An investor education initiative by TURN UNCERTAINTIES INTO AN OPPORTUNITY BY INVESTING SYSTEMATICALLY
What t is an SIP? A Systematic Investment Plan or better known as SIP is based on the simple idea of investing a fixed amount at fixed intervals, for a long time to achieve long-term benefits. It helps you average your cost of investment over time. 2
How does an SIP P benefit fit you? BENEFITS: Reduces the risk Reduces your Gives better associated with average cost returns in the market timing of purchasing longer run Inculcates a Makes your Helps with feeling of money grow with long-term discipline to the power of approach of save and invest compounding investment regularly 3
Rupee pee Cost Av Averag agin ing By Investing fixed sums at regular intervals , you pick up more units when the prices are low and less units when the prices are high. This brings down the average cost of your units hence, there is no need to time the markets as you invest at predetermined intervals. Parti Particula lars Month nth 1 Month nth 2 Month nth 3 Month nth 4 Month nth 5 Month nth 6 SIP Amount 10000 10000 10000 10000 10000 10000 NAV 100 90 110 105 95 115 Units 100 111.1111 90.90909 95.2381 105.2632 86.95652 T otal Investment T otal Units Average NAV 60000 60000 589.478 .478 101.785 .785 4 This is for illustration purpose only. Actual results may vary.
SIP SIP Goals
How can an SIP help lp with your child’s future? ure? Parenting comes with a lot of responsibilities and expenses. Starting an SIP keeping these expenses in mind can help one plan their child’s future better. Wealth accumulated Monthly SIP approximately of Rs. 10,000 10,000 Rs. 23.2 Lacs YEARS 10 10 6 Calculation based on 12% p.a. growth rate compounded monthly. This is for illustration purpose only. Actual results may vary.
How can an SIP help lp plan vacation? n? One can invest through SIP for vacation fund, allowing one to visit desired destinations and manage expenses worry-free. Wealth accumulated approximately Rs. 8.2 Lacs Monthly SIP Rs. 10,000 10,000 YEARS 5 7 Calculation based on 12% p.a. growth rate compounded monthly. This is for illustration purpose only. Actual results may vary.
How can an SIP help lp one e after r retire iremen ment? t? One may stop working, but the expenses never stop. Here is how an SIP can help post-retirement: Accumulate a considerable amount of money for retirement Corpus value at 60 years Rs. 6.5 crore Monthly SIP Rs. 10,000 10,000 AGE OF OF 60 60 Investment started at the age of 25 years 8 Calculation based on 12% p.a. growth rate compounded monthly. This is for illustration purpose only. Actual results may vary.
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Is 2019 19 a y year of market ket volatili ility? Y es, it it is! A few factors contributing to the market volatility in 2019: Nation onal A A Pre-Poll Trad ade War ar Crude Oil Elections ns Union Budget Issues Prices es 10
Underst rstandin nding g market ket volatili ility ty Similarly, if the prices of a stock VOLATILITY If the price of a stock fluctuates fluctuate slowly in a longer time is referred to fluctuations of rapidly in a short span, it is said span, it is said to experience stock prices in the market to experience HIGH GH VOLATILITY LOW VOLATILITY 11
Misco concepti nceptions ons about volatili ility ty We always connote volatility as a negative piece of information. Here are few of the common MISC SCONCEP NCEPTI TIONS NS related to volatility: • Cashing shing in is the e right ght thing ng to do do • Checking ecking the prod roduc ucti tivi vity ty daily ily • Shar ares es lose se value alue when n they ey fall ll in price rice • Sto topping ing SIP IPs s when n the mark market falls lls 12
Why is 2019 19 the Year r of SIP? An SIP is a a simple When n the mark market et The investor r can With an SIP , an investment strategy gy drops, s, stock price ces s benefit by i investing ng in investor r can turn n which ich aims to give become compara parativ ively ly more for a lower price ce the year of mark market et better returns ns in a lower, providi iding ng volatil ilit ity into a year volatil ile mark market et more units. of opport of rtun uniti ties 13
#Year ear of SIP SIP The key is to be disciplined, focus on financial goals, and invest in mutual funds through SIPs for a better future. Y ear of of volatility Y ear of possibilities and opportunities 14
T o know more, Visit Download contact your ww www .icicipruamc.com IPRUTOUCH APP Financial Advisor Mutual Fund investments are subject to market risks, read all scheme related documents carefully 15
Caution n to the Investors tors Jan 30, 30, 2017 PR PR No.: 8/2017 1. Some unlisted companies are luring retail investors by issuing securities including non-convertible and convertible debentures/ non-convertible and convertible preference shares/ equity shares in the garb of private placement, without complying with the provisions of Companies Act, 1956 read with the Companies Act, 2013, SEBI (Issue and Listing of Debt Securities), Regulations, 2008, SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares), Regulations, 2013 and SEBI (Issue of capital and Disclosure Requirements) Regulations, 2009. 2. Any offer of securities made to 50 or more persons has to be construed as a "Public Offer" under the provisions of Companies Act, 1956. 3. Under Companies Act, 2013, "Private Placement" shall be made only to such persons whose names are recorded by the company prior to the invitation to subscribe. Further, in case of private placements, the company shall not release any public advertisements or utilise any media, marketing or distribution channels or agents to inform the public at large about such an offer. Further, such offer or invitation shall not be made to more than 200 persons in the aggregate in a financial year. 4. As per the provisions of Companies Act, 2013 and SEBI Regulations, no issuer shall make public issue of these securities, unless it has made application to the recognized Stock Exchange(s) for listing of such securities. Further, the issuer, among the other things, is required to file the offer document with RoC/Stock Exchange/SEBI etc. The issuer has to make disclosures about the issuer company, the promoters of the company, the risk factors etc. Kindly, refe fer r the latest test upd pdate ate on n caution tion to Inves vesto tors s on n the e below low link http://www.sebi.gov.in/media/press-releases/jan-2017/caution-to-the-investors_34109.html http://www.sebi.gov.in/sebiweb/home/cause-list.jsp 16
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