HAVE YOU FOUND A SOLUTION FOR YOUR

FAMILY’S FINANCIAL GOALS?

ARE YOU SAVING ENOUGH?
 3

YOUR CURRENT INCOME MAY

NOT MATCH LIFE’S NEEDS

BIRTH &
RETIREMENT
EDUCATION

Marriage Child Car House Child’s Child’s

Education Marriage

Can you ignore planning and investing for your future?

 4

BASIC EXPENSES WILL KEEP GROWING OVER TIME

A Loaf of Bread 1 Liter Carton Milk 1 Liter Petrol

Year Amount Year Amount Year Amount

2000 INR 10 2000 INR 25 2000 INR 28
2012 INR 17 2012 INR 43 2012 INR 62
2020* INR 29 2020* INR 72 2020* INR 148
2030* INR 51 2030* INR 128 2030* INR 257

Assuming Inflation @ 6% for years 2020 and 2030

Are your investments growing adequately to meet your future needs?

 5

YESTERDAY’S LUXURIES ARE TODAY’S NECESSITIES

ITEMS 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

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

Is your investment working hard enough for you?
 6

YOUR FUTURE NEEDS

Mandatory expenses that make a demand on your household’s 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?
 7

WE ALL HAVE DREAMS FOR OUR FAMILIES

Childs’ Marriage Children’s Education

Vacation

Retirement Buy a house

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

FAILING TO PLAN IS
PLANNING TO FAIL
 9

THREE FACETS OF THE INVESTMENT DECISION

WHERE Invest in a mix of assets that provide

YOU
INVEST?
income and growth

HOW Invest in a diversified portfolio that is

DO YOU managed professionally
INVEST?

WHEN
DO YOU Invest systematically with discipline and
INVEST? 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

real estate equity commodities

gold short term debt
long term debt
international assets art
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?
Don’t 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?
Don’t 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

SITA,
AGE 40
1,00,000 p.a. Retirement
INR 70.4 lac
corpus at age
60 assuming a
return of 10%
on their
investments

GEETA,
AGE 30

1,00,000 p.a. 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 If you invested INR At the end of 50 years at a

compounding means 100 and it grew at a simple interest of 8% you would
that your money rate of have INR 500 (INR 8 every yr. x
multiplies over time 50 yrs. = INR 400 as interest + INR
8% per year
100 as return of principal)

5000
4690
4500
4000
3500
But at a compounded 3000
rate of 8%, your money 2500
will be worth INR 4,690 2000

after 50 years 1500

1000 500
500
0
5 10 15 20 25 30 35 40 45 50

Einstein called compounding the eighth wonder.

Allow your savings the time to grow
 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?

RETIREMENT CHILD’S FUTURE WEALTH BUILDER

A unique investment
solution that helps
you plan for your life
goals
THE NEW PARADIGM 25

KEY ELEMENTS OF FAMILY SOLUTIONS

PLANNER & APPLICATION ACCOUNT GOAL

GOAL SHEET FORM STATEMENT TRACKER
THE NEW PARADIGM 26

HOW DOES IT WORK?

1 4
Create a customized Review and track
plan using the Family progress of your
Solutions Planner goals through your
advisor

2 3
Submit filled up Receive a Welcome
Family Solutions Letter and customized
form and Goal Family Solutions
Sheet to us Account Statement
KEY ELEMENTS: PLANNER AND GOAL SHEET 27

FAMILY SOLUTIONS PLANNER AND GOAL SHEET

Planner is available both on our website and with your

advisor

INPUT Goal details, target amount, timeframe, inflation

and returns expectations (that determines portfolio style)

OUTPUT Amount to invest annually / monthly / one-time to

reach the goals & FT funds allocation

“Goal Sheet” needs to be submitted with the application

form
KEY ELEMENTS: PLANNER AND GOAL SHEET 28

WELCOME SCREEN
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 33

GOAL SHEET
(OUTPUT)

The Goal Sheet is a summary

of your goals and the
recommended plan
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 Option of Single Cheque

schemes across multiple goals 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 INVEST
TO
• You fill up a single form for all your
YOU
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.