HAVE YOU FOUND A SOLUTION FOR YOUR

FAMILYS FINANCIAL GOALS?

ARE YOU SAVING ENOUGH?

YOUR CURRENT INCOME MAY

NOT MATCH LIFES NEEDS

BIRTH &
EDUCATION

RETIREMENT

Marriage

Child

Car

House

Childs
Education

Can you ignore planning and investing for your future?

Childs
Marriage

BASIC EXPENSES WILL KEEP GROWING OVER TIME

Assuming Inflation @ 6% for years 2020 and 2030

Are your investments growing adequately to meet your future needs?

YESTERDAYS LUXURIES ARE TODAYS NECESSITIES

1991

TODAY

Cable TV / Dish

No

Yes

LCD TV

No

Yes

Mobile

No

Yes

Washing Machine / Microwave

No

Yes

Branded Watches / Clothes

No

Yes

Bike / Car / Second Car

No

Yes

Home Theatre System

No

Yes

ITEMS

Your ability to save falls due to higher demands on your income.

Is your investment working hard enough for you?

YOUR FUTURE NEEDS

Mandatory expenses that make a demand on your households income
are growing from changes in lifestyle and inflation

You need a plan to ensure that you save for the future and you put your
savings to work, to meet those future goals

Do you have a plan to meet large

expenses of the future?
Are you saving enough with a
specific purpose or goal in mind?
Is your savings working hard enough
to meet those goals?

WE ALL HAVE DREAMS FOR OUR FAMILIES

But the big challenge is how do we achieve these goals?

FAILING TO PLAN IS
PLANNING TO FAIL

THREE FACETS OF THE INVESTMENT DECISION

WHERE
YOU
INVEST?

HOW

DO YOU
INVEST?

WHEN

DO YOU
INVEST?

Invest in a mix of assets that provide

income and growth

Invest in a diversified portfolio that is

managed professionally

Invest systematically with discipline and

patience

Mutual Funds can offer a one-stop solution for all the three
questions

10

WHERE TO INVEST?
Spread your risks: Diversify by asset class

equity commodities
gold short term debt
long term debt
international assets
art

real estate

Each one comes with its return, risk and time horizon:
Equity offers better long term return, but higher short term volatility
Debt offers steady income but limited long term appreciation

Your investments have to be tuned by allocating carefully

across different types of assets

A diversified portfolio across asset classes can works best

11

WHERE TO INVEST?
Winners Rotate: Diversify by geography

No country will always be the best performer year-after-year

A diversified portfolio across geographies can work best

12

HOW TO INVEST?
Dont let the cycle of market emotions rule you

Bull markets are born on pessimism, grow on skepticism, mature on

optimism and die on euphoria Sir John Templeton

13

HOW TO INVEST?
Dont let the cycle of market noise rule you

A diversified portfolio works best for investors

14

HOW TO INVEST?
A professional investment manager
is better equipped to take care of your investments!

15

WHEN TO INVEST?
It is tough to time the market

Perfect market timing requires:

the right exit point and the right re-entry point
Getting even one of these wrong can affect returns

Mathematically, the odds are heavily against

perfectly timing the market

Timing can be harmful to your investment

16

YOU MAY BE BETTER OFF STAYING PUT

Consider the BSE Sensex
For the 15 year period ended February 29 2012 if you had:
Stayed fully invested, your returns would be

11.12%

Missed the 10 best days, your returns would be

5.20%

Missed the 20 best days, your returns would be

1.23%

Missed the 30 best days, your returns would be

-2.22%

Example of some best days:

18 May 2009 (17.34%): UPA Victory in 15th general elections
15 June 2006 (6.89%): Impact of rebound in global equity markets following strong US and Global data
01 March 1999 (8.97%): Impact of budget by the Finance Minister Yashwant Sinha

The example given above is purely hypothetical and illustrative only since one cannot invest directly in the BSE Sensex

TWO CRITICAL FACTORS TO SUCCESSFUL

FINANCIAL PLANNING

18

START EARLY

The earlier you start

investing, the more
time you give your
money to grow

The earlier you start, the lesser you need to save

Time is your friend when it comes to investing

19

STARTING EARLY CAN MAKE A

DIFFERENCE TO YOUR WEALTH

Retirement
corpus at age
60 assuming a
return of 10%
on their
investments

INR 70.4 lac

INR 2.0 crore

20

THE MORE THE DELAY,

THE MORE THE NEED TO MAKE UP

21

ALLOW TIME TO WORK FOR YOU

The magic of
compounding means
that your money
multiplies over time

At the end of 50 years at a

simple interest of 8% you would
have INR 500 (INR 8 every yr. x

If you invested INR

100 and it grew at a
rate of
8% per year

50 yrs. = INR 400 as interest + INR

100 as return of principal)

5000

4690

4500
4000

But at a compounded
rate of 8%, your money
will be worth INR 4,690
after 50 years

3500
3000
2500
2000
1500
500

1000
500
0

10

15

20

Einstein called compounding the eighth wonder.

Allow your savings the time to grow

25

30

35

40

45

50

22

MANTRAS FOR SUCCESS

Understand the need to save for goals

PLAN BETTER FOR YOUR

FUTURE

Set the time frame to save

Determine goal value and
saving target
Monitor the progress
Motivate yourself to keep at it

You need a one-point solution that enables you to

define, plan and reach your goals

23

Presenting

THE NEW PARADIGM

24

WHAT IS FAMILY SOLUTIONS?

A unique investment
solution that helps
you plan for your life
goals

THE NEW PARADIGM

25

KEY ELEMENTS OF FAMILY SOLUTIONS

PLANNER &
GOAL SHEET

APPLICATION
FORM

ACCOUNT
STATEMENT

GOAL
TRACKER

THE NEW PARADIGM

26

HOW DOES IT WORK?

4

Review and track

progress of your
goals through your
advisor

Create a customized
plan using the Family
Solutions Planner

2
Submit filled up
Family Solutions
form and Goal
Sheet to us

Receive a Welcome
Letter and customized
Family Solutions
Account Statement

KEY ELEMENTS: PLANNER AND GOAL SHEET

FAMILY SOLUTIONS PLANNER AND GOAL SHEET

Planner is available both on our website and with your

advisor
INPUT

OUTPUT

Goal details, target amount, timeframe, inflation

and returns expectations (that determines portfolio style)
Amount to invest annually / monthly / one-time to
reach the goals & FT funds allocation

Goal Sheet needs to be submitted with the application

form

27

KEY ELEMENTS: PLANNER AND GOAL SHEET

WELCOME SCREEN

28

KEY ELEMENTS: PLANNER AND GOAL SHEET

29

INPUT SCREENS

Basic details are captured

Choose to plan for either one

or all of the three goals

KEY ELEMENTS: PLANNER AND GOAL SHEET

30

Goal wise details entered basis

your objectives / needs and
expectations

KEY ELEMENTS: PLANNER AND GOAL SHEET

31

GOAL DETAILS
Goal wise output on how much
to invest and which funds to
invest in

KEY ELEMENTS: PLANNER AND GOAL SHEET

32

GOAL SUMMARY SHEET

View Goal Sheet to get your

customized plan

Option to add more goals

KEY ELEMENTS: PLANNER AND GOAL SHEET

GOAL SHEET
(OUTPUT)

The Goal Sheet is a summary

of your goals and the
recommended plan

33

KEY ELEMENTS: PLANNER AND GOAL SHEET

Details of individual goals

summarized on the Goal Sheet

Details of amounts to be
invested for the goal are
highlighted

Recommended Funds for each

of the goals are also shown

KEY ELEMENTS: APPLICATION FORM

35

APPLICATION FORM
Facility of multiple goals in one form
Convenience of single cheque across multiple funds / goals in a form
Flexibility of investing lump-sum (regular), SIP or combination of
both

Flexibility for existing FT investors to move into Family Solutions with

current investments

Transaction rules on load, minimum application amount, etc. same as

that at the underlying scheme level

SIP ECS form for multiple goals / schemes in each form

KEY ELEMENTS: APPLICATION FORM

36

APPLICATION FORM

Single table for multiple

schemes across multiple goals

Option of Single Cheque

across all funds (if lump-sum)

KEY ELEMENTS: APPLICATION FORM

37

SIP ECS FORM

Single ECS form for upto 4

schemes

KEY ELEMENTS: ACCOUNT STATEMENT

38

ACCOUNT STATEMENT
Family Solutions details will be shown at a goal level
Funds are segmented Goal
wise as per your specific goals

Current value of the goal

is available

THE NEW PARADIGM

39

TO PLAN
Planner helps plan for life goals in simple,
organized and customized way

Saves the trouble of choosing from 100s

of funds with varied objectives

BENEFITS
TO
YOU

TO INVEST
You fill up a single form for all your
goals and pay through a single
cheque

TO MONITOR
Customized account statement gives details
of goals, schemes invested in and the value
of the investments
Track the progress of your goals through your
advisor anytime you wish

ARE YOU READY FOR THE NEW PARADIGM?

PRESENTING FAMILY SOLUTIONS

41

RISK FACTORS
Disclaimer: Setting up the goals, planning of investment and taking informed investment decision might
require professional expert advice. You are advised to consult your advisor prior to arriving at the
investment decision. There is no assurance or guarantee that the goals planned for will be achieved and
the same is subject to the investment performance of the schemes. Past performance of the schemes is
neither an indicator nor a guarantee of future performance, and may not be considered as the basis for
future investment decisions. The recommendation given above is based on the inputs provided by you
regarding your anticipated rate of returns and rate of inflation, the investment goals including the target
amount and investment horizon.
Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related
documents carefully. The NAVs of the schemes may go up or down depending upon the factors and
forces affecting the securities market including the fluctuations in the interest rates and there can be no
assurance that the schemes investment objectives will be achieved. The past performance of the mutual
funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future
performance of the schemes. The names of the schemes do not in any manner indicate the quality of the
schemes, their future prospects or returns. The Mutual Fund is not guaranteeing or assuring any dividend
under any of the schemes and the same is subject to the availability and adequacy of distributable surplus
and the investment performance of the schemes. The investments made by the schemes are subject to
external risks. Subscription in tax saving schemes are subject to lock-in period specified in the respective
scheme information document and the investor cannot redeem, transfer, assign or pledge the units during
the lock-in period.