Mutual Funds Advisory

Inflation is the rate at which the price of goods and

services increases on a regular basis
For example

1980s TODAY
CURRENT EXPENSES

CURRENT SAVINGS

INVESTMENT OBJECTIVE IS TO BEAT INFLATION

 REAL RETURN= RETURN GENERATED – BSE
INFLATION RATE SENSEX^
15%
REAL
FIXED RETURN
DEPOSIT 9%
7-8%
INFLATION
6% REAL
RETURN
1-2%

^Based on data until March 2019

EQUITY INVESTMENTS GENERATE THE BEST RETURNS OVER

LONG TERM
MARKET VOLATILITY

The probability of losing money over a long term

investment in mutual funds is next to zero. (See Table)

NOT BEING ABLE TO WITHDRAW MONEY

In Mutual Funds, you can easily withdraw your money

anytime. You might be charged some exit load in some
funds for exiting in less than one year

DO NOT HAVE TIME TO ACTIVELY MANAGE IT

Mutual Fund Investments do not require active management on

your end. There are professional fund managers and analysts
who manage each of the schemes. We manage your entire
portfolio for you and suggest the best suitable schemes.
 Investment Investment Scenario B
Scenario A
Number of Years 15 20
Monthly Rs 10000 Rs 10000
Investment (SIP)
Total 18 lakhs 24 lakhs
Investment
Annualised Return 12% 12%
Final Corpus 50.45 lakhs 99.91 lakhs
~ 1 Cr
A seemingly small delay of 5 years can end up costing you over 50 lakh
rupees and you may lose out on the “Crorepati” tag
TIMING THE MARKET
TIMING THE MARKET
Monthly Household Expense
INFLATION @ 6%
50,000 2,87,175
30 years

RETIREMENT CORPUS REQUIRED AFTER 30

YEARS ( if invested @ 7% p.a.) = Rs 6.31 Cr

SIP (MONTHLY INVESTMENT) REQUIRED TO

MEET THIS GOAL
At 12 % p.a. Rs 18064
At 15 % p.a. Rs 9119
Educational Degree Expense
INFLATION @ 6%
20 lakhs
11 years 42.8 lakhs

SIP (MONTHLY INVESTMENT) REQUIRED TO MEET

THIS GOAL
At 12 % p.a. Rs 16233
At 15 % p.a. Rs 13,570
Benefit of Equity It takes out the risk of
investments as they market timing as you
generate superior will be investing
returns over long term periodically

Benefit of RUPEE COST

AVERAGING and the
POWER OF COMPOUNDING
TIME Amount NAV per Units Average Cost per unit over
(Months) Invested unit Purchased 12 months
= ( Amount Invested)/ Total Units
1 5000 23 217 = 60,000/3070
2 5000 20 250 = 19.54
3 5000 22 227
4 5000 20 250  Eliminates the need to time your
investments
5 5000 19 263
6 5000 17 294  Smoothens the impact of market
7 5000 15 333 fluctuations and hence reduces
8 5000 16 312 the risk of investing in volatile
markets
9 5000 18 278
10 5000 21 238  The risk of market volatility gets
11 5000 24 208 negated with more units being
purchased when the price is low
12 5000 25 200 and fewer units when the market
Total 60,000 3070 is high
A • Decide on an amount you can afford to
invest every month

A • Decide on the frequency with which you

will invest

• Decide the length of the investment

period

• We will help you decide on a mutual fund

scheme according to your preference
Experience of over Website and
10 years mobile app

Currently managing
At your door
159 crores
service
THANK YOU