(FINANCIAL ADVISE FOR THE WISE

FINVISE INDIA

(FINANCIAL ADVISE FOR THE WISE

www.finviseindia.com

What Rs 2000 p.m can get you….

A sumptuous luxurious dinner for your family

Visiting your nearest relative place

Buy your monthly grocery

Make you a Millionaire*

*please refer slide 3 for more details

What does it take to create wealth…

Value /Yrs 3 5 10 15

5,00,000 12,000 7000 2,500 1,200

10,00,000 23,800 13,000 4,900 2,400

25,00,000 60,000 32,500 12,200 6,000

50,00,000 1,20,000 64,500 24,300 12,000

Investing Rs 2400 per month @ 10% p.a for 15 yrs makes you a

Millionaire

50,00,000 1,20,000 64,500 24,300 12,000

100,00,000 2,38,000 1,30,000 48,500 24,000

This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast on minimum returns and safeguard of capital. SIP does not assure a profit or guarantee protection against loss in a declining market. The calculation shows the outcome of investing a specified amount at a certain assumed rate of interest per annum.

The table shows the SIP amount required to be invested per month for achieving the target amount in the specified time period. The hypothetical rate of return on the investments is assumed at 10% p.a.

Most likely reasons to invest…..

Child’s Education

Child’s Marriage

Housing

Everyone has one or more of the above reasons to invest for!

Retirement

Safety

7 SUCCESSFUL HABITS OF INVESTING

� Start early

� Don’t time the market

� Prudent Asset allocation

Would you like to guess the 8th habit that

� Invest regularly

� Understand the risk reward ratio

� Have a set investment objective

� Invest for long term

8th habit that we got for you?

Insure your financial goals…..

Before we know more about this product….let us understand the investment climate around us!

VALUE OF MONEY OVER TIME

Impact of Inflation on monthly expenses of Rs 20,00 0

20,00025,526

32,578

41,579

53,066

10,000

20,000

30,000

40,000

50,000

60,000

Mon

thly

Exp

s in

Rs

Inflation Inflation –– A Devil, we A Devil, we need to beat it!need to beat it!

-

Today 5 years 10 years 15 years 20 years

Period

Inflation @ 5% p.a

Value of Rs 1 lac over time

100,000

78,353

61,391

48,10237,689

-

20,000

40,000

60,000

80,000

100,000

120,000

Today 5 years 10 years 15 years 20 years

Period

Val

ue o

f Mon

ey

WHERE DO PEOPLE SAVE THEIR MONEY?

Chit fund/NBFC, 9.4

Gold, 5.8Mutual Fund, 1.2

Real Estate, 5

Equity market, 1.1

Banks, 44.9

Postal Savings, 11.6

Life insurance, 32.8

Source: Invest India Incomes and Savings Survey 201 2**Mutual Fund as an Asset Class has a very low penet ration

Long Term Investing – Case Studies

Its not the timing

but the time in the market which matters

Invest Systematically…..Invest Systematically…..

Invest Long term…

Money grows over a period of time…

Rs 1000 invested at 8%p.a every month for…

Power of Compounding

592,947

… just like a rolling snowball gathers snow & grows .

This is an hypothetical illustration to explain the concept of “Power of Compounding”. Past Performance may or may not be sustained in fut ure.

184,166

348,345

592,947

60,000

240,000180,000

120,00073,967

-100,000200,000300,000400,000500,000600,000

5 yrs 10 yrs 15 yrs 20yrs

Period

Am

ou

nt a

fter

com

po

un

din

g

Principal Amount

IT ALWAYS PAYS TO START EARLY & SAVE FOR RETIREMENT

B holds for20 years

A holds for 30 years

Start Early

120,000 120,000

1,488,603

689,511

500,000

1,000,000

1,500,000

Am

ount

at t

he A

ge o

f 60

� A & B invest Rs. 2000 every month, earning interest @ 8% p.a. on a monthly compounding basis

� A starts at the age of 25 yrs, while B starts investing at the age of 35 yrs

� Both of them invest for 5 yrs (Rs. 1.2 lacs) and hold their investments till 60 yrs. of age

� A’s investment appreciated to over Rs.14,88,603 while B’s investment grew to only Rs. 6,89,511

Only an illustration to explain the power of compounding.

120,000 120,000

-

500,000

A B

People Who have invested

Am

ount

at t

he A

ge o

f

& Don’t Time the Market…

Scenarios Investor buys at Market Peaks

Investor buys at Market Lows

Investor buys at constant interval

BSE Sensex 16.69% 23.09% 19.12%

BSE 100 17.64% 24.73% 20.58%

Reliance Growth Fund-Retail Plan- Growth Plan – Growth Option* (RGF)

36.65% 42.13% 38.28%

Reliance Regular Savings Fund-Equity Option- Growth Plan * (RRSF- EQ)

27.16% 47.92% 36.03%

Rs 10,000 invested every year for a period of 16 ye ars in RGF from Jan 96 to April 12 & in RRSF- EQ for a period of 7 years from June 05 to April 12

Past Performance may or may not be sustained in future.

*Returns as on 30th April 12

� Simple, straightforward way to create

long term wealth

� Understand and embrace

risk

Put time on your side

Make the right choice….

� The alternative is to :

Follow markets very closely

Time your entry and exit very well

Select your stocks judiciously� Put time on your side

� Invest systematically

� Don’t worry about market timing

� A tried & tested method

Select your stocks judiciously

And hope that you get it right more

often than not!

The choice is yours to make………..

SYSTEMATIC INVESTMENT PLAN (SIP) & ITS BENEFITS

SIP is a long term investment technique under which you invest a fixed sum of money

on a monthly or quarterly basis in a mutual fund scheme at the prevailing NAV.

Inculcates savings habit

Eliminates need for timing

markets

Helps averaging cost of investment

Protects against market

volatility

Improves probability of better returns

This allows you to save and invest regularly while you are earning.

Past Performance of SIP in Reliance Growth Fund

SIP Installment /Yrs 3 5 10 Since Inception

2,000 1,03,985 1,90,429 5,34,487 95,47,569

3,000 1,55,980 2,85,645 8,01,737 1,43,21,352

5,000 2,59,971 4,76,079 13,36,230 2,38,68,926

10,000 5,19,940 9,52,156 26,72,451 4,77,37,844

15,000 7,79,915 14,28,240 40,08,690 7,16,06,765

Inception Date: 8th Dec 1995. Returns are of Retail Plan- Gro wth Plan – Growth option as on 31st Aug 2015

Past Performance may or may not be sustained in future.

The above table shows the historical SIP performance of Reliance Growth Fund (Retail Plan – Growth Plan – Growth

option)

For example; A person who had made an SIP of Rs 5000 p.m in the above fund since inception on 8th Dec 1995 would have

invested Rs 11.85 lacs by 31st Aug 2015 and have earned a total amount of Rs 2.38 crs (As per the highlighted cell)

PPF

VSVS

ELSS MUTUAL FUNDS

REAL ESTATE VS EQUITY MFS VS GOLD

Thanks for your time