Wealth%20Creation%20for%20you%20and%20your%20Customers%20via%20SIP

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Wealth Creation for you and your Customers via
SIPs
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Where can one invest ??

• Postal Savings
• RBI bonds / GOI bonds ( G secs )?
• PSU/ F I bonds - NHAI/ REC/ NABARD/ IDBI / ICICI
  etc
• Fixed Deposit - Bank / Co
• Shares Stocks , Derivatives
• Commodities
• Real Estate

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Key Investment Considerations

• For the same liquidity - higher the safety, lower
  the returns
• For the same safety - higher the liquidity, lower
  the returns

Mutual Fund investments are subject to market
risks Please read the offer documents carefully
before investing.
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MFs offer all of above
Most open ended funds redeem within 1
working day.
Easy to invest and easy to redeem
Diversified portfolio leads to risk control
Most Funds allowing switching between funds. Fro
m debt to equity etc.
Disclosure of Portfolio NAV declared daily
Mutual Funds are regulated by SEBI.
Tax benefits Capital Gains Tax-free Dividends

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Financial Planning for the future...

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Cost of Living
Items
1987
1997
(
Rs )?
(
Rs. )?
Colgate toothpaste
8.05
18.90
( 100 gm tube )?
( 8.91 )?
Hamam Soap
3.05
7.85
( 9.92 )?
Masala
Dosa
3.50
14.00
( 14.87 )?
Petrol
7.99
25.48
( per
litre )?
( 12.30 )?
L P G Cylinder
56.15
137.85
( 9.40 )?
Zodiac mens shirt
225.00
510.00
( 8.53 )?
Source Readers Digest Nov 1997
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Cost of Living
2017
Items
1997
(
Rs. )?
(
Rs )?
104.00
Colgate toothpaste
18.90
( 100 gm tube )?
52.00
Hamam Soap
7.85
224.00
Masala
Dosa
14.00
259.12
Petrol
25.48
( per
litre )?
830.85
L P G Cylinder
137.85
2620.27
Zodiac mens shirt
510.00
Assuming inflation to grow at the same rate
during 1987-97
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INFLATION ROBS YOUR PURCHASING POWER(Assuming
inflation _at_ 8 p.a.)?
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Why equities are the best bet for long
term. .
Source RBI Report(1997-98)? Analyzed on 15 Year
Data
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EQUITIES ARE THE BEST LONG TERM BET OF STUDIED
PERIOD IN WHICH
Other investment outperformed
14
37
44
Stocks outperformed
86
63
56
1 year
3 year
5 year
Source RBI Report on Currency and Finance
(1997-98)? BSE Sensitive Index of
Equity Prices - BSE
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EQUITY LOSS ?
SENSEX 1991-2006
IT IS UP 90 TIMES IN 26 YEARS
Source Bloomberg
Since BSE Sensex Inception to June 13,2006
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EQUITY WEALTH
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EARNINGS DRIVE RETURNS

• INVESTING IS SIMPLE
• ASK TWO QUESTIONS?
• WILL THESE COMPANIES BE THERE TEN YEARS FROM NOW
• IF YES,WILL PROFITS THEN BE HIGHER THAN TODAY?

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MUTUAL FUND LOSS ?
Prudential ICICI Growth Plan 1999-2006
NAV IS UP 6 TIMES IN 8 YEARS
From Jan 1,1999 to June 9,2006
Past performance is not an indicator of future
performance. It may or may not be sustained in
the future
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MUTUAL FUND LOSS
REMEMBER THE TECH FUNDS
Prudential ICICI Technology Fund
Past performance is not an indicator of future
performance. It may or may not be sustained in
the future
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MUTUAL FUND LOSS
REMEMBER THE TECH FUNDS
Prudential ICICI Technology Fund
Past performance is not an indicator of future
performance. It may or may not be sustained in
the future
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ICICI Prudential Systematic Investment PlanA
recurring deposit account with a mutual fund
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What is an SIP?

• Investing a fixed sum, regularly in a mutual fund
• Allows one to buy units in a particular scheme on
  a given date every month
• Similar to regular savings schemes like a
  recurring deposit

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Benefits of Cost Averaging
Past performance may or may not be sustained in
future Assume a hypothetical investment of
Rs.1000 every month in PruICICI Power since
inception
An SIP reduces the average cost of investment in
fluctuating markets
The above is for illustration purposes only
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Lump sum investment vs. SIP
The direction of the markets is unpredictable.
Performance of lump sum investment depends on the
price at which they are bought
Past performance may or may not be sustained in
future
An SIP reduces these risks by spreading the
investments over a longer period of time, at
various levels of the market
The above is for illustration purposes only
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SIP MAKES SENSE
FUND RETURN 0.74 SIP RETURN 36.29 MAR 7,2000
TO JAN 8,2004
Prudential ICICI Growth Plan
Past performance is not an indicator of future
performance. It may or may not be sustained in
the future
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Sensible Equity Investing for Long Term
Total amount invested as of Nov 06
Rs.3,32,000 Mkt Value of investment as of Nov 01
06 Rs.74,56,554
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SIP vs Lump Sum Investment
Returns on Lump Sum investment
Returns on SIP
Mutual Fund investments are subject to market
risks Please read the offer documents carefully
before investing. Past performance may or may not
be sustained in future
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ICICI Pru Dynamic Plan
Inception Oct 2002 Diversified Equity Scheme
Rs 10,000 Invested _at_ Inception Today Rs 79,490
Rs 1000 invested as SIP since Inception 59
Installments Cost Value Rs 59,000 Todays
Value Rs . 1,80,534 48.90 XIRR Retn
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ICICI Pru Emerging Star Fund
Inception Oct 2004 Diversified MID Cap fund
Rs 10,000 Invested _at_ Inception Today Rs.34,530
Rs 1000 Invested as SIP since Incpetion 36
installments cost Value Rs 36,000 Todays
Value Rs 64,418 retn 44.11 XIRR
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ICICI Pru Infrastructure Fund
Inception Aug 2005 Infrastructure Theme Fund
Rs 10,000 invested _at_ inception Today Rs 27,120
Rs 1000 invested as SIP since Inception 25
installments cost Value Rs, 25,000 Todays
Value Rs 38,093 48.10 XIRR Retn
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Thank youHappy Investing