2 About Our Equity Investment Team Ajay Tyagi, CFA Ankit Agarwal Swati Kulkarni, CFA Sanjay Dongre Rajeev Kumar V Srivatsa Fund Manager Fund Manager Fund Manager Fund Manager Gupta Fund Manager Fund Manager Vetri Subramaniam Head Equity & Fund Manager Collective Work Experience of Investment Team Over 260 Years Nitin Jain Sachin Trivedi, CFA Amit Premchandani, CFA Kamal Gada, CFA Vishal Chopda, CFA Sharwan Goyal, CFA Research Analyst Head of Research & Fund Manager Fund Manager Fund Manager Fund Manager IT, Internet Sector, FMCG, QSR, Retail, Fund Manager Banks, NBFCs, Cement Overseas Investment Oil & Gas Energy, Fertilizer, Media, Consumer Durable, Telecom Average Work Chemicals, Pharma Experience of Fund Managers Over 21 Years Average Work Experience of Parag Chavan, CFA Preethi R S Deepesh Agarwal Akash Shah Ayush Analysts Research Analyst Research Analyst Research Analyst Research Associate Harbhajanka Over 10 Years Metals & Mining, Utilities, Auto Ancillaries, Capital Goods, Textiles Research Associate Building Materials, Sugar, Insurance, HFC & Infra - Construction Healthcare, Hotels NBFCs FMCG – Fast-Moving Consumer Goods; QSR – Quick Service Restaurants; IT – Information Technology; HFC – Housing Finance Company; NBFC – Non-banking Finance Company
3 About Our Fixed Income Team Amandeep Chopra Head of Fixed Income MBA Total Exp: 27 yrs With UTI MF: 25 yrs Mutual Fund Sudhir Agarwal Ritesh Nambiar Sunil Patil Amit Sharma Fund Manager Fund Manager Fund Manager Fund Manager MBA & CFA MBA, CFA & FRM MFM & M.Com CA,FRM Total Exp: 14 yrs Total Exp: 14 yrs. Total Exp: 30 yrs. Total Exp: 11 yrs. With UTI MF: 10 yrs With UTI MF: 11 yrs With UTI MF: 30 yrs With UTI MF: 11 yrs Retirement Manish Joshi Solution & Rahul Aggarwal Shilpita Guha Offshore Fund Manager PMS, Portfolio Manager CIO MSc, MFM BE, MBA (Finance) MSc (Economics), MBA Total Exp: 22 yrs Total Exp: 10 yrs Total Exp: 30 yrs With UTI MF: 22 yrs With UTI MF: 3 yrs With UTI MF: 30 yrs Ayushi Rathore Pratik Jain Subhradeep Mitra Research Research Analyst Research Analyst Research Analyst CA MBA (Finance) MBA (Finance) Total Exp: 2 yrs Total Exp: 6 yrs Total Exp: 7 yrs With UTI MF: 1 Week With UTI MF: 1 Yr With UTI MF: 1 Yr
4 Fixed Income Investment Process Internal Inputs External Inputs Board of Directors Scheme Offer Document (Internal Norms/Delegation) (Investment objective/Guidelines) Dealing Team Debt & Economic Provides market inputs on Call Research Reports market, Gsec & Corp. Debt Inputs from Strategic Meeting & Partner Conference Calls Fund Managers & Investment Committee Newswire & Inputs from UTI Research Bloomberg Team Review Mechanism Investment Decision I Risk Management I Control Mechanism /Function I Fixed Income Steering Committee I I Compliance I Risk Management I I Meeting with Board of Directors I I Audit I Execution Independent Dealing team
5 Hybrid product positioning – Hybrid & Solution S olution (Equity) Aggressive Multi Asset Fund Solution/Insurance (Debt) UTI CCF- Investment Plan Risk Level Equity Savings UTI Hybrid Equity Fund Conservative UTI Multi Asset Fund UTI ULIP UTI CCF-Savings UTI RBP Arbitrage UTI Equity Savings Fund UTI Regular Savings Fund UTI Arbitrage Fund Return Level
6 Retirement planning – A Perspective Its not only about leisure travel, golf and grand children Its not just creating a nest egg Its not a deferred planning – It is an empowerment towards seeing life’s all possibilities – Money harmony, peace of mind, health richness & Joyful moments through a well backed up Retirement plan
7 Road to Retirement 58 Yrs Retirement Pre retirement Spending years Parents with or without children Married Adult Young adult Consumption 25 Yrs Housing Child’s Marriage Child’s Education
8 Retirement Planning – Key Concerns Inflation The potential threat which erodes purchasing power. Medicare cost >Medical Inflation is far higher than core inflation rate The expected average inflation in the country is around >Significant rise in out of pocket expense towards treatment 5% . Longevity Withdrawal >Life expectancy in the country has gone up in last The amount the retiree takes from saving or investment decade by 5 years. each year has a decisive impact on the sustainability of retirement corpus. >But a long life increases the chance of disease burden. There could be incident where the kitty may fall short in the middle of the journey. Source : Money Today, % increase in Medicare are in absolute terms
9 The changing face of Retirement ✓ Job shuffle is common , indecisive work ✓ Job longevity…and hence a higher longevity degree of retirement security ✓ Higher life expectancies ✓ Shorter life expectancies on average ✓ Growing cost of medical & healthcare ✓ Relatively lower medical care cost ✓ Uncertainties in terms of social security ✓ Relatively Lower retirement income needs cover ✓ Joint Family Structure ✓ Nuclear family structure
10 What do you aspire in your sunset years ? To continue with the lifestyle you are currently used to, ▪ To adequately provide for unseen events ▪ To go for unfulfilled dreams Leisure travel , Mansion etc ▪ However, keep the following in mind ▪ Desired Lifestyle will decide the corpus required ▪ Retirement is closer than you can think of ▪
11 What should be the size of the nest egg ? Experts say one may require around 70% 80% of your final working years annual income each year to meet your retirement needs, • Case illustration Mr. Kumar is a 40 yrs old working executive and he plans to retire at the age of 60 yrs. He needs to build a financial support package to be utilized 20 years hence. Step 1 Estimation of current needs Suppose Mr. Kumar’s current annual income is Rs. 5 Lacs and he saves around Rs. 1 loc . Hence, he will require 4 lacs annually to maintain and meet the current needs Step 2 Adjustment of Inflation As a second step. Mr Kumar needs to arrive at the time period for which nest egg is to be built up. Further he has to take into account the inflation for next 20 years . Assuming 8% average annual inflation rate, the inflation adjusted amount would be, Rs. 4,00,000 *( (1.08)^ 20) = 18,64,000 lacs (This is amount Mr. Kumar would require every year to enjoy his current lifestyle. Step 3 Estimating Nest egg based on life expectancy Since Mr. Kumar has estimated 20 yrs post retirement life , he would require around, Rs. 18,64,000 * 20 = Rs. 3,72,80,000 This is a basic calculation and user of this information should not consider it as guidance or recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.
12 Are you saving enough ? Targeted Amount Saving Required Today How much are you saving Annually Monthly 1 cr ??? 84,882 6,696 2,54,647 19,789 ??? 3 crs 4,24,411 32,982 5 crs ??? Calculation methodology: Targeted amt mentioned is hypothetical , Annual & Monthly amount arrived through present value annuity formula , Interest considered 15% Time period assumed 20 years This is for illustration purpose only and user of this information should not consider it as guidance or recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.
13 Consider inflation also…! Rs.500 today is not the same as Rs.500 in the year 2020 or 2030. ▪ Money’s purchasing power changes by the mere passage of time due to, ▪ ➢ Inflationary forces ➢ Consumption preferences ➢ The uncertain nature of the future ➢ The Human life value factor
14 Impact of Inflation The impact of Inflation 67,816 value of savings over a period of time 52,843 41,175 32,084 25,000 25,000 19,480 15,179 Today 5 yrs 10 yrs 15 yrs 20 yrs 11,827 9,216 The Impact of Inflation monthly expenses growing Today 5 yrs 10 yrs 15 yrs 20 yrs over a period of time The illustration of the impact of inflation expense / savings Inflation considered at 5% on a monthly basis , Time Period assumed 20 years This is for illustration purpose only and user of this information should not consider it as guidance or Recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.
15 And the gap… 80000 70000 60000 50000 40000 30000 20000 10000 0 Today 5 yrs 10 yrs 15 yrs 20 yrs Expenses Gap on account of rising expense and deceasing value of savings based on previous slide This is for illustration purpose only and user of this information should not consider it as guidance or Recommendation towards investment decision. User is advised to consult their investment advisor for his/her investment decision.
16 Investment options for Retirement Planning Fixed Deposit Property Gold Public Provident Fund Pension Policies from Insurance companies Pension Funds Mutual Funds
17 Advantage – Mutual Fund Long term capital growth Systematic Tax investment efficiency plan Mutual Funds Flexible Multiple liquidity options to (Lump Sum choose or SWP) from Special features like switch & SWP SWP – Systematic withdrawal Plan
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