SIP

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SIP

• Systematic Investment Plan
• (Simplest Solution to Wealth Creation)

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• FINANCIAL PLANNING FOR THE FUTURE

Do You Want To Compromise On Your Living
Standard After Your Retirement ?
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Savings of Rs 100000 will minify year after
year,due to .
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MEANS TO ACHIEVE GOALS
A SIMPLE SOLUTION TO WEALTH CREATION
INVEST EARLY INVEST REGULARLY (DISCIPLINED
SAVINGS) INVEST CORRECTLY (RIGHT ASSET CLASS
) WEALTH CREATION
SUCCESS COMES SIMPLY BY DOING SIMPLE THINGS
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COMMON FEARS

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EXCUSES AND JUSTIFICATIONS

• I do not have enough money to invest.
• Ans Minimum Amount require for SIP is as low as
  Rs 500
• I am too busy making money to worry about
  managing it.
• Ans Fund Manager of any respective SIP mutual
  fund scheme will manage your money .
• I do not have the time
• Ans Auto Debit System for paying the
  installments will save your money and energy.
• I dont have expertise to follow market movements
  and make investments at the right time.
• Ans There is no need to time the market.

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SIP SYNOPSIS

• SIP is an investment program that allows you to
  contribute a fixed amount in mutual funds at
  regular intervals .
• Invest a fixed sum every month. (6 months to
  perpetual - through post-dated cheques or Direct
  Debit facilities) .
• Fewer units when the share prices are high, and
  more units when the share prices are low. Average
  cost price tends to fall below the --average NAV
  .
• Merits of SIP
• Discipline Investor (Think of each SIP payment as
  laying a brick. One by one, youll see them
  transform into a building. Youll see your
  investments accrue month after month)
• Power of Compounding
• Rupee Cost Averaging
• Hassle Free

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BENEFITS OF EARLY INVESTING
JAMES BOND
Starting Age 25 years 40 years
Monthly SIP Rs.5,000/ Rs.15,000/
Saving Years till Age 60 35 years 20 years
Total Amount Invested Rs.22 lacs Rs.36 lacs
Wealth at Age 60 years Rs.26 crores Rs4.80crores
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WHY ASSET ALLOCATION IS IMPORTANT
200000000
150000000
100000000
50000000
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• Systematic Investment plan (S.I.P) of Rs 3000 per
  month invested for 30 years and compounding at
  24 annually will grow to Rs 18.69crores
• The same amount invested at 20 annually will
  grow to Rs 6.89 crores.
• Now if the return is changed to a conservative
  15 the amount would be Rs 2.07 crores.
• The same amount invested in a Bank at 6 per
  annum will grow to a paltry Rs 30.13 lacs. You
  actually destroy wealth by putting money into
  Bank and post office deposits.

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POWER OF COMPOUNDING

• Preeti started investing at the age of 25. She
  invested Rs.10,000 each year for 35 years and
  then she stopped contributing.
• Rohit started investing at the of age 35 and then
  invested Rs.10,000 each year for 25 years.
• If they have invested Rs 10,000 annually till 35
  years then they could have fetched Rs 1.013 crore

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1.01crore
76.9 lacs
24.6lacs
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Thank You
RUPEE COST AVERAGING
By investing through SIP, you end up buying more
units when the price is low and fewer units when
the price is high. However, over a period of time
these market fluctuations are generally averaged.
And the average cost of your investment is often
reduced.
Graphical Presentation
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HASSLE FREE

• It is a hassle-free mode of investment since you
  can issue standing instructions for the regular
  transfers of money into your SIPs.
• SIPs inculcate the savings habit in investors.
• On a regular basis you put aside affordable sums
  of money and without realising it, over the long
  run you could amass great wealth

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EXAMPLE OF LUMPSUM vs. SIP
Performance of lump sum investment depends on the
price at which they are bought
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SIP Investors beat
equity MF peers in returns race

• Those who invested in mutual funds through the
  systematic investment plan (SIP) route benefited
  the most from fluctuating share prices over the
  past 2-3 years.
• Top equity diversified funds have returned 16-18
  in three years, SIP investors have earned returns
  in the range of 25-28 (investing into the same
  funds) during the same period.
• Supposing an investor has invested Rs 1,000 every
  month (between November 23, 2006 and November 23,
  2009), he would have pocketed a 31 return on his
  Sundaram BNP SMILE Fund, 29 on ICICI Prudential
  Discovery Fund and 28 on his HDFC Equity Fund.
  Sensex three-year return being 25 on a
  compounded basis
• Source Economic Times
• 
  

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• Thank you
• Happy Investing

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