CR SIP Booklet

8/8/2019 CR SIP Booklet

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Canara RobecoEquity Diversi ed

S M A R TIn v e s t m e n t P l a n

A smarter way to invest in the India growth story

August 2010


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The Income Punctures rising expenses & falling value of money

In ation The Invisible Killer!!!

1 of 221Rate of In ation assumed at 6%. Analysis: CRAMC

0

Present

Present

5 Years

5 Years

10 Years

10 Years

15 Years

15 Years

20 Years

20 Years

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

25,000

33,456

44,771

59,914

R i s i n g

I n a t

i o n l e a d

s t o R

i s i n g C o s t

s 80,178

Monthly Expenses

0

20000

40000

60000

80000

100000

120000

Present 5 Years 10 Years 15 Years 20 Years

29,011

39,529

53,862

73,390

100,000 T h e T i m e V a l u e o f M o n e y a t P l a y . . .

Savings

Present 5 Years 10 Years 15 Years 20 Years


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The Income Punctures the shift from Luxury to NEED

Lifestyle In ation...Am I ready for the needs of the future???

The above table is for illustration purposes only. 2 of 221

Items 2000 2010 2020

Internet Connectivity Personal Desktop

Cable / Satellite TV

Owning a Car

Mobile

Laptop

Global Positioning System (GPS)

International Vacation

Home Security Solutions


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The Income Punctures ballooning costs (educational expenses)

Some Expenses are de ating my Income!!!

Source: www.iimahd.ernet.in, www.india-server.com, Analysis :CRAMC 3 of 221

IIM Ahmedabad Fees

6,000 for Two Years

12,50,000 for Two Years

CAGR of 21.85%

in the last 27 Years

1983 2010


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How can I beat In ation?

My Future GoalsWill they be met?

How do I make ends meet in these volatile environment?

SAVINGS is the only answer to these questions


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Saving

Income

Expense

Expense

Income

Saving

Income Savings Expenses the chain change(rearranging priorities)

The Changed Equation : Income Savings = Expenses

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Income Savings Expenses


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Need to revisit the Asset Class selection

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Savings Bank Account

Fixed Deposits

PPF

Life Insurance

Postal & Other Small Saving Schemes

Gold

Equities (Direct Equity & Mutual Funds)

The MostCommon Avenue

for Savings

The More CommonAvenue for Savings

Common Avenuefor Savings

Where do all the savings go?


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Asset Class Returns(post tax)

Taxing Times Ahead!Equity helps you to have Relaxing Times Ahead!!!

7 of 22 Data as on 30th June, 10Long Term Taxation Methodology: Equity Nil, Debt (Bank FD) 30.90% & Gold 20.60%.Source: Bloomberg, Analysis: CRAMC.

0.00%

7 Years

Gold Equity Debt Ination

10 Years 15 Years 20 Years 25 Years

3.00%

6.00%

9.00%

12.00%

15.00%

18.00%

21.00%


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The Power of Compounding

Analysis: CRAMC. 8 of 221

The Power of Compounding bene ts as the return on investment goes up for the same invested amount

Below is the value of Rs. 60,000 invested at diff erent rate of growth at the end of 30 years

-10 6% 8% 10%

Value of Investment (Rs. In lacs)

Value of Investment (Rs. In lacs)

3.45 6.0410.47

15% 20%

39.73

142.43

10

30

50

70

90

100

130

150


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The Expense of Timing the Market

Timing the Market is a High Risk Strategy...Timeless investing is the Mantra

Source: Bloomberg, Analysis: CRAMC. Data from June 2000 to June 2010 9 of 221

Annualised Return of BSE Sensex from 2000-2010

-10

Investing at all days Missed 10 Best Days Missed 20 Best Days

Missed 30 Best Days Missed 40 Best Days

14.06%

5.75%

0.29%

-4.24%

-7.99%

-5%

0%

5%

10%

15%

20%

Its not about timing the market, its TIME in the market!!


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Be the First to take the First Step(Start Early)

Higher Investment Amount cannot compensate for the Growth Potential of Starting Early!!!

10 of 22Growth Rate assumed @ 15%. Analysis: CRAMC.

Mr. Ram

Invests at the Age 25 Yrs.Investment Period 10 Yrs.

Stops Investing at the Age 35 Yrs.

Investment Amt. (p.m.) 5,000

Mr. Shyam

Invests at the Age 40 Yrs.Investment Period 20 Yrs.

Stops Investing at the Age 60 Yrs.

Investment Amt. (p.m.) 15,000

Investor Investment Amount Value of Investment at Age 60 Yrs.

Mr. Ram 660,000 48,093,160

Mr. Shyam 3,780,000 21,385,822


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3 Simple Steps for Wealth Creation

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SSIIPP

SMART Investing Early is the Key The Longer you save, the more you make

INVESTMENT Investing in the Right Asset Class Risk Return Balance to optimize growth

PLAN Investing with a Plan Consistent & Continuous Investment


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Indian economy ready to take o ff

Slow start: Took 16 years to reach USD 500 billion from 1988,Acceleration: Took 5 years to reach USD 1st trillion from there,

Take Off : May be 5-6 years for the next trillion4 trillion dollar economy by 2020

Source: Motilal Oswal Research 12 of 221

GDP at current Mkt Price (US$ tln)

0.0

1 9 8 9

- 9 0

1 9 9 0

- 9 1

1 9 9 1

- 9 2

1 9 9 2

- 9 3

1 9 9 3

- 9 4

1 9 9 4

- 9 5

1 9 9 5

- 9 6

1 9 9 6

- 9 7

1 9 9 7

- 9 8

1 9 9 8

- 9 9

1 9 9 9

- 0 0

2 0 0 0

- 0 1

2 0 0 1

- 0 2

2 0 0 2

- 0 3

2 0 0 3

- 0 4

2 0 0 4

- 0 5

2 0 0 5

- 0 6

2 0 0 6

- 0 7

2 0 0 7

- 0 8

2 0 0 8

- 0 9

2 0 0 9

- 1 0

2 0 1 0

- 1 1 E

2 0 1 1

- 1 2 E

2 0 1 2

- 1 3 E

2 0 1 3

- 1 4 E

2 0 1 4

- 1 5 E

2 0 1 5

- 1 6 E

2 0 1 6

- 1 7 E

2 0 1 7

- 1 8 E

2 0 1 8

- 1 9 E

2 0 1 9

- 2 0 E

0.4

0.81.2

1.6

2.0

2.4

2.8

3.23.6

4.0

CAG R - 3 .8 9 %

C A G R - 1 4 .

9 7 %

R a c e t o

t h e 2 n

d

T r i l l i o n

A l l s

e t t o

4 t h

T r i l l

i o n


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GDP Growth Drivers India in a sweet spot

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Consumption + Savings + Infrastructure = GDP Boost

Infra-structure

Consumption

Savings

Backbone tothe Economy

Higher Income tolead to higher savings

Lower DependencyRatio to boostConsumption


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14 of 221

Expertise comesin knowing

what to pick.

Expertise comesin knowing

what to pick.

Canara Robeco Equity Diversi ed (An Open-Ended Equity Scheme)


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Presenting Canara Robeco Equity Diversi ed

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Canara Robeco Equity Diversied follows predominantly bottom-up approach of focusing on well-managedcompanies that are likely to deliver superior capital appreciation over the medium-term

The fund aims to provide an investment opportunity in thebest in class Indian companies with sustainablebusiness models to gain from the India growth story

The fund should form the CORE part of an investors portfolio as it has a moderate risk pro le

Growth Value Blend

Large Cap Mid Cap Small Cap

Diversi ed Thematic Sector


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Fund Characteristics

As on 30th July, 201016 of 221

Investment Objective: To generate capital

appreciation by investing in equity and equityrelated securities

Asset Allocation

Instruments Minimum (%) Maximum (%)

Equity and equity

related instruments 85 100

Money Market

Instruments 0 15

Inception Date 16-Sep-03

Fund Manager Anand ShahEntry Load Nil

Exit Load (Lump 1% - if redeemed/switched out

sum / SIP / STP) within 1 year from the date of

allotment.AUM (INR crs) 349.88

Minimum SIP Inv. Rs. 1,000 (Monthly SIP) &

Amt (Rs.) Rs. 2,000 (Quarterly SIP) & in

multiples of Re.1 thereafter

Benchmark Index BSE 200

Investment Options Growth, Dividend Payout,

Dividend Reinvestment, Bonus


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Portfolio Characteristics

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Top 3 sectors account for 39.80% and Top 5

sectors account for 53.07% of net assets

Well diversied portfolio with 43 stocks

accounting for 87.49% of net assets

Top 10 holdings of the portfolio account for

37.87% of net assets

Name of the Company Industry Classication % of Net Assets

Bharti Airtel Ltd Telecom - Services 5.37%HDFC Bank Ltd Banks 5.02%Reliance Industries Ltd Petroleum Products 4.31%Tata Consultancy Services Ltd Software 4.14%Bharat Heavy Electricals Ltd Industrial Capital Goods 3.73%GAIL (India) Ltd Gas 3.46%State Bank Of India Banks 3.35%Punjab National Bank Banks 2.99%Oil India Ltd Oil 2.76%Pantaloon Retail (India) Ltd Retailing 2.74%

Asset Allocation (%)

Equity & Equityrelated instruments

Money MarketInstruments

12.51

87.49

Sector Allocation (%)

12.51% 20.76%

10.68%

8.36%

7.53%

5.74%

34.42%

Banks | 20.76%

Pharmaceuticls | 10.68%

Software | 8.36%

Petroleum Products | 7.53%

Media & Entertainment | 5.74%

Other Equity | 34.42%

MMI & Others | 12.51%


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Consistent portfolio indicates lower churn ratio

Canara Robeco Equity Diversi ed Consistency in Portfolio

18 of 22 Analysis: CRAMC.

Top 5 Sectors Allocation (Q-o-Q)

Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10Sectors

Banks

Pharmaceuticals

Petroleum Products

SoftwareOil

Power

Media &

EntertainmentTelecom - Services


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Why Invest in Canara Robeco Equity Diversied

19 of 22# Please refer to the disclaimers at the end of this presentation.

Opportunity to participate in theIndia Growth Story

Focused large cap holdings with fewhigh conviction mid capideas

Blend of Growth & Value Style of Investingto provide a well diversied portfolio

Should form a part of theCORE portfoliofor an investors equity portfolio

A4 Star rated fund by Value Research Online# , Platinum rated fund by ET Investors

Guide# & 4 Star rated fund by Morningstar#

Outperformance vis--vis its Benchmarkacross various time periods


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What is Smart Investment Plan?

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SIP is a strategy whereby an investor commits to invest axed amount at specied intervals

Follows the similar principle of Recurring Deposit with a Bank

Focus on consistent & continuous investments Fixed Money for Fixed Period of time to

bene t from market volatility

Imparts Discipline in investing The most needed quality for a long term investor

Simple & Quick Hassle Free investments with one time instruction

Law of Averaging at work Rupee Cost Averaging at its best

Small Ticket Sizes do not impact the wallet too!


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Documents

CR SIP Booklet