FUNDS SUITABLE FOR INVESTORS WITH A LOW RISK

APPETITEWITH REAL EXAMPLES…

Appetite

CONTENTS

TYPES OF MUTUAL FUNDS RISK CATEGORIZATION EXAMPLES CONCLUSION REFERENCE

Types of Mutual funds

• Equity growth (only in stocks)• Debt income (only in fixed income assets)• Money market (including gilt)-in short term

money market instruments (including G-sec’s)• Balanced funds- partly in stocks and partly in

fixed income securities (in order to maintain a balance in returns and risks

Risk Categorization

•Investors understand that their principle will be at Low Risk.

•Investors understand that their principle will be at Medium risk.

•Investors understand that their principle will be at High Risk.

Low risk Medium risk High risk

INVESTMENT OPTIONS

Real Examples Rohith is 47 years old and is planning to do an investment of Rs.10,000/-

per month, for after retirement usage. What do we advice him? Check Inflation

Investing Rs.10,000 per month in SIP for 10 years will create a corpus of around Rs.20.25 lakhs (assuming returns will be 10-15%).

Equity 50%Debt 40%Gold 10%

Features of SIP Key Highlights:

An open-end income fund which seeks to provide regular income and capital

appreciation through a focus on corporate securities. Opportunity to invest in the steadily developing corporate bond

segment in India which is likely to offer attractive risk/reward prospects

Attractive investment opportunity for investors with a medium to long-term investment

horizon (ideally greater then 30months) and looking at opportunities to mitigate risks

associated with the current volatility in fixed income markets Investors can potentially benefit from the prospect of capital

appreciation

over the long-term

Features:Load Structure:Entry Load: NilExit Load: 0.50% if redeemed / switched outwithin 9 months of allotment dateMinimum Investment:Retail: Rs. 5,000 and in multiples of Re.1

Key Highlights: An open-end income fund which seeks to provide regular income and capital

appreciation through a focus on corporate securities. Opportunity to invest in the steadily developing corporate bond segment in India

which is likely to offer attractive risk/reward prospects Attractive investment opportunity for investors with a medium to long-term investment

horizon (ideally greater then 30months) and looking at opportunities to mitigate risks associated with the current volatility in fixed income markets Investors can potentially benefit from the prospect of capital appreciation

over the long-term

Templeton India Corporate Bond Opportunities Fund

SIP-IF YOU HAD INVESTED Rs.5000 EVERY MONTH IN TISTIP…..

1 Year 3 Year 5 Year 7 Year 10 Year

Total Amount Invested (Rs.)

60,000 180,000 300,000 420,000 600,000

Total Value as on June 30, 2013 (Rs.)

63,427 209,086 380,275 587,269 950,079

Returns 10.97% 10.03% 9.45% 8.91% 8.66%

Total Value of 1 Year T-Bill

62,556 201,975 353,228 810,488 961,711

1 Year t-Bill returns 8.15% 7.67% 6.49% 6.20% 5.87%

Total value of Crisil Short Term Bond Index

62,908 205,394 366,460 554,673 875,646

Crisil Short Term Bond Fund Index Returns

9.29% 8.81% 7.97% 7.84% 7.35%

SBI MAGNUM INSTACASH FUND - LIQUID FLOATER PLAN

SBI Magnum InstaCash Fund - Liquid Floater Fund (SBIMICF- LFP) is a open ended liquid scheme and the investments would be made in securities with maturity less than or equal to 91 days. The investments in the scheme would be made only in debt/ money market securities.

Asset allocationInstrument Asset Allocation

(% of Net Assets)Risk Profile

Debt instruments (including Debt derivatives) & money market instruments (including cash/C BLO/ Repo and equivalent) with a residual maturity in line with SEBI regulations

Up to 100% Low to Medium

Securitized debt Up to 20% Medium to High

FEATURES:-

Date of Inception 01/10/2002

Minimum Investment Rs. 10000/-

Entry Load N.A.

Exit Load NIL

SIP N.A.

STP N.A.

SBI MAGNUM GILT FUND - SHORT TERM FUND

Safety - Zero credit risk

Gilt Fund will however be subject to interest rate risk

which is minimized by active duration management

Under the Short Term Fund - Plan, the funds will be

normally managed to a maximum average portfolio-maturity of three years.

Key Benefit

Safety of Investment – Zero credit risk

Liquidity

Ease of transactions

Investments in smaller amounts

To provide the investors/unit holders with returns generated throughinvestments in government securities issued by the Central

Government and / or a State Government

Instrument Asset Allocation (% of Net Assets)

Risk Profile

Government of India Dated Securities

100% Sovereign

State Government DatedSecurities

100% Low

Government of India Treasury Bills

100% Sovereign

OBJECTIVES

Date of Inception 30/12/2000

Minimum Investment Growth option - Rs. 5,000/-Dividend options - Rs. 5,000/-

Entry Load N.A.

Exit Load C DSC – 0.15% for exit within 15days for the date of investment.

SIP For Growth & Dividend optionMonthly - Minimum 1000 & inmultiples of 1 thereafter formaximum six months (or) minimum500 & in multiples of 1 thereafterfor minimum one year.Quarterly – Minimum 1500 & inmultiples of 1 thereafter forminimum one year.

STP Rs. 500 per month or quarter.

FEATURES:-