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Understanding SIP, STP, SWP

Case Study

SIPSIPs are similar to recurring bank deposits wherein investors contribute a fixed sum of money at regular intervals. The biggest advantage of SIP is that it negates

he need to time the market and helps market volatility to work in favour of an investor. SIPs average out the purchase cost (referred to as rupee cost averaging) by

buying more units when prices are low and less units when prices are high. It is, however, important that investors continue SIP investments in a bear phase (when SIP

are typically stopped) so as to maximise returns.

STPThis plan allows investors to systematically transfer a fixed amount from one scheme to another at regular intervals. STP can be effectively used as a tool tomitigate risks by systematically changing asset allocation by transferring from one asset class to another. For example, STP is useful when one receives lump sum

benefits such as from sale of property, annual bonus or ancestral inheritance. Typically, such windfalls must not be parked in volatile asset classes as a lump sum bu

must be invested progressively over longer periods of time. Such amounts can be parked in a liquid fund and transferred by STP into an equity fund. Inversely, one ca

ock gains from equity funds by transferring to short-term debt funds where the returns are less volatile. This is typically done when goal amount is achieved before time

One can choose between two variants of STPs: (1) fixed plan - investors can transfer specific amount to target funds on a monthly, quarterly, half-yearly or yearly basis

2) appreciation plantransfer only the appreciation amount on the investment, which will vary based on the amount of appreciation, and keep the capital intact.

SWPThis plan allows investors to redeem a fixed amount of their investments from mutual funds on a pre-determined frequency. The amount withdrawn can be used

o meet planned and unplanned expenses as well as to re-invest according to an individual's life stage / asset allocation plan. Like STPs, SWPs also have a fixed and

appreciation withdrawal plan. Investors can customise the outflows as per their requirement.

The following case study shows how an investo

can strategically use SIP, STP and SWP features

to build a sizeable retirement corpus.

A 25-year-old investor starts a SIP of Rs 10,000 t

build a sizeable retirement corpus so that he can

maintain his lifestyle post retirement. His curren

monthly expenses are Rs 50,000. This would

increase to approximately Rs 3 lakh per month a

retirement (60 years) assuming a 5% annua

inflation rate. The case study looks at two

scenarios one uses all three strategies while th

other only uses only SIP and not STP and SWP.

Case I Investor uses SIP in the accumulation

phase, STP in the consolidation phase and SWP in

the distribution phase. SWP would give him Rs 3

lakh every month.

Case II Investor uses only SIP in the

accumulation and consolidation phases but no

STP. He liquidates all equity investments in the

consolidation phase to park lump sum amount in

debt mutual funds. During the retirement

distribution phase, he does not use SWP, bu

redeems all his investments from debt mutua

funds and parks the amount in bank fixed deposit

(1-year FD rolled over annually) while keeping

aside his annual requirement of Rs 36,00,000 in

a savings account to enable withdrawal of

Rs 3 lakh every month for his regular

needs.

Phase Time span* Particulars Age Value of investment^

Accumulation

(SIP)

Distribution(SWP)

Consolidation(STP)

Investor starts monthly SIP of Rs 10,000 intop performing equity mutual funds based on

CRISIL Mutual Fund Rankings

Withdraws Rs 3 lakh monthly from debtmutual funds using SWP

45

75

60

Rs 92 lakh

Rs 60 lakhs

Rs 3.31 cr

Rs 31 lakhs

Rs 3.62 cr

25-45

61-75

46-60

Systematically transfers Rs 1 lakh monthlyfrom equity MF to debt MF using STP

Additionally starts monthly SIP of Rs 10,000in top performing debt MF

Total

Case I - Investor strategically uses SIP/ STP/ SWP

Achieve investment goals using 'systematic' features of mutual funds'Systematic' seems to have become the most popular word in the mutual funds lexicon in recent times. It is common to three differen

means of investing in mutual funds - systematic investment plan (SIP), systematic transfer plan (STP) and systematic withdrawal plan(SWP). Though the first one is the most popular, a combination of all three plans can be strategically used over one's life cycle to mee

investment goals.

An investment life cycle can be split into accumulation, consolidation and distribution. Each cycle lasts about 15-20 years, assuming one

starts saving at the age of 25. Now map the three plans to the three cycles - SIPs are used to grow assets in the accumulation phase. STPs

which help in reducing portfolio risks, are useful in the consolidation phase where investor's risk appetite moderates and preservation of wealth is key. SWPs can be

sed in the distribution phase (stage of retirement as well as post retirement) where investors would derive regular income from the wealth already created.

Investmentthoughts

Monthly funds newsletter from CRISIL Research

CRISIL FUND INSIGHTS

Volume - 28 August 2013

Distribution

Accumulation

Consolidation

Liquidates debt mutual funds and parks thecorpus in bank fixed deposit rolled over

annually after keeping aside Rs 36 lakhs everyyear in a savings bank a/c. Investor withdraws

Rs 3 lakh every month from it.

Investor starts monthly SIP of Rs 10,000 in topperforming equity mutual funds

75

45

60

NIL (Investment valuegets over by the

Age of 71)

Rs 92 lakh

Rs 2.54 cr

Rs 31 lakh

Rs 2.85 cr

61-75

25-45

46-60

Liquidates equity mutual funds and invests

lump sum in debt mutual funds

Additionally starts monthly SIP of Rs 10,000 indebt MF

Total

Case II - Investor only uses SIP and not STP and SWP

Phase Time span* Particulars Age Value of investment^

* Age in years ; at the end of phase

Equity mutual fund returns assumed at 12% per annum

Debt mutual fund returns assumed at 7% per annum

Bank fixed deposit returns assumed at 7% per annum

Bank's savings a/c returns assumed at 4% per annum

Equity exposure is systematically reduced to zero and portfolio becomes 100% debt by the age of 60 via STP

Assumptions

Continued on page 4...

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-110000

-66000

-22000

22000

66000

110000

5.5

6.1

6.8

7.4

8.1

8.71. Banks

2. Computers - Software

3. Pharmaceuticals

4. Ref ineries/Market ing

5. Cigarettes

6. Housing F inance

7. Oil Exploration

8. Telecom - Services

9. Engineering

10. Cement

l Indian equity indices fell for the second consecutive month in July with key benchmark indices CNX Nifty andS&P BSE Sensex losing 1.72% and 0.26%, respectively.

l The Reserve Bank of India's (RBI's) measures to squeeze liquidity in the domestic financial system to curbvolatility in the rupee-US dollar exchange rate has negatively impacted the domestic market.

l Measures taken by the RBI include hiking the threshold rate for additional borrowing by banks by 200 bps to10.25%, reducing the borrowing limit from the central bank's temporary liquidity facility to 0.5% of their netdemand and time liabilities (NDTL), and directing banks to maintain a higher reserve with the central bank.

l The rupee closed at 60.40 to the US dollar in July is--vis 59.39 at the end of June.

l Other factors affecting the market were disappointing quarterly earnings from index majors such as Larsen &Toubro (L&T) and Hindustan Unilever (HUL).

l Selling by foreign institutional investors (FIIs) also dented market sentiments; FIIs sold equities worth Rs5,909 cr in July 2013, the second consecutive month of net selling vs net selling of Rs 10,530 cr in June, 2013

l Losses were capped following positive global cues after the US Federal Reserve chief Ben Bernankecommented that the nation's central bank will continue with a highly accommodative monetary policy for theforeseeable future.

l Sectoral indices ended mixed in July with CNX IT index emerging as the top gainer - rising 17.38% - due toencouraging earnings from Infosys and the rupee depreciation that aids the export-focused sector.

l CNX Bank index was the top loser, down almost 14% as RBI's measures may impact the sector's profitabilitydue to rise in cost of funds and higher yields leading to mark-to-market (MTM) losses in bond portfolios.

Indices July

31, 2013

June

28, 2013

Absolute

Change

%

Change

Indicators June 28, 2013

10 Yr Gsec 7.44%8.17%

Monthly WPI Inflation 5.79% (July 2013) 4.86% (June 2013)

Mutual Fund Overview

l The Indian mutual fund industry's month-end assets under management (AUM)fell by over 6% month on month to7.61 lakh cr, thus ending below the Rs 8 lakh crmark for the first time since March 2013.

l Industry assets declined primarily due to outflows of Rs 50,067 cr in July (mainlyfrom liquid funds) as against Rs 48,403 cr in the previous month.

l Liquid funds saw outflows of Rs 45,296 cr following large-scale redemption postRBI's liquidity-tightening measures.

l Besides liquid funds, income funds' assets fell by over 2% to Rs 4.32 lakh cr whilegilt funds' AUM fell by more tha 3% to Rs 8,203 cr due to rise in bond yields (yieldsand bond prices/ NAVs move in opposite directions). However, with inflows ofnearly Rs 96 cr in July (as against outflows of Rs 332 cr in the previous month), thegilt funds category was a rare gainer.

l Equity funds' AUM fell by 4.4% or Rs 7,500 cr to Rs 1.63 lakh in July led by outflowsof Rs 1,827 cr as well as MTM losses.

l Gold ETFs' AUM increased 11% to Rs 10,669 cr, the highest since October 2011,despite outflows of Rs 107 cr in July. The rise in AUM was due to MTM gain as theunderlying asset prices, represented by the CRISIL Gold Index, rose 12% in themonth tracking positive global trends.

July 31, 2013

1. Infosys Ltd.

2. ITC Ltd.

3. ICICI Bank Ltd.

4. Reliance Industries Ltd.

5. HDFC Bank Ltd.

6. HDFC Ltd.

7. Tata Consultancy Services Ltd.

8. Larsen & Toubro Ltd.

9 . Sta te Bank of Ind ia

10. Bharti Airtel Ltd.

Top Stock Exposures - July 2013 Top Sector Exposures - July 2013

New Stocks Entries and Exits in Mutual Fund Portfolios - July 2013

Entries

IL&FS Transportation Networks Ltd.

Future Market Networks Ltd.

Transtream India.com Ltd.DSQ Software Ltd.

Suncity Synthetics Ltd.

Siv Industries Ltd.

20 Microns Ltd.

Exits

Bharat Seats Ltd.

Century Plywood

Hinduja Global Solutions Ltd.

India Cements Capital Ltd.

Jindal Polyfilms Ltd

Jocil Limited

Liberty Phosphate Ltd.

Lloyd Electric & Engineering Ltd.

Parabolic Drugs Ltd.

SIP Technologies & Exports Ltd.

Sun T V Network Ltd.

Unity Infraprojects Ltd.

Zee Learn Ltd.

Note:- The month-end portfolios as of July 2013 have been considered for the report.

Market - Overview

CNX Nifty 5742 5842 -100 -1.72

S&P BSE Sensex 19346 19396 -50 -0.26

RISIL AMFI Large Cap Fund Performance Index -2.23 -3.06

RISIL AMFI Diversi fi ed Equity Fund Performance Index -4.49 -3.70

RISIL AMFI Small & Midcap Fund Performance Index -4.70 -4.40

RISIL AMFI ELSS Fund Performance Index -2.91 -3.21

RISIL AMFI Balance Fund Performance Index -4.43 -3.21

RISIL AMFI MIP Fund Performance Index -3.18 -1.38

RISIL AMFI Gilt Fund Performance Index -4.91 -1.28

RISIL AMFI Debt Fund Performance Index -2.51 -0.41

RISIL AMFI Short Term Debt Fund Performance Index -1.79 0.13

RISIL AMFI Ultra Short Fund Performance Index -0.07 0.63

RISIL AMFI Liquid Fund Performance Index 0.37 0.62

old Funds (ETFs and FoFs) 12.09 -7.19

Absolute Monthly Returns%Category returns Jul 2013 Jun 2013

l A study by CRISIL Research showed that direct plans constituted 25% of themutual fund industry's total average AUM for the quarter ended June against 15%in the previous quarter.

l On the regulatory front, the Securities and Exchange Board of India (SEBIreorganised its advisory committee on matters related to regulation anddevelopment of the mutual fund industry.

l RBI launched a special repo window to enable banks to meet the liquiditrequirement of exclusive mutual funds; the tenor of the special repo will be threedays (excluding the intervening Saturday and holidays), the rate applicable wouldbe 10.25% and the total allocation under the facility would be limited to Rs 25,00cr. This temporary facility will be available until further notice.

l The Association of Mutual Funds of India (AMFI) wrote to SEBI to consider raisingthe current borrowing limit for mutual funds from the existing 20% of assets undemanagement in individual schemes to 40%.

l AMFI, Financial Intermediaries Association of India (FIAI) and Financial PlanningStandards Board (FPSB) India filed applications with SEBI to become a selfregulatory organisation for distributors of mutual fund products.

CRISIL FUNDINSIGHTS

Jul-13

Jun-13

May-13

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

(NetFlowsRscr)

(AUMRslakhcr)

Net flows (Rs cr) Industry AUM (Rs lakh cr)

7/30/2019 Fund Insights August 2013

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6 months 1 Year 2 Years 3 Years 5 Years

UTI India Lifestyle Fund -2.77 8.06 6.49 5.89 10.32

Category -4.84 6.50 5.38 1.80 7.51

CNX 500 Index -6.99 3.50 2.85 -1.60 3.69

-10

-6

-2

2

6

10

14

Returns(%)

Chart 1: Performance as on August 13, 2013

Fund focus

Performance

UTI India Lifestyle FundLaunched in July 2007, UTI India Lifestyle Fund has been classified

as a large cap oriented equity fund under the CRISIL Mutual Fun

Ranking; the fund has been CRISIL Fund Rank 1 for two successive

quarters ended March and June 2013. The fund (earlier classified

as diversified equity fund) has been in the top 30 percentile (CRISIFund Rank 1 or CRISIL Fund Rank 2) since June 2011. The fund'

average assets under management (AUM) were Rs 330 cr for the

quarter ended June 2013.The fund intends to primarily invest in

sectors, and companies that are expected to benefit from changin

Indian demographics, lifestyle and rising consumption pattern.

The fund has outperformed both its benchmark (CNX 500 Index

and the large-cap oriented funds category (represented by CRISI

AMFI Large Cap Fund Performance Index) across one, two, thre

and five year time frames (Chart 1). Over the past five years, the

fund has given annualised return of 10.32% compared to 3.69% and

7.51% by its benchmark and the category, respectively.

verage Assets under Management - A Bird's Eye View

IDBI Mutual Fund 5489 6249 -760 -12.16

Principal Mutual Fund 4848 5573 -725 -13.01

Peerless Mutual Fund 4538 4875 -336 -6.90

Taurus Mutual Fund 4464 4731 -267 -5.65

Goldman Sachs Mutual Fund 4309 4800 -490 -10.22

BNP Paribas Mutual Fund 3841 3726 115 3.08

Indiabulls Mutual Fund 3219 2639 580 21.97

Morgan Stanley Mutual Fund 3022 2660 361 13.59

Pramerica Mutual Fund 2544 2592 -48 -1.86

Union KBC Mutual Fund 2477 3118 -641 -20.55

PineBridge Mutual Fund 1206 1099 107 9.75

ING Mutual Fund 891 993 -102 -10.26

BOI AXA Mutual Fund 866 1104 -238 -21.54

Mirae Asset Mutual Fund 524 540 -16 -3.00

Motilal Oswal Mutual Fund 491 539 -47 -8.76

Quantum Mutual Fund 292 280 12 4.22

Escorts Mutual Fund 268 255 13 5.01

Sahara Mutual Fund 244 254 -10 -3.76

Edelweiss Mutual Fund 239 259 -20 -7.62

IIFL Mutual Fund 214 210 5 2.18

Daiwa Mutual Fund 131 266 -135 -50.64

PPFAS Mutual Fund 114 NA NA NA

Grand Total 846677 816657 30019 3.68

Mutual Fund 104977 101720 3257 3.20

ce Mutual Fund 97771 94580 3191 3.37

Prudential Mutual Fund 91695 87835 3860 4.39

un Life Mutual Fund 79761 77046 2714 3.52

utual Fund 74707 69450 5256 7.57

utual Fund 59163 54905 4258 7.75

n Templeton Mutual Fund 41722 41564 158 0.38

Mutual Fund 38938 32886 6052 18.40

Mahindra Mutual Fund 37203 35361 1842 5.21

lackRock Mutual Fund 33041 32342 699 2.16

utual Fund 20883 19897 986 4.95

che Mutual Fund 18563 18114 449 2.48

ram Mutual Fund 15459 14871 588 3.95

gan Mutual Fund 14883 15856 -972 -6.13

re Invesco Mutual Fund 13811 14202 -391 -2.75

utual Fund 13781 11169 2612 23.39

utual Fund 12289 12114 175 1.44

a Robeco Mutual Fund 7193 8851 -1658 -18.73

a Pioneer Mutual Fund 7140 7303 -163 -2.23

omura Mutual Fund 6818 7185 -367 -5.10

ancial Mutual Fund 6755 7411 -656 -8.86

Mutual Fund 5891 5230 661 12.63

Fund Name

Apr-Jun2013

Apr-Jun2013

Jan-Mar2013

Jan-Mar2013Change

(Rs.Crore)%

Change Mutual Fund Name(Rs.Crore) (Rs.Crore)Change

(Rs.Crore)%

Change(Rs.Crore) (Rs.Crore)

A monthly investment of Rs 1,000 over five years under th

systematic investment plan (SIP) until July 31, 2013 would have

increased to Rs 79,525 (on a total investment of Rs 60,000) yieldin

an annualised growth rate of 11.43%. A similar investment in the

benchmark and large cap funds category would have increased t

Rs 67,912 and Rs 72,298 at an annualised growth rate of 4.99% an

7.43%, respectively.

Over the three-year period ended July 2013, the fund has invested

around 94% in equity and equity-related instruments. In line with th

theme, the fund has been overweight on consumer non-durables

finance and consumer durables compared to the benchmark and

the category. These sectors represented by the CNX FMCG Index

the CNX Finance Index and S&P BSE Consumer durables index

gave 27.77%, 1.02% and 5.75% annualised returns, respectively

compared to -0.72% of the CNX 500 index for a period of three yearended July 31, 2013.

The fund has a diversified portfolio at both the stock and secto

levels compared to the category. The fund has held an average 4

stocks compared to the category's 40 in the three-year period, while

on the sector front, the fund had an average exposure to 27 sectors

compared with category's 25 sectors.

Mr Lalit Nambiar is Senior Vice President and Fund Manage

(Equities) and has over 18 years of experience in equity researc

and fund management. His qualifications include MMS from

Sydenham Institute of Management and CFA (USA).

Every month, Fund Focus will feature one of theCRISIL Mutual Fund Rank 1 Schemes

Portfolio Strategy

Fund Managers' Profile

AAUM is the quarterly average number and excludes Fund of Funds

Data sorted on latest average AUM numbers

Note:1. Returns are annualised for periods greater than 1 year2. Category implies CRISIL ranked large-cap funds represented by CRISIL AMFI LargCap Fund Performance Index

Cap Equity

aribas Equity Fund 0.69 -1.11 -2.54 13.33 6.85 16.67 23-Sep-04 119.26 17.08 0.21

uity Fund -1.07 -2.51 -4.82 9.22 5.94 13.70 1-Aug-05 2269.26 17.49 0.13

ia Lifestyle Fund -1.35 -1.60 -2.64 11.52 6.75 5.26 30-Jul-07 329.92 17.35 0.20portunities Fund 0.13 -1.31 -3.51 9.67 7.41 15.00 20-Jul-05 3520.34 17.16 0.25

ified Equity

un Life India GenNext Fund -1.75 -2.34 -2.43 19.08 9.96 15.16 5-Aug-05 150.15 17.61 0.45

rudential Services Industries Fund 9.31 14.23 12.12 34.34 8.30 10.71 30-Nov-05 140.95 19.62 0.31

ce Equity Opportunities Fund -5.00 -9.96 -13.34 1.71 3.42 17.38 29-Mar-05 5005.71 18.31 -0.06

hical Fund - Plan A 1.15 3.47 0.30 17.00 5.84 13.34 21-Aug-96 103.22 14.81 0.12

NC Fund -1.03 -0.47 0.09 9.47 9.39 14.53 30-Jul-05 257.90 12.59 0.51

& Midcap

un Life MNC Fund -0.84 1.53 -0.58 11.57 8.73 15.45 27-Dec-99 382.36 13.38 0.42

gan India Smaller Companies Fund -4.23 -5.27 -9.97 7.15 1.38 -3.71 26-Dec-07 125.81 16.86 -0.26

merging Businesses Fund -5.28 -9.56 -16.89 3.97 8.50 20.08 8-Oct-04 1305.61 18.49 0.33

ong Term Equity Fund -1.24 -1.14 -0.27 14.23 7.96 11.26 29-Dec-09 589.69 17.28 0.30

aribas Tax Advantage Plan 0.34 -1.70 -5.47 11.12 5.51 6.51 5-Jan-06 123.11 16.56 0.09

an Sachs Nifty Exchange Traded Scheme -1.48 -2.29 -3.95 11.05 2.78 17.34 28-Dec-01 451.49 21.27 -0.07

ructure

ackRock India T.I.G.E.R. Fund -9.15 -14.84 -21.90 -8.86 -9.11 14.99 11-Jun-04 1208.17 21.11 -0.95

RISIL Fund Rank 1 Schemes - Equity

me Name1

Month3

Month6

Months1

Years

SinceInception

InceptionDate

Point to Point Returns %Average

AUM(Rs.Crore)

3Years

Mutual Funds' Performance Report

StyleBox

Std.Deviation

(%)SharpeRatio

ns are annualised for periods above 1-year, other wise actualised

Ratios are annualised

d for Risk Ratios is three years

harpe Ratio the risk free rate is 7.92% - the average 91-day T-Bill auction cut-off rate for three years

detailed write-up on the CRISIL Mutual Fund Ranking and the complete ranking list, please refer to www.crisil.com.

ge AUM is 3-months average number as disclosed by AMFI for the period April-June 2013

Large cap

Small & Midcap

Style Box LegendVa lue Blend Growth

Diversified

to Point Returns are as on July 31, 2013

L Mutual Fund Ranks as of June 2013

7/30/2019 Fund Insights August 2013

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ast updated: May, 2013

RISIL Research, a Division of CRISIL Limited has taken due care and caution in preparing this Report. Info rmation has been obtained by CRISIL from sources which it considers rel iable. However, CRISIL does not guarantee the accuracyequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is not liable for investment decisions which may be based on the viewpressed in this Report. CRISIL especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this Report. CRISIL Research operates independently of, and does not have access tormation obtained by CRISIL's Ratings Division, which may, in its regular operations, obtain information of a confidential nature which is not available to CRISIL Research. No part of this Report may be published / reproduced in any formthout CRISIL's prior written approval.

sclaimer

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n case I, investor uses STP regularly to transfer specific amount from equity mutual funds to debt mutual funds once he enters into the consolidation phase at the age o

45. At the age of retirement (60 years), he builds a wealth of Rs 3.62 cr. Upon entering the distribution phase, he starts withdrawing Rs 3 lakh every month from deb

mutual fund via SWP facility. Even after the age of 75, he is left with a balance of Rs 60 lakhs.

n case II, investor liquidates his equity investments and invests the lump sum in debt mutual funds while entering the consolidation phase. At the age of retirement, hi

wealth is Rs 2.85 cr (lower than case I). On commencement of the distribution phase, he liquidates the amount from debt mutual funds, invests in banks' fixed deposit

which is rolled over annually after deducting annual requirement of Rs 36 lakh. This amount is parked in savings bank account and is used to withdraw Rs 3 lakh ever

month. In this case, his balance in the savings bank accounts becomes nil at the age of 71 itself.

While in both cases investors benefit from SIP in equities until the consolidation phase, by reducing equity exposure gradually in case I, the investor benefits from th

compounding benefit of equity until it becomes null. Further, by investing in debt mutual funds during the distribution phase, the investor benefits from higher returns vis

-vis in case II, thus furthering his / her financial planning horizon.

Considering the volatile nature of equity asset class, the assumptions for calculations in the table above have been kept at a conservative estimate of 12% annualized

eturns over long term for equity. If we compare it with actual historical returns, equity mutual funds represented by CRISIL AMFI Equity Fund Performance Index hav

given annualised returns of 22% in the 10 year period ended June 2013. Debt mutual funds represented by CRISIL AMFI Debt Fund Performance Index) have give

7% annualised returns in the similar period.

Even from the tax perspective, investor in case 1 stands out by earning higher post tax returns. Continuing SIP in equity mutual funds for more than one year attracts nocapital gain tax in both cases. However, in case I, STP in debt mutual funds and later withdrawing money via SWP feature, investor attracts lower tax liability due t

benefits arising from indexation. However, in case II, at the time of distribution, investors have to pay higher taxes (as per individual tax slabs) on interest income earned

rom bank fixed deposit and saving account (interest income on savings bank accounts is exempt only up to Rs 10,000 per annum).

Well-planned asset allocation is the key to successful financial planning. SIPs, STPs and SWPs help investors in systematically charting out this asset allocation acros

he life span. Investors may refer to the list of top ranked funds based on CRISIL's Mutual Fund Ranking which is freely available on the

Summing up

http://crisil.com/capita

markets/crisil-mf-ranking-list.html.

..Continued from page 1

Achieve investment goals using 'systematic' features of mutual funds