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THERE ARE IMPORTANT FINANCIAL GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPS


GAP
GAP
CHILDS
MARRIAGE
Good plans shape good decisions. That's why good
planning helps to make elusive dreams come true.
Geofrey Fisher
YOUR OWN
RETIREMENT
To enjoy a long,
comfortable retirement, save more today.
Suze Orman
CHILDS
HIGHER EDUCATION
The one thing we can do is invest in the quality
of education, especially higher education.
Ron Kind
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
Dear Investors,
NJ GAP is an idea to help you achieve your long-term goals at
the right time by investing systematically in the right avenues
through Systematic Investment Plan (SIP). NJ GAP helps you
direct your savings to meet the goals, obligations & dreams
like buying a house, higher education, marriage, retirement,
luxury etc. and enjoy life. We believe that with proper
planning, right approach and disciplined behaviour anything
is possible to achieve in life.
Wishing you all the best.
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
Presenting
INFLATION
THE BIGGEST HURDLE IN YOUR FINANCIAL GOALS ACHIEVEMENT
As per RBI estimates WPI infation has grown by 6.8% in the last 30 years
Reduced value of money @ 8% infation p.a.
R1,00,000/-
1995
2003
2013
R65,908/-
R33,825/-
R14,693/-
1990
How Infation is eating your Money
3200
5600
29663
10.2%
9.84
32.49
75.80
9.3%
4.08
21.21
56.80
12.1%
6.00
13.00
38.00
8.4%
1990
2003
2013
Actual Inflation
GOLD PETROL DIESEL MILK
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
INFLATION
RETIREMENT
CHILDS
HIGHER
EDUCATION
2005 2013 2025* 2005
R15,000/- R25,000/- R60,000/-
2013 2025*
HIGHER EDUCATION HOUSE HOLD EXPENSE
R3.16 lacs R14.45 lacs R36 lacs
*Cost in the year 2025 assumed at 8% infation p.a. on 2013 prices
CHILDS
MARRIAGE
PLANNING
2005
R4-5 LACS R10-12 LACS R25-30 LACS
2013 2025*
MARRIAGE COST
Fees of PGDBM in IIM - Ahmedabad
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
ACHIEVING GOALS
THE RIGHT WAY TO CREATE LONG-TERM WEALTH?
Buying potential BIG WINNING STOCKS?
Successfully TIMING MARKETS
Following EXPERT recommendations
Saving a LOT OF MONEY
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
INVEST IN RIGHT ASSET CLASS
THE RIGHT WAY
SIMPLE , SMART & TIME TESTED FORMULA TO ACHIEVE GOALS
START EARLY
SAVE REGULARLY
GOAL ACHIEVEMENT
=
+
+
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
START EARLY
GIVE TIME TO YOUR INVESTMENT RATHER THAN TIMING AND BENEFIT
FROM THE POWER OF COMPOUNDING
MR SAXENA MR GUPTA
SAVING STARTING AGE 25 YEARS
MONTHLY SAVINGS R 5,000/-
SAVING TILL AGE 60YRS 35 YEARS
TOTAL AMOUNT SAVED R 21 LACS
WEALTH AT AGE 60 YRS R 5.70 CRORES
45 YEARS
R 15,000/-
15 YEARS
R 27 LACS
R 0.92 CRORES
0.92 CRORES
5.70 CRORES
25 YEARS 60 YEARS 45 YEARS
Systematic investing has a compounding efect on your investments. In the long term, an investment as low as R 5000/- per month swells
up into a huge corpus. This can be best explained by the following graph. The graph shows advantages of starting early. If an investor
starts early, even with lower invested amount he can create a large corpus.
The above example is merely an illustration to explain the beneft saving at an early age. Returns are assumed at 15% CAGR. Assumed that SIP investment are done regularly
every month. No guarantee or assurance of return is being ofered by any mutual fund or NJ. The actual result may vary from depicted results depending on scheme selected.
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
RIGHT ASSET CLASS
EQUITY MARKET HAS OUTPERFORMED ALL OTHER INVESTMENT AVENUES
It is evident from the graph that in the long term, equity investments have
outperformed other investment avenues and has beaten infation by a huge margin.
Growth in Diferent Asset Classes from 1981-2013
Source: Gold-Handbook of Statistics on Indian Economy, RBI. Silver - Handbook of Statistics on Indian Economy, RBI. Sensex - www.bseindia.com, Slide of PPT of HDFC MF.
Co Deposits - assumed (1% higher than Bank FD Rate). Bank Deposits - Handbook of Statistics on Indian Economy, RBI. Infation - Handbook of Statistics on Indian Economy, RBI
Equity mutual funds over a long-term
horizon ofer better risk-return pay of
Liquidity, Transparency and Convenience
+
15.5
9.8
8.8
10.3
3.2
9.6
2.6
6.8
INFLATION GOLD SILVER BANK DEPOSITS CO. DEPOSITS SENSEX
2.8
1.8
8.1
18
16
14
12
10
8
6
4
2
0
Actual Gain Real Gain
86,518
7,780
17,167
20,863
18,350
13,534
INFLATION GOLD SILVER CO. DEPOSITS BANK DEPOSITS SENSEX
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Growth of Rs. 1,000 in Diferent Asset Classes
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
INVEST REGULARLY
DISCIPLINED INVESTING THROUGH SYSTEMATIC INVESTMENT PLAN (SIPS)
Every investor dreams of buying at
a low price and selling at a higher
price. But, how does one know
whether any given time is the right
time to buy or sell? Many retail
investors try to judge the market
movements and end - up losing
their money in the long term.
A more successful strategy is Rupee
Cost Averaging wherein you invest
a fxed amount regularly. Thus you
purchase more when the price are
low and purchase less when prices
are high. SIP investments takes
advantage of this strategy.
SYSTEMATIC INVESTMENT PLAN (SIP) AN IDEAL WAY TO REDUCE RISK
AVERAGE COST PER UNIT < AVERAGE PURCHASE PRICE PER UNIT
1000
1000
1000
1000
100.00
125.00
111.11
90.91
4000
0
0
0
400
0
0
0
400
4400 @ NAV R11
10
427.02
4697.22 @ NAV R11
9.36
1
2
3
4
10
8
9
11
The above example is merely an illustration of Rupee Cost Averaging. The NAVs and returns generated are
purely indicative and do not depict the performance of any mutual fund scheme. The actual results may vary
from the depicted figures. No guarantee or assurance of return is being offered by the Mutual Fund or NJ.
(R) (R)
(R)
(R)
Rising Market
Market Unit Purchased
Falling Market
Unit Purchased Market
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
SENSEX RETURNS
EQUITY NOT RISKY IN LONG TERM
266.88
-46.78
25.02
34
22
12
35.29
81.76
-15.21
18.42
32
26
6
18.75
53.04
-4.77
17.48
30
27
3
10.00
34.71
-2.09
17.20
25
24
1
4.00
33.94
2.24
16.64
23
23
0
0.00
27.40
6.49
15.81
20
20
0
0.00
Past Performance may or may not sustain in future. The scenarios depicted herein above is for illustration
purpose only and do not represent any forecasted performance. The above data shows returns for
investments done in sensex every year on 31st March starting from 1979 till the year 2013 and is based on
data available on www.bseindia.com which depicts performance of BSE sensex over a period of time. It
shall not be construed to be indicative of scheme performance in any manner.
Reducing probability of loss with increased investment tenure
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
Best market timing (almost impossible) has yielded less than 2% additional return than
systematic investment. Time to go systematic.
TIME IS IMPORTANT
MARKET TIMING DOES NOT MATTER OVER THE LONG TERM
INVESTING IN THE BSE SENSEX - 26 YEARS
Period from Jan 1988 to December 2013
11.85%
14.65%
13.33%
Data source: www.bseindia.com; capitalmarket
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
SENSEX RETURNS
SENSEX HAS DELIVERED THESE RETURNS INSPITE OF
Two Wars
Major fnancial scandals
Assassination of 2 Prime Ministers
At least 3 recessionary periods
10 diferent governments
An unfair share of naturals disasters
Global crisis like Dot Com bubble of
2000 and Sub Prime crisis of 2008
YEAR SENSEX INVESTMENT
1979 100 R1,00,000
2013 21,171 R2,11,71,000
*As on 31 Dec 2013
IN PAST 35 YEARS BSE SENSEX HAS GIVEN 16.65% RETURNS
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
POWER OF COMPOUNDING
Albert Einstein once noted that the most
powerful force in the universe was the
principle of compounding. In investing, this
manifests itself through something called
compound interest. Put in its simplest terms,
the phrase compound interest means that
you begin to earn interest income on your
interest income, resulting in your money
growing at an ever-accelerating rate.
DO YOU KNOW?
At the Rate of 15% Compounding
what will be the value of
Give maximum TIME to your investment
to get most of POWER OF COMPOUNDING
R 1/-
R 2/-
After 5 years
R 4/-
After 10 years
R 8/-
After 15 years
R 64/-
After 30 years
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
SYSTEMATIC
INVESTMENT PLAN (SIP)
Systematic Investment Plan (SIP) is a tool that allows you to invest in mutual funds through small,
periodic installments.
SIPs help you set aside a fxed amount every month for investments thus contributing towards your
goals. For Investment purpose, we often wait to collect a large amount of money and investment it
all at once. Through SIP you can start with smaller amount on a monthly basis and create wealth
over the long term.
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
There are 27 equity funds, which have completed 15 years, the average SIP return of 27 diversified equity funds
is 19.34% over last 15 years. So someone who had started with SIP of R10,000 in January 1999, has
accumulated R90.14 lacs as on 31st December 2013 (on an investment of R18 lacs over the 15 year period).
SIP PERFORMANCE
EQUITY NOT RISKY IN LONG TERM
PERFORMANCE OF SIP IN DIVERSIFIED EQUITY MF SCHEMES
CAGR (%) Category
19.34%
13.72%
Avg of MF Schemes
Sensex
15 yrs Performance Returns on R10,000 invested per month
Current Value (R)
90,13,807
55,17,022
(Total number of schemes covered : 27, Returns as on 31 Dec. 2013
SIP Amount of R10,000 per month. Total investment R18 Lacs)
INVESTED R 1 L
SIP R10,000/- PER MONTH
R .1 L
CURRENT VALUE
*Returns as on 31 Dec. 2013. For Schemes with dividend option, dividend reinvestment has been considered on the
date of dividend. Investment assumed to be done on 10th of every month. Source: Internal
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
There are 4 balance funds, which have completed 15 years, the average SIP return 13.85% over last 15 years. So
someone who had started with SIP of R10,000 in January 1999, has accumulated R55.79 lacs as on 31st
December 2013 (on an investment of R18 lacs over the 15 year period).
SIP PERFORMANCE
PERFORMANCE OF SIP IN BALANCE FUND MF SCHEMES
CAGR (%) Category
13.85%
13.72%
Avg of BALANCE Schemes
Sensex
15 yrs Performance Returns on R10,000 invested per month
Current Value (R)
55,79,293
55,17,022
(Total number of Balance fund scheme covered 4, Returns as on 31st
December 2013. SIP Amount of R10,000 per month. Total investment
R18 Lacs)
INVESTED R 1 L
SIP R10,000/- PER MONTH
R . L
CURRENT VALUE
*Returns as on 31st December 2013. For Schemes with dividend option, dividend reinvestment has been considered
on the date of dividend. Investment assumed to be done on 10th of every month. Source: Internal
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
NJ GAP is a unique goal based investment programme through a
Systematic Investment Plan (SIP). Investors in this programme have
the flexibility of choosing a monthly investment amount as well as
the investment duration of their choice. NJ GAP would enable the
investors to plan for their goals without needing to review,
re-invest or for that matter time the markets.
With NJ GAP you can plan to fulfill all your desires in life.
REAP THE BENEFIT OF COMPOUNDING THROUGH SIP
WHY NJ GAP
WITH NJ GAP YOU CAN PLAN TO FULFIL YOUR GOALS IN LIFE
GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPS
GAP
GAP
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
NJ GAP FEATURES
Monthly Investment Option
2000 5000 10000
15000 20000
NJ GAP OFFERS INVESTORS WITH GREAT ADVANTAGES
INVESTMENTS IN THE RIGHT ASSET CLASS
With NJ GAP, you would invest in Equities, an asset
class with potential to deliver very attractive
returns in the long run
TAX FREE RETURNS
Long term capital gains in Mutual Funds for
investments above one year are nil. So, all returns
made through NJ GAP are TAX FREE (1 year & above
investment only).
INVESTMENTS ARE HIGHLY LIQUID
There is no lock-in* period of any kind and
investments can be very easily redeemed at any
time wish.
CONVENIENCE
You only have to fll the NJ GAP application form
and the Auto Debit (ECS) form and submit it with
one cheque.
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
GOAL ACHIEVEMENT PROGRAMME THROUGHMF SIPS
GAP GAP
SIP READY RECKONER
SIP FOR LONG TERM CAN GIVE YOU THE MAXIMUM RETURN
The above SIP Ready Reckoner is for illustration purpose only. The SIP amount, tenure of SIP, expected rate of return are assumed fgures
for the purpose of explaining the concept of advantages of SIP investments. The actual result may vary from depicted results depending
on scheme selected. It should not be construed to be indicative of scheme performance in any manner.