How to achieve Goals in Life

Let us begin with a little quiz

25 Years

What is the Average Age when one starts Earning?

What is the Average Retirement Age?

60 Years

Rs.15,000/- p.m.

What is an Average Income of anMiddle-Class House-hold?

Rs.5,000/- p.m.

How much can a personsave on a regular basis?

If a person can save Rs.5,000/- per monthWhat will be his wealth when he retires?

Assuming:

He increases his investments by 5% every year

Invests in an Asset class that gives returns of 20%

At Age 60 his wealth would have been

Rs.27 Crores

Creating Wealth is Easy

We can all be Wealthy

THE TRUTH

Start Saving Early

The longer you save, the more you make

Save in the Right Asset Class

This will dictate how much wealth you create …

Save Regularly

Even a small amount saved regularly, is good

How can you create wealth?

4.90 Crores*

27 Crores*

40 years25 years 60 years

  Ram Shyam

Savings Starting Age 25 40

Savings - Monthly SIP Rs.5,000/- Rs.15,000/-

Saving Years till age 60 35 years 20 years

Total Amount Saved (appx.) Rs.57 lacs Rs.62 lacs

Starting Early

Give time to your investments rather than timing

Assumptions: (a) Savings grows at 5% annually (b) Returns assumed at 20% CAGR

Power of Compounding

0

1,000

2,000

3,000

4,000

5,000

6,000

1990-

91

1991-

92

1992-

93

1993-

94

1994-

95

1995-

96

1996-

97

1997-

98

1998-

99

1999-

00

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

Sensex

Company Deposits

Bank Deposit

s

Inflation

Gold

Equity market (represented by BSE Sensex) has outperformed all other investment avenues

Selecting Right Asset Class

In past 27 years BSE Sensex has given about 18% returns

Past Performance (BSE Sensex)

Year Sensex Investment Rs.

1979 100 1,00,0000

2006 10,000 1,00,00,000

This is in spite of …

• Two wars• At least three major financial scandals• Assassination of 2 prime ministers

• At least 3 recessionary periods• 10 different governments and• An unfair share of natural disasters

Years YEAR END SENSEX level 1 year 3 years 5 years 7 years 10 years 15 years

0 31-Mar-79 100.00

1 31-Mar-80 128.57 28.57%

2 31-Mar-81 173.44 34.90%

3 31-Mar-82 217.71 25.52% 29.61%

4 31-Mar-83 211.51 -2.85% 18.05%

5 31-Mar-84 245.33 15.99% 12.25% 19.66%

6 31-Mar-85 353.86 44.24% 17.58% 22.44%

7 31-Mar-86 574.11 62.24% 39.49% 27.05% 28.36%

8 31-Mar-87 510.36 -11.10% 27.66% 18.58% 21.77%

9 31-Mar-88 398.37 -21.94% 4.03% 13.50% 12.61%

10 31-Mar-89 713.60 79.13% 7.52% 23.81% 18.48% 21.72%

11 31-Mar-90 781.05 9.45% 15.24% 17.16% 20.52% 19.77%

12 31-Mar-91 1167.97 49.54% 43.12% 15.26% 24.97% 21.01%

13 31-Mar-92 4285.00 266.88% 81.76% 53.04% 42.80% 34.71%

14 31-Mar-93 2280.52 -46.78% 42.93% 41.76% 21.78% 26.84%

15 31-Mar-94 3778.99 65.71% 47.90% 39.57% 33.11% 31.45% 27.40%

16 31-Mar-95 3260.96 -13.71% -8.70% 33.09% 35.03% 24.87% 24.05%

17 31-Mar-96 3366.61 3.24% 13.86% 23.58% 24.81% 19.35% 21.86%

18 31-Mar-97 3360.89 -0.17% -3.83% -4.74% 23.18% 20.74% 20.02%

19 31-Mar-98 3892.75 15.82% 6.08% 11.29% 18.77% 25.60% 21.43%

20 31-Mar-99 3739.96 -3.92% 3.57% -0.21% -1.92% 18.02% 19.92%

21 31-Mar-00 5001.28 33.73% 14.17% 8.93% 11.87% 20.40% 19.31%

22 31-Mar-01 3604.38 -27.93% -2.53% 1.37% -0.67% 11.93% 13.03%

22 31-Mar-02 3469.35 -3.75% -2.47% 0.64% 0.89% -2.09% 13.63%

22 31-Mar-03 3048.72 -12.12% -15.21% -4.77% -1.41% 2.95% 14.53%

23 31-Mar-04 5590.60 83.38% 15.76% 8.37% 7.54% 3.99% 14.71%

24 31-Mar-05 6492.82 16.14% 23.23% 5.36% 7.58% 7.13% 15.16%

25 31-Mar-06 11279.96 73.73% 54.67% 25.63% 17.08% 12.85% 16.32%

28.29% 19.43% 17.41% 17.48% 17.85% 18.57%

10/27 5/25 3/23 3/21 1/18 0/13Probability of Loss

PERFORMANCE OF BSE SENSITIVITY INDEX - Equities not risky in long run

Rolling Returns - Growth

Average Returns

18.57%

0 / 13

Equities:Not Risky in Long Run

Twin Benefits of Investing Regularly

Disciplined Investing through Systematic Investment Plans (SIPs) is the ideal way to reduce risk

Rupee Cost AveragingAverage Purchase cost

will be less

Automatic TimingAt higher prices – less unitsAt lower prices – more units

Rising Market Falling Market

Market Units Purchased MarketUnits Purchased

Save Regularly

You do an SIP of

Rs.10,000 per month

Total Amount Invested

Mutual Fund Equity Schemes

BSE Sensex

Invt. ValueAnn.

ReturnsInvt. Value

Ann. Returns

During last 5 years Rs. 6 lacs 18.64 lacs 47.09 13.96 lacs 34.93

During last 10 years Rs.12 lacs 89.94 lacs 37.89 30.65 lacs 17.92

Past Performance (SIP)

Performance of Systematic Investment Plans (SIPs) in Mutual Fund Equity oriented schemes

Also Equity Mutual Funds have outperformed Sensex, as shown above

Figures are as on 30th June 2006. For MF SIP performance for 5 year & 10 years around 30 and 5 large schemes respectively, have been considered. Mutual fund investments are subject to market risks. Past performance may

or may not be sustained in future. Please read the offer document offer investing.

• “We do not need to be wealthy to be an investor …But we can be wealthy if we are investors”

• The Right way to create wealth …

Buying potential big winning stocksSuccessfully timing the marketsFollowing Expert Advisors recommendationsSaving a lot of money

• Wealth can be successfully created if we just follow the three basic principles ...

Starting early and saving for longInvesting in the right asset classInvesting Regularly – big or small

Wisdom

XXXX

Child Marriage

We all have goals in life like…

Car

Child Education

Dream House

Using the Wisdom

Using the Wisdom

We can direct our savings in such a manner that we achieve our goals,

the way we wish

DISCIPLINED SAVINGS +

SUFFICIENT TIME+

RIGHT ASSET CLASS=

GOAL ACHIEVEMENT

Penetration of Financial Products

Investor Base Across Various Financial Products

240

16 40 17

110

15 1.50

50100150200250

Banking

Credit

Cards

Debit

Cards

Mutual

Funds

Life

Insurance

General

Insurance

Online

Trading

Penetration of Mutual Funds is very low … Going forward, the opportunity is big …

Source: www.rbi.org.in www.irdaindia.org www.sebi.gov.in

Customers in millions

Few people have been exposed to the idea & advantages of mutual funds and even fewer actually invest in mutual funds, because of lack of adequate no. of advisors

*Figures are approx.*for House Holds savings

Low Penetration

Measure US India

Rupees invested in Mutual Funds out of 100

> 30 < 2

MF Industry size as % size of economy (GDP)

83% 6%

Total size / value of MF industry (Rs. Lac Crores)

> 469 > 3.4 Opportunity to offer such products to clients …

Every person can be a customer !!

In past 28 years Equities have outperformed all asset classes giving over 19% returns (BSE Sensex) every year, making every 1 Re. grow 130 times.

Last 28 Years - Over 18% Annual Returns

Index Rs.

1st April 1979 100 1 Lac

1st April 2007 13,072 130 Lacs

Mutual Fund Equity schemes have delivered very attractive returns in last 5 years, giving over 39% returns annually

Excellent Past Performance

Mutual Fund Equity schemes have delivered very attractive returns in last 5 years, giving over 39% returns annually

Opportunity for you to offer your clients with such equity-related products for long-term wealth creation

Scheme Name 3 Years

5 Years

7 Years

10 Years

Average of Diversified Mutual fund Schemes

35.17 39.32 19.72 29.66

BSE 30 (Sensex) 32.76 30.17 14.71 13.96

NSE 50 29.23 27.41 13.99 14.33

No. of Diversified Schemes considered

33 23 17 8

Excellent Past Performance

Superior earnings for Mutual Funds V/s Other products

Assuming 2% upfront 0.30% trail in MF, 4% upfront in Postal, 1% upfront on NSC & PPF and 20%, 10%, 5% for 1, 2 & subsequent years in Insurance

Comparison (Rs. In Lacs)

15th Year 20th Year 25th Year 30th Year

Insurance 9.50 12.00 14.50 17.00

PPF / NSC 1.50 2.00 2.50 3.00

Postal 6.00 8.00 10.00 12.00

Mutual Funds 10.79 23.40 48.83 100.06

Sustainable Earnings

Yearly mobilisation of 10 Lacs in each Insurance, PPF, NSC & Postal Schemes vs. only 1 Mutual Fund SIP of Rs.10 lacs (yearly) for 30 years

For illustrative purpose only … Total Earnings for the Year

Professional Management

Portfolio Diversification

Reduction in Risk

Choice of Products

Flexibility and convenience

Liquidity

Transparency

Low Transaction Cost

MFs also offer great tax benefits :

• no long term capital gains on equity funds,

• tax free dividends &

• eligibility u/s 80C

Mutual Funds – A Great Product

Great product for investment, wealth protection, creation, preservation …

Mutual Funds is suitable for any investor

I. big or small,

II. aggressive or conservative &

III. long-term or short-term

IV. with any investment objective

There are over 30 AMCs with hundreds of schemes for choice

You can offer any product / asset class of choice - equities (domestic & international), debt, gold, commodities, derivatives, etc

Suitability for Any One

For clarification and more details please dial -8986636047. 9031326165 or write to us on yourinvestment@rediffmailcom .

Contact for all types of Investment and Financial Advice

Sanchita Dey

(ARN – 82297) N J Investments – 63285

Sanjeev Dey

9204065873

Thank you very much