Achieving Your Goals in Life with SHIPRA FINANCIAL CONSULTANCY What is the Average Age?

When a child needs Higher Education?

20 Years

What is the Average Cost of

Higher Education Today?

Engineer : Rs.10 lacs

Medical : Rs.15 lacs

Foreign Study : Rs.25 lacs

How much would the Higher Education

cost you at the maturity?

Assuming current age is 3 years (17 years remaining)

Engineer : Rs.27 lacs

Medical : Rs.41 lacs

Foreign Study : Rs.67 lacs

Assuming inflation @ 6%

What is the Average Age

when a child gets married?

24 Years

What is the Average Expenses of

Marriage Today?

Rs.10 Lacs

How much would your child’s Marriage

cost you at maturity?

Rs.34 Lacs

Assuming inflation @ 6%. Current Age is 3 yrs & Marriage Age is 24 yrs.

What is the Average Retirement Age?

60 Years

What is an Average Monthly Expense of a

Middle-class House Hold?

Rs.10,000/- p.m

How much Retirement Kitty

would you need at Retirement?

Rs.2.20 Crores

Monthly Expenses would grow from Rs.10,000/- now to over

Rs.64,500/- at Retirement & would continue to grow thereafter…

Current Age: 28 years. Retirement Age - 60 yrs. Life Expectancy - 90 yrs.

Assuming inflation @ 6%. Returns on Retirement Kitty – 6%

Brief Look at Our Life Goals

Assuming: Current Age

Self : 28 yrs Child: 3 yrs

Child Education : 20 yrs

Engineer : Rs.27 Lacs

Medical : Rs.41 Lacs

Foreign Study : Rs.67 Lacs

Wedding of Child : 24 yrs

Marriage : Rs.34 Lacs

Retirement: : 60 yrs (Self)

Retirement Kitty : Rs.2.20 Crores

Creating Wealth

How much can a person

save on a regular basis?

Rs.5,000/- p.m.

Creating Wealth

If a person can save Rs.5,000/- per month

What will be his wealth when he retires?

Assuming:

Current Age: 28 yrs. Retirement Age: 60 yrs.

Invests in an Asset class that gives returns of 8%

At Age 60 his wealth would have been

Rs.84 Lacs

Amount Invested: Rs. 19.20 Lacs. Times amount gets rolled over: 4.37.

Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Creating Wealth

If a person can save Rs.5,000/- per month

What will be his wealth when he retires?

Assuming:

Current Age: 28 yrs. Retirement Age: 60 yrs.

Invests in an Asset class than gave returns of 20%

At Age 60 his wealth can be

Rs.11.30 Crores

Amount Invested: Rs. 19.20 Lacs. Times amount gets rolled over: 58.86.

Past Performance

Year Sensex Investment Rs.

1979 100 1 Lacs

2009 11400* 1.14 crore

In past 30 years BSE Sensex has given approx. 17.1% returns

This is in spite of … • Two wars

• At least three major financial scandals

• Assassination of 2 prime ministers

*As on 30th April 2009

• At least 3 recessionary periods • 10 different governments and

• An unfair share of natural disasters

Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing.

Back to Basic: Equities are not risky in Long Term PERFORM ANCE OF BSE SENSITIV IT Y INDEX - Equitie s not r is k y in long r un

Rollin g Re tur n s - Gr ow th

Years YEAR END SENSEX

level

0 31-Mar-79 100.00

1 year 3 years 5 years 7 years 10 years 12 years 15 years

1 31-Mar-80 128.57 28.57%

2 31-Mar-81 173.44 34.90%

3 31-Mar-82 217.71 25.52% 29.61%

4 31-Mar-83 211.51 -2.85% 18.05%

5 31-Mar-84 245.33 15.99% 12.25% 19.66%

6 31-Mar-85 353.86 44.24% 17.58% 22.44%

7 31-Mar-86 574.11 62.24% 39.49% 27.05% 28.36%

8 31-Mar-87 510.36 -11.10% 27.66% 18.58% 21.77%

9 31-Mar-88 398.37 -21.94% 4.03% 13.50% 12.61%

10 31-Mar-89 713.60 79.13% 7.52% 23.81% 18.48% 21.72%

11 31-Mar-90 781.05 9.45% 15.24% 17.16% 20.52% 19.77%

12 31-Mar-91 1167.97 49.54% 43.12% 15.26% 24.97% 21.01% 22.73%

13 31-Mar-92 4285.00 266.88% 81.76% 53.04% 42.80% 34.71% 33.94%

14 31-Mar-93 2280.52 -46.78% 42.93% 41.76% 21.78% 26.84% 23.95%

15 31-Mar-94 3778.99 65.71% 47.90% 39.57% 33.11% 31.45% 26.85% 27.40%

16 31-Mar-95 3260.96 -13.71% -8.70% 33.09% 35.03% 24.87% 25.60% 24.05%

17 31-Mar-96 3366.61 3.24% 13.86% 23.58% 24.81% 19.35% 24.39% 21.86%

18 31-Mar-97 3360.89 -0.17% -3.83% -4.74% 23.18% 20.74% 20.63% 20.02%

19 31-Mar-98 3892.75 15.82% 6.08% 11.29% 18.77% 25.60% 17.29% 21.43%

20 31-Mar-99 3739.96 -3.92% 3.57% -0.21% -1.92% 18.02% 18.05% 19.92%

21 31-Mar-00 5001.28 33.73% 14.17% 8.93% 11.87% 20.40% 23.47% 19.31%

22 31-Mar-01 3604.38 -27.93% -2.53% 1.37% -0.67% 11.93% 14.45% 13.03%

23 31-Mar-02 3469.35 -3.75% -2.47% 0.64% 0.89% -2.09% 13.23% 13.63%

24 31-Mar-03 3048.72 -12.12% -15.21% -4.77% -1.41% 2.95% 8.32% 14.53%

25 31-Mar-04 5590.60 83.38% 15.76% 8.37% 7.54% 3.99% 2.24% 14.71%

26 31-Mar-05 6492.82 16.14% 23.23% 5.36% 7.58% 7.13% 9.11% 15.16%

27 31-Mar-06 11279.96 73.73% 54.67% 25.63% 17.08% 12.85% 9.54% 16.32%

28 31-Mar-07 13072.10 15.89% 32.73% 30.38% 14.71% 14.55% 12.27% 7.72%

29 31-Mar-08 15644.00 19.67% 34.06% 38.69% 23.33% 14.92% 13.66% 13.70%

30 31-Mar-09 9708.50 -37.94% -4.88% 11.67% 15.84% 10.01% 9.24% 6.49%

Pr ob ab ility of Los s

Pr obability of L os s (%)

10/29 5/27 3/25 3/23 1/20 0/18 0/15

35.71% 19.23% 12.50% 13.64% 5.26% 0.00% 0.00%

•Long Term Equity Returns is a function of the profitability growth

of the companies which in turn is related to the economic growth

Eco. Growth Demand Co. Profits Returns

Returns in Equities are function of Earnings

BSE SENSEX Vs Ea rning

Sensex Close Sensex Earning

Note:SENSEX Value and Earnings are taken from Jan 91 to March 09. Both figures are equalized to 100 for Jan 91 for comparison purpose.

Managing Investor’s Psyche

Wrong emotion dominates at wrong time

Greed

Fear

Hope

Cycle of Fear, Greed & Cycle of Fear, Greed & H Hope

Give Time rather than Timing the Equity market

Investing in the BSE

Sensex – 25 years

15.07% 16.90%

16.02%

Data source: ICRA MFIE

Fixed investment at

Fixed investment at

Fixed investment on highest sensex value

every year lowest sensex value

every year

1 day of every month

Market timing does not matter over thest long term

Past Performance

Performance of Systematic Investment Plans (SIPs)

in Mutual Fund Equity Oriented Schemes

You do an SIP of

Rs.10,000 per month

Total Amount Invested

Mutual Fund Equity Schemes

BSE Sensex

Investment Value (Rs.)

% Ann. Returns

Investment Value (Rs.)

% Ann. Returns

During last 5 years Rs. 6 lacs 7.25 lacs 7.2 7.14 lacs 7.00

During last 10 years Rs.12 lacs 34.84 lacs 19.66 24.72 lacs 13.91

Performance as on 30th April 2009. Number of major equity schemes covered; for 5 year performance –

45 & for 10 year performance 22.

Also Equity Mutual Funds have outperformed Sensex, as shown above

Risk factors: Mutual Fund investments are subject to market risks. Past performance may.or may not be repeated in future. Please read the offer document carefully before investing

How can we create wealth?

Start Saving Early

The longer you save, the more you make

Save in the Right Asset Class

This will dictate how much wealth you create …

Save Regularly

Even a small amount saved regularly, is good

Ram Shyam

Investment Starting Age 25 40

Investment - Monthly SIP Rs.5,000/- Rs.10,000/-

Saving Years till age 60 35 years 20 years

Total Investment Made Rs.21 lacs Rs.24 lacs

Starting Early

5.71 Crores*

1.33 Crores*

Give time to your investments

rather than timing * Constant Savings

25 years 40 years 60 years

Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

1990-9

1

1991-9

2

1992-9

3

1993-9

4

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

Selecting Right Asset Class

Equity market (represented by BSE Sensex) has outperformed all

other investment avenues even after steep fall of 2008-09.

14000

12000 10000

8000

6000

Gold

Sensex

Co Deposits

Bank Deposits

Inflation

4000

2000

0

Save Regularly

Disciplined Investing through Systematic Investment Plans (SIPs) is

the ideal way to reduce risk

Twin Benefits of Investing Regularly

Rupee Cost Averaging Average Purchase cost

will be less

Automatic Timing At higher prices - less units At lower prices – more units

Market Units Purchased

Units Purchased Market

Rising Market Falling Market

Wisdom

“We do not need to be wealthy to be an investor …

But we can be wealthy if we are investors”

• The Right way to create wealth …

• Wealth can be successfully created if we follow

the three principles ...

Helping you achieve your goals in life …

Child Education - Saving years: 17 yrs

Education Target GAP Amt.

Engineer Rs.27 Lacs Rs.2,000

Medical Rs.41 Lacs Rs.3,000

Foreign Study` Rs.67 Lacs Rs.5,000

Amount Actually paid: 4.08 Lacs (for 2,000)

Child Marriage - Saving years: 21 yrs

Target : Rs.34 Lacs

GAP Amount : Rs.1,500

Amount Actually paid: 3.78 Lacs

Assuming returns of 20%. GAP figures are rounded off . Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Helping you achieve your goals in life …

Retirement - Saving years: 32 yrs

Target : Rs.2.20 Crores

GAP Amount : Rs.1,000

Amount Actually paid: 3.84 Lacs

Small monthly investments of few thousand rupees can help you

Achieve your goals & Relax in life!

Assuming returns of 20%. GAP figures are rounded off . Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Disclaimer:

The above presentation is for private circulation only. This is for information purpose only and is not intended to be and must not be taken as the basis of any investment decision. Nothing in this presentation should be construed as an investment advice ,and/or as an advice to buy or sell or solicitation to buy or sell any mutual fund / schemes. Shipra f inancial Consul tancy has taken due care & caution in preparing this presentation and the information has been taken from various sources. However, Shipra f inancial Consul tancy or any of its employees, do not take any responsibility or liability, expressed or implied, whatsoever, for any investment decision made or taken on the basis of this presentation. The viewers are strongly advised to seek expert professional help before making any decisions. The presentation contents returns / performance figures which are for illustrative purpose only. There is no guarantee that the projection given would materialize. Shipra f inancial Consul tancy or any of its employees cannot be held responsible for any performance or non-performance of the illustrations / projections depicted in this presentation.

Risk Factors:

Mutual funds and securities are subject to market risks and there can be no assurance and no guarantee that the objectives of Mutual Fund schemes invested in can be achieved. As with any investment in securities, the NAV of the units issued under the Scheme (s) can go up or down, depending up on the factors and forces affecting the capital markets. Past performance of the Sponsor/ AMC/ does not indicate or guarantee the future performance of the Scheme(s) of any Mutual Fund. Investors are therefore urged to read the Offer Document (s) carefully, and consult their legal/tax/investment advisor before they invest in the scheme(s). Investors in the scheme(s) are not being offered a guaranteed or assured rate of return or monthly or regular/periodical income distribution, and the actual returns and/or periodical income distribution to an investor will be based on the actual NAV, which may go up or down, depending on the market conditions. Kindly refer to the Offer Document of the respective schemes carefully prior to investing. For more Information

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