/figures/data is for illustratjon purpose and does not indicate performance of any scheme. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index; Source: Bloomberg. Above chart/data is for illustratjon purpose and does not indicate performance of any scheme. In the above chart, missed ‘n’ best days refers to not staying invested to capture ‘n’ best daily gains in the period from Jan 1980 to Mar 2018. Eg: Missed 10 days means Assuming daily return for the best 10 days (as per daily gains) as 0%. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index.

Trying to pick the top or bottom of markets is notoriously difficult

12.8% 14.0% 13.5%

Return (XIRR)

Invested `1,000 on market high of every year Invested `1,000 on market low of every year Invested `1,000 on any random date of every year (In this case, 1st Dec)

Regular investing helps ensure you don’t miss out on the best gains 15.9% 12.9% 9.0% 4.6% 0.9%

Fully invested Missed 10 best days Missed 30 best days Missed 60 best days Missed 90 best days

Illustration (Last 39 years in Sensex)

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A small delay can cost more

Start Early And benefit from the Power of Compounding

Past performance may or may not be sustained in future. Source of data: Bloomberg. SIP calculatjon are done based on monthly SIP (last day of the month). The returns are in XIRR. XIRR calculates the internal rate of return for series of cash flows Above chart/figures/data is for illustratjon purpose and does not indicate performance of any scheme. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index. `1.7 crs `1.1 crs 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00 200.00 Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25

SIP In S&P BSE Sensex for last 20 & 25 years

Investor A Investor B

Illustratjon: Monthly SIP of `10,000 Investor A: Investjng since 25 years Investor B: Investjng since 20 years

Cost of delay: `66lacs

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SECURE YOUR INVESTMENT GOALS, NO MATTER WHAT.

The Axis Retjrement Savings Fund comes with the exclusive provision

• f iPlus SIP.

(An open-ended retjrement solutjon oriented scheme having a lock-in of 5 years or tjll retjrement age (whichever is earlier))

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Complimentary insurance cover for long term SIPs*

In an unfortunate event of the demise

• f the investor, the

insurance cover will take care of unpaid instalments of SIP committed by the investor iPlus SIP is a special feature that provides investors with complimentary insurance cover

• n long term SIPs

We ensure that the investor’s planned investments are taken care of

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`8.4L

INVESTMENT GOAL OF

`12L

`10,000/month x 10 yrs Mr Kumar's demise post Year 3 (120-36 months) x `10,000

A SIMPLE EXPLANATION

Mr Kumar starts a ʻiPlus SIPʼ for `10,000/- per month for 10 years. The life insurance aims to cover the residual component of his goal and gets actjvated afuer 12 successful instalments. Afuer 12 SIP instalments, Mr. Kumar becomes eligible for insurance benefit equal to remaining SIP instalments. For every SIP instalment paid, the insurance coverage falls by the monthly SIP amount. In the case of Mr Kumar's unfortunate demise afuer 3 years, Insurance company will pay `8,40,000 to the registered nominee.

`10,000 x 108 months

Insurance

`3.6L

Investment

`10.8L

` GOAL ACHIEVED

G O A L A C H I E V E D

Insurance

Some of the key Terms & Conditjons are: 1) Only the first unit holder will be eligible for the insurance cover. 2) Nominee will not have any claim if the death of investor occurs before 12 payments of SIP are completed 3) The insurance cover does not cover market related losses incurred on investment amount. *Please refer to SID of the scheme for detailed terms and conditjons on iPlus SIP facility. The AMC is offering insurance cover to the investors under iPlus SIP as an additjonal Opt in facility in the interest of investor and is not actjng as an insurance agent for marketjng/sales of insurance policies. AMC is not intending/nor solicitjng sale of any insurance services/products. The discretjon to obtain the Facility rests with the investor at the tjme of SIP applicatjon. AMC/Trustee reserves the right to change/modify the terms & conditjons.

Let Axis lend you a helping hand with insurance cover

• Resident individual investors aged

above 18 years and not more than 51 years at the tjme of submission of SIP applicatjon.

• Minimum tenure of SIP is 3 years at a

monthly frequency.

• Minimum SIP amount of `1,000 per

instalment

• Insurance will commence upon

investment of 12 successful SIP

• instalments. The insurance cover will

be limited to the extent of the residual instalments of the SIP upto the age

• f 55 years subject to a maximum
• f `50 lakhs.
• Insurance cover lapses immediately

upon reaching 55 years of age or if the investor misses 3 contjnuous SIP payments, whichever is earlier.

• Partjal or full redemptjon/switch-out
• f units purchased under Axis iPlus

SIP before completjon of the mandated SIP tenure/instalments.

Eligibility Commencement of Insurance Cover Termination of Cover

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Key features of the fund

Points Description

Scheme Positjon Fund Structure Lock In Minimum Applicatjon Amount Exit Load iPlus SIP Solutjon Oriented Product aimed at investjng for one’s retjrement Open-ended fund with 3 Plans: Aggressive, Dynamic & Conservatjve 5 years from the date of allotment of units of the investment plan(s) under the scheme or tjll retjrement age of unit holder (i.e. completjon of 58 years), whichever is earlier First Applicatjon: `5,000 and in multjples of `1 thereafuer. Additjonal Investment: `1,000 and in multjples of `1 thereafuer. Optjonally available Nil

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Product Label & Riskometer Statutory Details and Risk Factors

Axis Retirement Savings Fund - Aggressive Plan

This product is suitable for investors who are seeking*:

• Capital appreciatjon over long term
• Investments primarily in equity and equity related instruments

Axis Retirement Savings Fund - Dynamic Plan

This product is suitable for investors who are seeking*:

• Capital appreciatjon and income generatjon over long term
• Investment in equity and equity related instruments as well as debt and money

market instruments while managing risk through actjve asset allocatjon.

Axis Retirement Savings Fund - Conservative Plan

This product is suitable for investors who are seeking*:

• Capital appreciatjon and income generatjon over long term
• Investments in debt and money market instruments as well as equity

and equity related instruments

Investors understand that their principal will be at moderately high risk

LOW HIGH

Moderate M

• d

e r a t e l y H i g h M

• d

e r a t e l y L

• w

High Low

Riskometer

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 22

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to `1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortgall resultjng from the operatjon of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

THANK YOU!