(An open-ended retirement solution or iented schemehaving a lock- in of 5 years or til l retirement age(whichever is ear l ier) )
RETIREMENT SAVINGS FUND
Presenting
NFO Period: 29 th Nov - 13 th Dec 2019
What does retirement mean to you?Happy, Healthy & Wealthy
19, F
Having enough money to do the things I want – travel, start a new career, etc.
58, F
To stay healthy and do what I feel like without worrying about money.
35, F
To be able to shop without checking the price tag.
25, M
To be financially free and healthy to enjoy the wealth.
56, M
To do what I want (travel) instead of what I am supposed to do.
41, M
To be the master ofmy own time.
Source: Axis MF Internal Research 1
What are the typical retirement fears?48% people worldwide are scared that their corpus will not suffice
Source: Transamerica Centre – Retirement Studies. Data as on Dec 2018.
Declininghealth
Difficulty to meetbasic financial needs
Feeling isolated anddependent
Being laid offabruptly
Financial compromises
2
Life expectancy is increasingWhile people want to retire earlier
Source: UN World Population Prospects 2019, World Bank. Data as on 31st Mar 2019.
The 80+ population has nearly tripled globally over the past 30 years and stands at 143 million in 2019.
It is expected to further triple to 426 million by 2050 and double to 881 million by 2100.
40
45
50
55
60
65
70
75
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Life expectancy at birth (years)
India World
3
Typical challenges are here to stayManage one’s income in working years for comfortable non-working years
18-29 yrsYoung Age
30-59 yrsMiddle Age
60+ yrsOld Age
Post RetirementSustenance
Emergency MedicalExpense
Wedding
Children’sWedding
Children’sEducation
Education
Savings
4
5
You will retire, but inflation won’t!
Savings is not investing
Assuming inflation at 5%,
`1 lakh saved today will be worth only `61,391 after 10 years.
What you can buy today for `1 lakh will cost `1.63 lakhs 10 years later.
Savings does not grow money.Investing does.
Above figures and assumptions are strictly for illustration purpose.
Cost of living is rising rapidly
Source: Axis MF Internal Research, data.gov.in. Data as on 31st Dec 2018.
Are you ready for it?
Movie ticket prices have
increased 5-10xin last 20 years
Petrol/Diesel prices have
increased 2-3xin 15 years
6
Milkprices have
doubled over the last 5 years
Riceprices have tripled
in last 15 years
Maintaining health has become an expensive affair
Source: ibef.org. Data as on 30th Sep 2019
2.42.8 2.9 2.9
3.6
4.1
4.8
5.9
3.5
FY 11 Fy 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19*
Health InsurancePremium Collection ($ bn)
63 million people fall into poverty each year due to lack of financial protection for medical needs
50% of beneficiaries travel more than 100 kms to access quality care
7
Deciding retirement corpus is criticalInflation will impact monthly expenses
The earlier you plan to retire, the bigger the size of corpus required
Risk appetite reduces as you near the retirement age
Staying financially disciplined post retirement gives more predictability
0.00
1.00
2.00
3.00
4.00
5.00
6.00
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54
Retir
emen
t cor
pus
(Rs
crs)
Years
If you were to retire today
Corpus @ `1crs Corpus @ `1.5 crs Corpus @ `2 crs
Above figures and assumptions are strictly for illustration purpose and does not indicate any future returns. Assumptions: If you were to retire today with a set corpus, Monthly expense: `50,000 (increasing at an inflation rate of 5%) Retirement Corpus growing at 7% interest rate.The effect of taxation is not considered. 8
`1cr corpus willserve for 20 years
`1.5 crs corpus will serve for 34 years
`2 crs corpus will serve for 54 years
So, how prepared are you for retirement?Key things to consider:
Find the right investment product(s)
Map your investment goals
Stay disciplined
Don’t attempt to time the market
Adjust your risk appetite with age
PRE-RETIREMENT POST-RETIREMENT
Be aware of your risk appetite
Decide a reasonable withdrawal rate
Stay disciplined
Adjust the withdrawal rate based on investment return/real rate
9
YOU’LL LIVE LONGER THAN YOU THINK.WILL YOUR MONEY LAST AS LONG?
In India, modern medicine has increased life expectancy by 47% over the last 50 years*. Have you planned your future accordingly? (An open-ended retirement solution or iented scheme having
a lock- in of 5 years or til l retirement age (whichever is ear l ier) )
RETIREMENT SAVINGS FUND
Presenting
*Source: United Nations Population Fund Report dated April 2019 10
Product ConstructThe fund aims to help investors with their retirement planning
Aggressive Plan
Dynamic Plan
Conservative Plan
Ideal for young investorsin the early stages of their careers
Ideal for 35-45 year old investorswith financial responsibilities
Ideal for investors about toenter their retirement years
11
Product Construct
Default retirement age: 58 years. Please refer to SID for detailed investment strategy and asset allocation* Other asset classes include Debt & Money Market Instruments, Gold ETF and REITs & InvITs.
Aggressive Plan Dynamic Plan Conservative Plan
Equity exposure65-80%.
Rest spread across other asset classes*
Equity exposure 65-100, will be through a
combination of Hedged & Unhedged equity. Rest
spread across other asset classes*
40-80% debt exposure inhigh quality
debt instruments, 20-40% in
Equity exposure.
12
13
Equity Investment Approach
Focus on fast growing sectors with bottom-up stock picking approach
Risk return tradeoff is likely to be favourable over the medium term
Good ideas can do better irrespective of their sector/theme/size
*Investment focus is based on current market outlook and is subject to fund manager discretion. Investors are advised to refer SID for investment strategy of the scheme
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Debt Investment Approach
*Investment focus is based on current market outlook and is subject to fund manager discretion. Investors are advised to refer SID for investment strategy of the scheme
Active duration management
The portfolio duration and credit exposures will be decided based on thorough research
Flexibility to invest in the entire range of debt instruments across credit/duration spectrum
Apply disciplined approach to investing
Past performance may or may not be sustained in future. Source of data: Bloomberg. SIP calculation are done based on monthly SIP (last day of the month). The returns are in XIRR. XIRR calculates the internal rate of return for series of cash flows. Above chart/figures/data is for illustration purpose and does not indicate performance of any scheme. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index; Source: Bloomberg. Above chart/data is for illustration purpose and does not indicate performance of any scheme. In the above chart, missed ‘n’ best days refers to not staying invested to capture ‘n’ best daily gains in the period from Jan 1980 to Mar 2018. Eg: Missed 10 days means Assuming daily return for the best 10 days (as per daily gains) as 0%. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index.
Trying to pick the top or bottom of markets is notoriously difficult
12.8%14.0% 13.5%
Return (XIRR)
Invested `1,000 on market high of every year
Invested `1,000 on market low of every year
Invested `1,000 on any random date of every year
(In this case, 1st Dec)
Regular investing helps ensure you don’t miss out on the best gains
15.9%
12.9%
9.0%
4.6%
0.9%
Fully invested Missed 10 bestdays
Missed 30 bestdays
Missed 60 bestdays
Missed 90 bestdays
Illustration(Last 39 years in Sensex)
15
A small delay can cost moreStart EarlyAnd benefit from the Power of Compounding
Past performance may or may not be sustained in future. Source of data: Bloomberg. SIP calculation are done based on monthly SIP (last day of the month). The returns are in XIRR. XIRR calculates the internal rate of return for series of cash flows Above chart/figures/data is for illustration purpose and does not indicate performance of any scheme. Data as on 31st Mar 2019. Data calculated based on S&P BSE Sensex Index.
`1.7 crs
`1.1 crs
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
Year0
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
Year11
Year12
Year13
Year14
Year15
Year16
Year17
Year18
Year19
Year20
Year21
Year22
Year23
Year24
Year25
SIP In S&P BSE Sensex for last 20 & 25 years
Investor A Investor B
Illustration:Monthly SIP of `10,000
Investor A: Investing since 25 yearsInvestor B: Investing since 20 years
Cost ofdelay:`66lacs
16
17
SECURE YOUR INVESTMENT GOALS,NO MATTER WHAT.
The Axis Retirement Savings Fundcomes with the exclusive provisionof iPlus SIP.(An open-ended retirement solution oriented scheme havinga lock-in of 5 years or till retirement age (whichever is earlier))
18
Complimentary insurance cover for long term SIPs*
In an unfortunate event of the demise of the investor, the
insurance cover will take care of unpaid instalments of SIP
committed bythe investor
iPlus SIP is a special feature that provides
investors withcomplimentary insurance cover
on long term SIPs
We ensure that the investor’s
planned investments
are taken care of
19
`8.4L
INVESTMENTGOAL OF
`12L`10,000/month x 10 yrs
Mr Kumar's demise post Year 3
(120-36 months) x `10,000
A SIMPLE EXPLANATION
Mr Kumar starts a ʻiPlus SIPʼ for `10,000/- per month for 10 years.The life insurance aims to cover the residual component of his goaland gets activated after 12 successful instalments.
After 12 SIP instalments, Mr. Kumar becomes eligible forinsurance benefit equal to remaining SIP instalments.For every SIP instalment paid, the insurance coverage falls by themonthly SIP amount.
In the case of Mr Kumar's unfortunate demise after 3 years, Insurance company will pay `8,40,000 to the registered nominee.
`10,000 x 108 months
Insurance
`3.6L
Investment
`10.8L
`
GOALACHIEVED
GOALACHIEVED
Insurance
Some of the key Terms & Conditions are: 1) Only the first unit holder will be eligible for the insurance cover. 2) Nominee will not have any claim if the death of investor occurs before 12 payments of SIP are completed 3) The insurance cover does not cover market related losses incurred on investment amount.*Please refer to SID of the scheme for detailed terms and conditions on iPlus SIP facility.The AMC is offering insurance cover to the investors under iPlus SIP as an additional Opt in facility in the interest of investor and is not acting as an insurance agent for marketing/sales of insurance policies. AMC is not intending/nor soliciting sale of any insurance services/products. The discretion to obtain the Facility rests with the investor at the time of SIP application. AMC/Trustee reserves the right to change/modify the terms & conditions.
Let Axis lend you a helping hand with insurance cover
• Resident individual investors aged above 18 years and not more than 51 years at the time of submission of SIP application.
• Minimum tenure of SIP is 3 years at a monthly frequency.
• Minimum SIP amount of `1,000 per instalment
• Insurance will commence upon investment of 12 successful SIP instalments. The insurance cover will be limited to the extent of the residual instalments of the SIP upto the ageof 55 years subject to a maximumof `50 lakhs.
• Insurance cover lapses immediately upon reaching 55 years of age or if the investor misses 3 continuous SIP payments, whichever is earlier.
• Partial or full redemption/switch-out of units purchased under Axis iPlus SIP before completion of the mandated SIP tenure/instalments.
Eligibility Commencement ofInsurance Cover Termination of Cover
20
Key features of the fund
Points Description
Scheme Position
Fund Structure
Lock In
Minimum Application Amount
Exit Load
iPlus SIP
Solution Oriented Product aimed at investing for one’s retirement
Open-ended fund with 3 Plans: Aggressive, Dynamic & Conservative
5 years from the date of allotment of units of the investment plan(s) under the scheme ortill retirement age of unit holder (i.e. completion of 58 years), whichever is earlier
First Application: `5,000 and in multiples of `1 thereafter. Additional Investment: `1,000 and in multiples of `1 thereafter.
Optionally available
Nil
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Product Label & Riskometer
Statutory Details and Risk Factors
Axis Retirement Savings Fund - Aggressive PlanThis product is suitable for investors who are seeking*:• Capital appreciation over long term• Investments primarily in equity and equity related instruments
Axis Retirement Savings Fund - Dynamic PlanThis product is suitable for investors who are seeking*:• Capital appreciation and income generation over long term• Investment in equity and equity related instruments as well as debt and money market instruments while managing risk through active asset allocation.
Axis Retirement Savings Fund - Conservative PlanThis product is suitable for investors who are seeking*:• Capital appreciation and income generation over long term• Investments in debt and money market instruments as well as equity and equity related instruments
Investors understand that their principal will beat moderately high risk
LOW HIGH
Moderate ModeratelyHighModera
tely
Low
Hig
hLow
Riskometer
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
22
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to `1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
THANK YOU!