Set your Goal

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Set your Goal through Systematic Investment
Plan
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Systematic Investment Plan inculcates

• Conventionality
• It mitigates loss aversion.
• It ensures that short-term events do not disrupt
  your long-term financial goals
• Discipline
• An enforcement tool for regular investing
• Investment both in bearish and bullish markets.

3
Systematic Investment Plan ensures

• Higher investment value
• Lower cost of acquisition
• Chances of better overall returns in view of
  multiple bets to single bet.
• Long Term Commitment
• Makes you stick to your investment through all
  the ups and downs in the market
• A planner to achieve financial milestones in
  ones life

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How to go

• Prepare a financial plan
• Make saving a part of daily life
• Start saving early

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Financial Plan

• Preparing a financial Plan with focus on
• Your age
• Years to retirement
• Risk tolerance
• Major financial Goals
• time horizon

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Make saving a part of daily life

• Do it step by step
• Rs. 10/- a day

10 x 7 70
70 x 4 280
10 X
280 x 12 3360 a year !!!
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Start Early

• Wholl save more by age 60 ?
• START NOW or START LATER?
• Saved Rs.10,000 Saved Rs.10,000
• Per year from Per year from
• the age 30 to 60 the age 35 to 60

Rs. 12.23 lacs
Rs. 7.89 Lacs
A difference of Rs. 50000/- in amount invested
made a difference of More than Rs. 4 Lac to the
end corpus .( assuming a compounding rate of 8,
payment at the beginning of the period)
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The wonder - Power of compounding

• Example
• Interest earned at a rate of 8 for five years
  on the previous years balance.
• Interest Earned Per Year Prior Year Balance x
  .08
• Today Future years
• 1 2 3 4 5
• Interest earned 8 8.64 9.33 10.07 10.88
• Value 100 108 116.64 125.97 136.04 146.93

Value at the end of 5 years
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Rupee Cost Averaging

• Simple principle of weighted average - gives
  larger weights to lower prices and smaller
  weights to higher prices
• Rupee cost averaging does not always ensure a
  profit nor protect one against loss.

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SIP in Rising Market
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SIP in Falling Market
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SIP in Fluctuating market
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SIP for Equity Investment

• If the market goes up the units you have will
  increase in value and if the market goes down
  your next payment will buy more units.
• SIP is attractive as people prefer multiple bets
  to mitigate the risk involved in lump sum
  investment .
• Works as anti panic device when market falls

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UTI Future Builder
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How does it work ?

• Enables one to invest a pre set amount of money
  in the scheme of choice .
• Transaction on a pre opted schedule
• Each transaction fetches you additional units
  adding value at regular intervals

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Now with Auto Debit Facility Direct Debit
Facility

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More convenience

• Auto Debit Facility ( Direct Facility)with the
  banks with which UTI AMC has tie up( currently
  with UTI Bank)
• Auto Debit ( ECS Debit) Payment through ECS via
  RBI select branches across cities
• Number of cheques reduced to 6 from 12

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Now range increases

• 2 new additions
• UTI Dividend Yield fund
• UTI Equity Tax Savings Plan

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Why UTI Future Builder

• Choice - Unlimited ( more than 45 schemes in
  Debt, Equity Specialty segment)
• Affordable entry amount - as little as Rs.500/-
• Convenience of UTI UFCs reach
• Convenience in transaction viz Auto debit
• Waiver of entry load for equity and balanced
  schemes.

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SIP returns vs lump sum investment Returns

• Assumptions
• Period in Comparison 1.6.2000 to 3.6.2002 for
  UTI Growth Value Fund
• Comparison of Yield - one time investment and
  regular investment across the time horizon

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SIP smoothens volatility of returns

• UTI-Software fund
• SIP returns for an investor from June 2000 to May
  2005 is 19 p.a
• However, if the investor had invested lump-sum
  amount on 1st day of any month from June 2000 to
  May 2003 - the range of returns would have been
  between -8 to 56.

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Some old saying
Take care of penny pound will take care of
themselves
Getting rich is not a function of investing a lot
of moneyit is a result of investing regularly
for a long period of time
Money saved is money lost unless Invested
regularly
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• Start investing now
• thank you
• DisclaimerRisk Factors - All investments in
  Mutual Funds and securities are subject to market
  risk and the NAV of the schemes may go up or down
  depending on the factors forces affecting the
  securities market. Past performance of the
  Sponsor/Mutual Fund/ Scheme(s)/AMC is not
  necessarily indicative of the future results. UTI
  Future Builder is only an investment approach and
  does not in any manner indicate the quality of of
  any of UTI MF Scheme and their future prospects
  and returns.
• Please read offer document and consult your
  financial advisor before investing.