Systematic Investment Plan

Investing for the long run

Making Money in
Bear and Bull Markets
 Is it the right time to invest ?

I want to participate in the equity market but 
am scared of loosing money

Are equities a risky proposition?

Markets are falling ?
Eq ui ti es -less ri sky in the
long run
300%
264%

250%

200%

150%

100% 82%
53%
43%
35%
50% 13% 24% 14% 20%
-2% -2%
0%
-5%
-15%
-50%
-47%

-100%
1 year 3 year 5 year 7 year 10 year 15 year 20 year

Min Max

BSE Senses Rolling returns (Yearly basis) from march 1979 to March 2005
Mutual Funds
- A better route to investing in equities
60

50
  A Mutual Fund acts like a 
40
professional Fund Manager
Returns (%)

30  Mutual funds invest your 
20 money in markets and pass 
10
the returns to you
0  Mutual Funds charge a fee 
1 Years 3 Years 5 Years 10 Years

BSE Sensex Average of Diversified Equity Funds which is declared in the 

Point to Point Returns as on 21­06­2005. The average of diversified equity 
offer document
funds  includes 13 funds which have been in  existence for 10 years

 Mutual Funds have delivered higher returns over the sensex historically 
 Leave your investments in the hands of professionals you can trust
Be nefits o f SI P
Lower risk
and better
Investment in
returns
small
amounts
instead of
bulk investing
Benefit of
rupee cost
averaging Saves from the
Instills botheration of timing
discipline the market
in
investing
Buy low …..Sell High
14000.00

12000.00 Buy
10000.00

8000.00

6000.00

4000.00

2000.00

0.00
M-90
M-91
M-92
M-93
M-94
M-95
M-96
M-97
M-98
M-99
M-00
M-01
M-02
M-03
M-04
M-05
M-06
….SIP allows you to do it
 Rupee Cost Averaging
 Takes the guesswork out of “timing” the market

 Involves investing a set amount of money at regular

intervals over a long period of time

 You automatically buy more units when prices are

lower and fewer units when prices are higher

 Over time you pay lower average cost per unit

You automatically Buy

Fewer Units when the (NAV) is high
More Units when the (NAV ) is low
 Rupee cost averaging at work
25 1000

Units 900

20 NAV Sensex 800

Avg NAV 700

15 600
SIP Keeps 
costs Down 500

10 400

300

5 200

100

0 0
J-00

A-00

J-00

O-00

J-01

A-01

J-01

O-01

J-02

A-02

J-02

O-02

J-03

A-03

J-03

O-03

J-04

A-04

J-04

O-04

J-05

A-05

J-05

O-05

J-06

A-06
By investing in SIP the average cost is low and remains low v/s NAV

………risk associated with markets are reduced
 SIP out Performs Lump sum
250000

SIP Inv 218559

SIP Value
200000 SIP Value
Lumpsum How SIP works
177500

150000
in Bear Markets Lumpsum
Value

100000
Lumpsum investment
77000
Max Loss

50000
39829
Max SIP Loss

0
Jan-01
Jan-00

Jul-00

Jul-01

Jul-02

Jul-03

Jan-06
Jan-05
Jan-04

Jul-04

Jul-05

Apr-06
Jan-02

Jan-03
Apr-01

Apr-02

Apr-03

Apr-04

Apr-05
Apr-00

Oct-05
Oct-04
Oct-03
Oct-00

Oct-01

Oct-02
 Beneficial use of Volatility

200%

150% Sensex volatitlty

SIP Volatility
100%

50%

0%
A-00

A-01

A-02

A-05
A-03

A-04

A-06
O-00

O-01

O-02

O-03

O-04

O-05
J-00

J-00

J-01

J-01

J-02

J-02

J-05

J-06
J-03

J-03

J-04

J-04

J-05
-50%

-100%

SIP has falls less on the way down and 
out performs on the way up
Bet ter retur ns th rough
SI P
SIP Returns 32.75%
Lumpsum Returns 26.11%
Returns on annualized basis

34.00%
32.00%
30.00%
28.00%
26.00%
24.00%
22.00%
20.00%
SIP Returns Lumpsum Returns

Even with volatile markets SIP out performs 
 Systematic Investment Plan
–
Investing made easy
 Minimum SIP installment of Rs. 1000
 Min Tenure 6 months Maximum tenure to
perpetuity
 Auto Debit Facility : start with only 1 cheque
and the remaining will be debited from the
account though ECS debit
 Your account automatically gets credited with
proportionate units every month.
 You receive an updated statement every
quarter.
Invest Systematically – Do not time the market…

" In The Short Run The Market Is A Voting

Machine
In The Long Run It Is A Weighing
Machine."
-Benjamin Graham.

Mutual Fund investments are subject to market risks.

For risk factors, please read the offer document carefully before investing.