common concerns

em Power

empower ing you to succeed

Common Concerns of

Investors regarding Equity Investment

Safe ?

Secure?

Risk ?

em Power


Common Concerns of


Common Concerns of


em Power


My Bank FD is giving me 9% (Guaranteed),Why should I invest in equity?

Equity Markets are RISKY,

I want FirstSafety

Concern 1

em Power


What Is The Meaning Of Safety?

PRESERVING THE

CAPITAL

OR

PRESERVING

THE PURCHASING

POWER

Key Objective of Investing :

Enhancing Purchasing PowerOver FY 1979–2013 CPI inflation has been 8.6%, eroding

purchasing power of Rupee by 94%

Source: Centre for Monitoring Indian Economy (CMIE), Motilal Oswal Financial Services Ltd

(MOFSL), Bloomberg, Motilal Oswal Asset Management Company (MOAMC) Internal Analysis.

Data as on 31st October, 2013.

1

Inflation erodes purchasing power of money

CPI = Consumer Price Index

Inflation erodes purchasing power of money

CPI = Consumer Price Index

Real Life Example


Enhancing Purchasing Power

2

No

min

al V

alu

e

Source: Bloomberg, MOAMC Internal Analysis. Data as on 31st October, 2013.

Current Value CAGR(%) Times

Sensex (Cum div.) 35420 18.55% 354.20

Sensex 21165 16.79% 211.65

Gold 4085 11.35% 40.85

Fixed Deposit 1619 8.41% 16.19


Enhancing Purchasing PowerEquities significantly enhance purchasing power of portfolios

Inflation-adjusted returns of different assets

Pu

rch

asi

ng

Po

wer

Source: Bloomberg, MOAMC Internal Analysis. Data as on 31st October, 2013.

Reality VS IllationNormally House hold expense gets double at every 5 years due

to CPI and lifestyle inflation.

Biggest Risk in Equity market “Not investing into it”

3*9% interest is assumed in Bank FD

Today After 15 years

25,000 Rs.2,00,000,

25,000 Rs.91062*

House Hold Expenses

FD

You think you are safe, but you are not: Ostrich Mentality

Current Value CAGR(%) Times

Sensex (Cum div.) 2175 9.34% 21.75

Sensex 1300 7.72% 13.00

Gold 251 2.70% 2.51

Fixed Deposit 99 -0.03% 0.99

Concern 2

em Power


Let The Market Correct

Then I Will Enter

5

Time Is More Important

Total Investment

Wealth At age 65

100000

10100000

20100000

30100000

40100000

50100000

60100000

Mr. SharmaMr. Mehta

3500002000000

52572371

42957119

Total Investment

Wealth At age 65

Wealth At age 65* 52572371 42957119

Investment Started at Age

Annual Investment

Investment con�nued �ll Age

Investment Held �ll age

Mr. Sharma Mr. MehtaName

Total Investment

19

50000

25

65

350000

26

50000

65

65

2000000

GREAT MOMENTS IN SCIENCE:

EINSTEIN DISCOVERS THAT TIME IS ACTUALL MONEY.

6

Effect Of Compounding Vs. Time

Value of Investment: 15000/- Per month

No of YearsSavings A/c Bank FD Equity Mutual Fund

10

15

20

25

30

2

5

4% 9% 12% 15% 18%

3,75,390

9,97,800

22,16,110

37,03,662

55,19,958

77,37,650

1,04,45,444

3,95,773

11,39,847

29,24,485

57,18,657

1,00,93,440

1,69,42,955

2,76,67,111

4,08,648

12,37,295

34,85,086

75,68,640

1,49,87,219

2,84,64,526

5,29,48,707

4,22,032

13,45,225

41,79,859

1,01,52,946

2,27,39,325

4,92,61,106

10,51,47,309

4,35,945

14,64,868

50,43,863

1,37,88,133

3,51,52,308

8,73,49,682

21,48,79,338

Savings and Bank FD return is assumed at 4% and 9% respec�vely. For Equity MF various assumed return scenario.

More Time = More Wealth

It’s Not It’s Timing Time Into The Market Which Is More Important.

Historically, those who stayed invested with their invested have made big fortunes.

7

Behavior Gap

People who constantly try to time the market end up getting

lesser return than the actual asset class performance

Major returns in equity market is delivered in few days.

By constantly trying to time the market, chances of losing those few days are very high.

“World is waiting for market to crash, market is waiting for your passion to crash.”

Risk Of Missing Few Best Days

Valua�on 14th July 2014 100000 invested 10 years as on of Rs for

ProductCurrent Value

Impact of Best Days missed

2 days 5 days 10 days 20 days 30 days 40 days

412,801 337,181 251,906 149,353 95,781 65,713

611,452 512,141 388,639 251,137 173,938 125,811

570,762 466,110 357,449 235,689 168,631 125,659

Sensex

Birla Sun Life Equity Fund

DSP BlackRock Opportuni�es Fund

HDFC Equity Fund

524,199

769,417

646,632

875,144 768,618 645,569 498,366 324,265 230,057 168,017

8

What if you missed BEST days?

524,199

412,801337,181

251,906

149,353 95,781 65,71350,000

250,000

450,000

650,000

850,000

Current Value


Sensex

Birla Sun Life Equity Fund

646,632

570,762

466,110

357,449

235,689168,631

125,659

100,000

300,000

500,000

700,000

900,000

Current Value


DSP BlackRock Opportuni�es Fund

875,144

768,618

645,569

498,366

324,265

230,057168,017

100,000

300,000

500,000

700,000

900,000

Current Value


HDFC Equity Fund

769,417

611,452

512,141

388,639

251,137173,938

125,811

50,000

250,000

450,000

650,000

850,000

Current Value


Value of Rs 1,00,000

invested before

10 years*


invested before

10 years*


invested before

10 years*


invested before

10 years*

9

Concern 3

em Power


Let The More Clarity Come,

Then I Will Invest

“WALL OF WORRY”

11

Market Doesn’t Wait For Clarity

Market always reacts in advance.

It goes up or down before the actual event takes place.

Waiting for the clarity may result in paying the premium and lesser returns.

So when odds are in favor of investment, don’t wait for the exact clarity.

People who were waiting for election to get over have missed the rally of 6000 points in Sensex.

Cost Of Clarity

Period

2013: Sept

2013: Dec

2014: March

2014: April

2014: Early may

2014: May

Market Indicator

Modi appointed as BJP's PM Candidate

BJP wins assembly elec�on of 4 states

Opinion polls accord majority to NDA

Heavy Campaigning by Modi

Exit Polls gives NDA majority

BJP alone gets majority

Wall of Worry

But there is infigh�ng within BJP

But these are only Hindi heartlands

But opinion polls were wrong in 2004 & 2009

But polariza�on of votes will happen

But exit polls always underes�mates Congress

But BJP does not have majority in upper house

Sensex

19733

21326

21920

22702

23551

24122

12

Concern 4

em Power


I don’t want to invest as the last 3 years returns are not good.Every time I invest in Equity Fund looking at

performance, but after my investments scheme

performance deteriorates.

14

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.80

%0

.19

%-2

.61

%-1

.87

%0

.10

%5

.33

%8

.99

%7

.31

%

Max

81

.03

%4

5.8

0%

40

.65

%4

2.1

4%

43

.13

%3

5.6

1%

26

.46

%2

5.2

9%

23

.41

%1

9.1

2%

17

.19

%1

3.7

6%

Ave

rage

15

.23

%9

.42

%8

.54

%1

1.5

3%

11

.87

%1

1.7

4%

12

.26

%1

2.8

3%

13

.37

%1

3.6

9%

13

.20

%1

1.3

4%

Concern 5

Sentiments are not good,

just look at the NEWS.

em Power


1218

Don’t Act On Headlines

“I think the worst mistake you can make in stock market is to buy or sell based on current headlines.”

- Warrant Buffet

8 January 2008

Sensex Level: 20,873

P/E Valuation: 28.51

Overall market sentiment

Net Equity inflows: `1,00,384 Crs.

(Jan 2006 - Sept 2008)

What happens next?

Sensex Returns since then: -1.44% CAGR*

20 November 2008

Sensex Level: 8,451



Net Equity inflows: `2,113 Crs.

(Oct 2008 - Mar 2009)

What happens next?

Sensex Returns since then: 20.21% CAGR*

28 March 2013

Sensex Level: 18,835



Net Equity inflows: `15,778 Crs.

(Apr 2011 - Feb 2013)

What do you think will

happen next ?

19

Concern 6

em Power


No One Is Investing In

Stock Market Right Now.

em Power


21

When To Invest?

What is more profitable: buying cheap or buying costly?

Choice 1: When Market is cheap, attractive but no one wants to invest.

Choice 2: When Market is costly And everyone wants to invest.

Why we opt for 2nd Choice?

Alone Group

Wrong Very Bad Not So Bad

Right Very Good Not So Good

Don’t Follow the Hand

Investor's Decision Vs Feeling

22

Concern 7

What if FIIs move out of

market?

em Power


24

502 540

685

882

997

1319

1635

1713

1722

1765

1757

1710

500

1000

1500

2000

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

No of FIIs registered with SEBI

FII is not a single entity

There are around more than 1700+ FIIs

They are all from the different parts of the world

All of them may not require the money at the same time.

They come for the longer period of time.

Over a period of time FIIs have increased their holding in Indian companies.

We think “Achhe din aane WALE hai”

FII believe “Achhe din aa GAYE hai.”

We are proud of our country and its economic power.

FII invest in our economic power and earn from it.

25

FII Inflow In Indian Equity Market

Since last 10 years FII is net seller only in 1 financial year.

FIIs are continuously buying the Indian Equity markets

On daily basis due to the huge volumes of FIIs market may be volatile, but over long term FIIs are interested only in buying.

Source: https://www.fpi.nsdl.co.in/web/data/fii_inv_det_financial.htm

Source: www.sebi.gov.in

Financial Year

How have we done over time?

Type of Shareholder

Holding in

NIFTY-

March 2008

Holding in

NIFTY-

June 2014

Holding in

CNX 500-

March 2008

Promoter

Non Promoters

FII

DII

Public

Others

Holding in

CNX 500-

June 2014

54.95%

16.05%

10.46%

8.20%

10.34%

47.62%

22.64%

11.92%

6.63%

11.19%

58.47%

14.59%

9.31%

8.36%

9.27%

52.11%

19.91%

10.33%

7.47%

10.20%

FII Flow cr in

1992-93 13

1993-94 5,127

1994-95 4,796

1995-96 6,942

1996-97 8,546

1997-98 5,267

1998-99 -717

1999-00 9,670

FII Flow cr in

2000-01

2001-02

Financial Year

10,207

8,072

2002-03 2,527

2003-04 39,960

2004-05 44,123

2005-06 48,801

2006-07 25,236

2007-08 53,404

-47,706

2009-10 110,221

2010-11 110,121

2011-12 43,738

2012-13 140,033

2013-14 79,709

2014-15 ** 60071

Total 717,688

2008-09

Financial Year

FII Flow cr in

26

Who Own What ?

BSE 500 ownership 30th June 2014

BSE Sensex ownership 30th June 2014

Banks/FIs 1.50%

Non-Promoter Corporate

4.20% Public 7.60%

MFs 3.40%

Insurance 5.40%

Govts. 16.40%

Others 3.20%

FIIs 22.20%

Foreign Promoters

8.20%

Indian Promoters

28.10%

Banks/FIs 4.60%

Non-Promoter

Corp. 3.50%

Public 6.80%MF 3.40%

Insurance 7.70%

Govt. 17.80%

Others 3.70%

FIIs 26.70%

Foreign Promoters

5.10%

Promoters 23.80%

Retail- 12%

FII – 22%

MF – 3%

Retail - 10%

FII – 27%

MF – 3%

27

Concern 8

Markets are at all time high,

it can’t move up further.

em Power


29

Sensex may be at all time high, but valuation are not.

One need to keep an eye the valuation measured by P/E ratio to find out weather the markets are cheap or costly

P/E of market swings like pendulum from low to high.

Current PE of market

New Cycle Of Earnings GrowthThe chart below indicates the S&P Sensex expected Earnings Per Share (EPS) growth from FY13 –FY15E.

81129

181250 266 291 278 280

216 236 272348

450523

718

833 820 834

1,0241,123 1,183

1,331

1,525

FY9

3

FY9

4

FY9

5

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4E

FY1

5E

FY93-96: 45% CAGR

FY96-03: 1% CAGR

FY03-08: 25% CAGR

FY08-13:7% CAGR

FY13-15E: 14% CAGR

Above forward-looking graphs & statements are based on external current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results. Past performance may or may not be sustained in future.

Source: Motilal Oswal Securities Ltd, as on March 31 , 2014

30

Current Valuations Below Decadal Average

24.65

10.67

14.68

7

12

17

22

27

Mar-04

10 Year Avg: 15.4x

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

4.15

1.64

2.40

1.2

2.1

3.0

3.9

4.8

10 Year Avg: 2.7x

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

SEN

SEX

P/E

(x)SEN

SEX

P/B

(x)

Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.

Source: Motilal Oswal Securities Ltd, as on March 31 , 2014

31

Sensex Projection

Low PE 10.68

Average PE 18.31

High PE 28.47

Historical PE movement

3 5 7

EPS 1467 2231 2951 3902

15 33467 44260 58534

18 40160 53112 70240

20 44622 59013 78045

22 49085 64915 85849

PE

Year

SENSEX projc�on @ es�mated EPS growth15%

3 5 7

EPS 1467** 2410 3356 4673

15 36155 50342 70096

18 43386 60411 84116

20 48207 67123 93462

22 53027 73835 102808

SENSEX projc�on @ es�mated EPS growth18%

Year

PE

Current EPS = Current Sensex/Current PE Sensex 28168 and PE 19.19 as per www.bseindia.com

**As on 18th Nov., 2014

32

Concern 9

em Power


I don’t need Mutual Funds, they also

go down with market.

Mutual Funds are even not beating

Sensex, why should I invest in MF?

I can do it on my own, I am educated

and intelligent.

34

It’s Not About Being Intelligent

“I can calculate the movement of stars, but not the madness of men.”

It’s Not About High IQ It’s About High EQNewton lost his life saving of 20000 British pound in year 1720 trying

on his own.

His loss is equal to approx Rs 18 cr. in today’s context.

Do you think you are more educated and intelligent than Isaac

-Sir Isaac Newton

35

Understanding And Doing It Different

Just by looking at the picture, I am

sure you can understand what the by

pass surgery is ..

Now if you have understood what

bypass surgery is,

If you or any of your member suffer from blockage of coronary artery?

WILL YOU DO IT YOURSELF,

Can You Do This On Your Own?

Understanding something and doing something is all together different ball game.

Par�culars

Investment On

Value As On (Panic

Investor)

Value As On (Confused Investor) Abs.

Growth

Smart Investor, Addi�onal Investment on 21st Sept 2001

14-Feb-00 21-Sep-01 23-Nov-0425000 50000 100000

Sensex 5924.31 2600.12 6009.86 1.44%

HDFC Equity Fund 100000 51179 212360 112% 316094 419828 627296

Franklin Bluechip 100000 66222 202540 102% 279003 355465 508390

Reliance Vision Fund 100000 41240 255610 155% 410563 565515 875421

HDFC Prudence Fund 100000 71651 235370 135% 317494 399618 563865

Tata Pure Equity 100000 43927 182360 82% 286569 390509 598388

Franklin India Prima Fund 100000 45550 256670 156% 397543 538415 820161

HDFC Top 200 100000 46002 169780 69% 262048 354315 538851

ICICI Pru Diversified Power 100000 45433 221220 121% 342949 464677 708135

Reliance Growth Fund 100000 26818 221750 121% 428468 635185 1048620

36

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20

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DSP

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Bir

la S

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66

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%

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la S

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7.9

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ple

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d -

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10

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Tata

Div

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L&T

Equ

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d -

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Fran

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Can

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bec

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qu

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fied

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%

L&T

Ind

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Fu

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row

th1

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%

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den

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Bir

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%

SBI M

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Glo

bal

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%

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cap

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row

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%

DSP

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I Pru

den

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10

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mer

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Fu

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89

12

58

.91

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Tata

Mid

Cap

Gro

wth

Fu

nd

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A -

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10

00

00

32

41

51

58

77

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Bir

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Op

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%

37

Concern 10

I want to stop my SIP, because the returns are not good for last 5 years

em Power


39

Equity Investment - Game of Patience

Curious case of Chinese Bamboo

You take a tiny seed, plant it and water it...

you get a tiny sampling.... nothing more

1.

2.

3.

4.

5.

YEARS

You water it, fertilize it.... the sampling stays as it is....

nothing happens

You continue to water it, take care of it...still nothing happens

Against your better judgment, you need to continue to

water it, fertilise it... and still nothing will happen

To everyone's surprise, the tree sprouts and grows NINTY

feet in SIX weeks

What was going on in first Few Years?

The tiny sampling was actually developing

its root system underground to sustain its

impending over the ground growth fifth

year onwards.

If you had uprooted the sampling to see

why it was not growing, it would die.

But if you were patient and had faith, you

would witness the miraculous growth later on

Investing – similar game of patience

Ch

inese

Bam

bo

o t

ree

test

s yo

ur

pati

en

ce

40

SIP Stopped Vs SIP Continued

Normally average Investor stops SIP after

3 or 5 years if returns are not good or negative

SIP Start Date: 15th Sept Valuation as on: 17th Novemebr 2014

Total Investment Value CAGR Total Investment Present Value(SIP) CAGR

Birla Sun Life Equity Fund - Growth 180000 171787 -3.17 255000 429373 25.90

Birla Sun Life Mid Cap Fund - Plan A -

Growth

180000 164416 -6.11 255000 431710 26.19

DSP BlackRock Equity Fund - Reg -

Dividend

180000 166851 -5.13 255000 403877 22.75

DSP BlackRock Small and Midcap Fund -

Reg - Growth

180000 159774 -8 255000 458005 29.26

DSP BlackRock Top 100 Equity Fund - Reg

- Growth

180000 179842 -0.06 255000 373815 18.81

HDFC Equity Fund - Growth 180000 164718 -5.98 255000 423069 25.14

HDFC Growth Fund - Growth 180000 165589 -5.63 255000 375811 19.08

HDFC Top 200 - Growth 180000 168967 -4.28 255000 404833 22.87

Kotak 50 - Growth 180000 176727 -1.25 255000 386695 20.53

Reliance Growth - Growth 180000 163569 -6.45 255000 413905 24.01

Reliance Vision - Growth 180000 153723 -10.52 255000 412300 23.81

Sundaram SMILE Fund - Reg - Growth 180000 150503 -11.89 255000 510341 34.98

Tata Equity P/E Fund - Plan A - Growth 180000 163176 -6.61 255000 435214 26.60

Scheme NameSIP of Rs 5000

per month

3 Years Return as on 17 th Aug. 13 ( ) SIP Stopped

Return of same �ll Nov 2014

(SIP con�nued )

Total Investment Value CAGRTotal

Investmen

Present

Value(SIP)CAGR

Birla Sun Life Equity Fund - Growth 300000 326814 3.49 375000 724518 21.36

Birla Sun Life Mid Cap Fund - Plan A - Growth 300000 330158 3.9 375000 757908 22.83

DSP BlackRock Equity Fund - Reg - Dividend 300000 332700 4.22 375000 702896 20.37

DSP BlackRock Small and Midcap Fund - Reg - Growth 300000 344293 5.62 375000 857952 26.92

DSP BlackRock Top 100 Equity Fund - Reg - Growth 300000 351504 6.47 375000 640076 17.31

HDFC Equity Fund - Growth 300000 344709 5.67 375000 771726 23.43

HDFC Growth Fund - Growth 300000 333513 4.32 375000 658214 18.22

HDFC Top 200 - Growth 300000 343043 5.47 375000 718737 21.10

Kotak 50 - Growth 300000 336806 4.72 375000 649006 17.76

Reliance Growth - Growth 300000 319006 2.5 375000 707261 20.57

Reliance Vision - Growth 300000 291942 -1.11 375000 686439 19.59

Sundaram SMILE Fund - Reg - Growth 300000 291401 -1.18 375000 868338 27.32

Tata Equity P/E Fund - Plan A - Growth 300000 325948 3.38 375000 761619 23.00

5 Years Return as on 17 th

Aug.13 (SIP Stopped)

Return of same �ll Nov 2014

(SIP con�nued )

SIP Start Date: 15th Sept Valuation as on: 17th Novemebr 2014

Scheme Name SIP of Rs 5000 per month

42

Concern 11

I want to save for my Son’s

education/My retirement;

why should I invest in equity? wherein

there is no surety of returns?

em Power


44

PPF Returns

Normally average Investor stops SIP after

3 or 5 years if returns are not good or negative

45

ELSS Vs. PPF(i

n R

s. L

acs)

Rs. 15 LacsRs. 30.30 Lacs

Rs. 128.99 Lacs

(1.29 Crore)

0

20

40

60

80

100

120

140

Invested Amt. PPF ELSS

ELSS Vs. PPF

Time Horizon

Rate of ReturnCurrent Value

(Rs. Lacs)

15 Years

15 Years

PPF

ELSS

1,00,000

1,00,000

Rs. 15 Lacs

Rs. 15 Lacs

Refer the PPF interest rate table

24.34%*

Rs. 30.30 Lacs

Rs. 128.99 Lacs

Invst. Made in

Invst. Per Annum(Rs.)

Invst. Till Date (Rs. Lacs)

46

Comparison Of ELSS Vs. PPFThe Table shows value of 1 lac invested every year in PPF, Sensex

and Various ELSS schemes on 31st July of every year.

Valuation Date: 31 July 2014.

Summary

past performance may or may not sustain in future.

7 YearsScheme Name 3 Years 5 Years 10 Years 12 Years1 Year 2 Years

Axis Long Term Equity Fund

Birla Sun Life Tax Plan

Birla Sun Life Tax Relief 96

BNP Paribas Long Term Equity Fund

Canara Robeco Equity Taxsaver

DSP BlackRock Tax Saver Fund

Franklin India Taxshield

HDFC Long Term Advantage Fund

HDFC Taxsaver

HSBC Tax Saver Equity Fund

ICICI Prudential Taxplan

IDFC Tax Advantage (ELSS) Fund

Kotak Taxsaver

L&T Tax Advantage Fund

Principal Personal Taxsaver

Principal Tax Savings Fund

Reliance Tax Saver (ELSS) Fund

Religare Invesco Tax Plan

SBI Magnum Tax Gain Scheme 93

Sundaram Taxsaver

Tata Tax Saving Fund - Plan A

UTI Equity Tax Savings Plan

1,67,843

1,49,791

1,51,256

1,50,328

1,43,582

1,52,118

1,52,607

1,48,587

1,60,013

1,54,517

1,59,549

1,42,927

1,50,176

1,43,163

1,44,401

1,55,844

1,95,481

1,55,117

1,51,442

1,43,888

1,44,549

1,40,607

3,59,968

3,14,530

3,18,358

3,22,219

3,00,129

3,22,236

3,20,471

3,16,690

3,31,075

3,18,843

3,34,660

3,07,721

2,98,445

3,00,045

3,01,251

3,31,379

3,87,782

3,26,062

3,15,988

2,94,376

3,04,000

2,93,482

5,74,686

4,95,254

5,00,784

5,13,107

4,74,621

5,14,376

5,01,061

4,97,025

5,12,064

5,10,056

5,27,932

4,85,999

4,61,354

4,65,471

4,72,463

5,34,103

6,13,274

5,11,120

5,00,517

4,61,945

4,75,139

4,56,522

NA

8,59,910

8,35,462

9,18,546

8,55,966

8,90,104

9,11,924

8,76,224

8,87,317

8,80,483

9,44,620

8,59,657

7,83,472

8,26,702

7,92,725

8,99,764

10,84,115

9,14,100

8,61,570

7,77,509

8,38,694

7,83,252

NA

13,37,830

13,15,051

14,07,176

15,01,406

14,57,672

14,94,884

14,41,794

14,77,897

14,17,586

16,27,640

NA

12,18,576

13,82,805

12,39,661

13,37,428

17,74,660

15,63,288

13,65,927

12,21,409

13,46,717

12,11,495

NA

24,55,300

24,40,837

NA

31,50,460

NA

29,60,255

26,65,502

29,68,633

NA

30,87,422

NA

NA

NA

23,14,297

23,98,953

NA

NA

28,75,099

25,63,615

24,22,991

21,19,101

NA

48,67,797

43,95,364

NA

55,94,754

NA

56,53,976

55,14,983

64,20,773

NA

63,90,486

NA

NA

NA

39,66,763

43,15,567

NA

NA

68,97,552

51,54,556

45,24,251

35,75,622

PPF Calculated @ Actual Rates

Maximum

Minimum

Average

Sensex

1,08,909

1,95,481

1,40,607

1,52,626

1,31,663

2,27,340

3,87,782

2,93,482

3,19,078

2,82,245

3,56,056

6,13,274

4,56,522

5,02,676

4,39,635

6,45,176

10,84,115

7,77,509

8,70,577

7,54,037

9,82,442

17,74,660

12,11,495

14,07,045

11,79,196

15,96,487

31,50,460

21,19,101

26,47,882

22,38,518

20,93,017

68,97,552

35,75,622

51,74,803

37,51,234

47

Case Study – Retirement Planning

• Retirement Age

• Life Expectancy

• Current Monthly Expense

• Inflation

• Risk free return after retirement

• Monthly Expense at retirement

• Corpus Required for the Retirement

Age 60 Years

80 Years

25000

8%

9%

1,71,212

4,53,30,143

Name: Raj Sharma- Age 35

Years to Save – 25

Expected Return 8% 12% 15% 18% 20%

Monthly Investment required

49,550 26,630 16,444 10,069 7,241

Power of compounding is the 8th wonder of world.

Retirement Corpus needed 4.53 Cr.

48

Case Study – Child Education Fund

• Child Age

• Higher Education Age

• Current Education expense

• Inflation

• Expected Education cost

(after 13 years)

5 Years

18 Years

10,00,000 Rs.

8%

27,19,623 Rs.

Parent : Anil Kumar - Child Name : Samir

Years to Save – 13

Power of compounding is the 8th wonder of world.

Child Education Fund Required 27.19 Lac.

Expected Return 8% 12% 15% 18% 20%

Monthly Investment required (Rs)

10,111 7,600 6,111 4,902 4,228

49

Concern 12

What if the fund chosen

by me under-perform?

em Power


51

Past performance as

on 23td June, 2014

Par�culars 15 Years

Total Number of Schemes 49

Highest Return (%) 26.24

Lowest Return (%) 10.68

Average Return (%) 18.70

Schemes with 20% plus CAGR 22




All diversified equity funds which has completed 15 years as on 23rd June, 2014.

• Don’t invest in Schemes based on Past Performance only.

• Consult your Financial Advisor

• Ask for Fund Selection Parameters.

52

em Power


Disclaimer and Risk Factors:

This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information/data here in alone is not suf�icient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, �igures, charts/graphs, estimates and data included in this presentation are as on particular date mentioned into the presentation and are subject to change without notice. While utmost care has been exercised while preparing this document, Prudent CAS Ltd does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on

our views and assumptions and involve known and unknown risk and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statement. Reader shall be fully responsible / liable for any decision taken on the basis of this presentation. Investments in Mutual Funds are subject to market and other risks and there is no assurance or guarantee of returns. The material is based upon information we consider reliable, but we do not represent that it is accurate or complete, and it should not be solely relied upon. Neither Prudent CAS Ltd nor any person connected with it accepts any liability arising from the use of this material. The document is not for the public distribution and has been furnished solely for information and must not be reproduced or redistributed to any other person. Person into whose possession this document may come are required to observe these restrictions.

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