http://rakshainvestment.com Min Investment of only Rs.500 Benefit from the Power of Compounding Link to your Financial Goals

1. Systematic Investment Plan (SIP)
Simple
Min Investment of only Rs.500
Intelligent
Benefit from the Power of Compounding
Practical
Link to your Financial Goals

2. Did you know ?
If your current monthly expenses are
Rs. 30,000/- p.m, after 20 years you will
require Rs. 80,000/- p.m to maintain the
same lifestyle
Assuming inflation rate of 5%

3. Did you know ?
An education degree for your child
which currently costs Rs. 10 lakh will
cost Rs. 21 lakh after 15 years.
Assuming inflation rate of 5%

4. Individual Investor Needs: Investment Goals
• All individuals need to save for
- Retirement
- Child’s education / marriage
- Medical emergency
- Other family obligations
Every individual has one or more of the above goals

5. Individual Investor: Life Stages
Earnings
Consumption
Savings
22
Young Independent
27
Young Married
40
Middle Age
All individuals have a finite period to save for their investment goals
60
Retirement

6. Value of Money over time
Impact of inflation on monthly
expenses of Rs. 30,000 today
Value of Rs. 100,000 over time
100,000
79,599
78,353
62,368
48,102
38,288
37,689
30,000
Today
5 years
15 years
20 years
Today
At inflation of 5%
Investors need to beat inflation
5 years
15 years
20 years

7. Performance of Various Asset Classes
Cumulative annualised returns 1980-2004
15.6%
10.3%
6.7%
8.9%
5.7%
3.55%
-1.1%
Inflation
Gold
Growth
Bank FDs
Real Growth
Equities outperform other asset classes over the long term
BSE Sensex

8. Individual investors are scared of …..
The Downside
Risk
in Equities
The Risk
of Market Volatility
The Risk
of Market Timing

9. What else makes a material impact on
investments in equity ?

10. Investing in the BSE Sensex - 25 years
Returns are from 1981- Dec 2005
16.90%
15.07%
Fixed investment at
highest sensex value
every year
Fixed investment at
lowest sensex value
every year
Market timing does not matter over the long term
16.02%
Fixed investment on
1st day of every month

11. The Power of Compounding
Debt
Instrument
Monthly
investment
Assumed
BSE Sensex
Scenario A
BSE Sensex
Scenario B
Rs. 5,000
Rs. 5,000
Rs. 5,000
10%
annualised return
Final corpus
From Jan 1, 1984 to Dec 31, 2004 - a 21 year period
Rs. 43 lakh
15%
Rs. 89 lakh
20%
Rs. 1.9 crore

12. Summary
Investors needs to save
regularly and invest those
savings in higher return
assets to create wealth
Long Term Systematic
Monthly Investment in
equity schemes is ideal
for this

13. How Do You Achieve Your Financial Goals
• Retirement
• Child’s education - international
• Family commitments - medical emergency, etc

14. Retirement Planning
Monthly Household Expenses
83,579
Retirement corpus required
to meet post retirement expenses.
(if invested at 7%)
1.4 crore
30,000
Monthly investment needed
to meet post retirement expenses
Inflation 5%
at 12%
21 Yrs
12,583
at 15%
Today
At the time
of retirement
8,083
at 18%
5,090

15. Child’s Education
Educational Degree
34,20,000
Monthly investment needed
to achieve this goal
at 12%
12,456
20,00,000
at 15%
at 18%
Inflation 5%
11 Yrs
Present
When your child
actually goes
for this degree
10,166
8,237

16. Child’s Marriage
43,70,000
Monthly investment needed
to achieve this goal
at 12%
at 15%
20,00,000
Inflation 5%
16 Yrs
Present
When marriage
actually takes place
7,509
5,466
at 18%
3,925

17. So What Are The Benefits Of Investing Through
A Systematic Investment Plan !

18. Benefit : 1
• The Benefit of Long Term Equity Investment
- Equities give superior returns among all asset classes over
the long term
- Mutual Fund has a track record of consistent good
performance relative to index.

19. Benefit : 2
• The Benefits of Systematic Monthly Investment
- Takes out the risk of market timing
- Adds the benefits of the power of compounding and
rupee cost averaging

20. Benefit : 3
• Flexibility
- You can choose from a wide array of schemes
- You can decide to keep invested amounts in an earlier
scheme & invest future SIP instalments into a new scheme

21. Benefit : 4
• Added Convenience
- Auto debit facility across major cities in India
- Regular account statements
- Redemption request directly credited into your bank account

22. Make your investment goals a reality
Start a S.I.P. today !

23. A Rupee Saved Is A Rupee Earned
A Long Journey Begins With A Small Step
For More Information
Visit http://www.rakshainvestment.com