Reliance SIP Insure “A unique facility to Save, Grow & Insure”
What Rs 1000 p m can get you What Rs 1000 p.m can get you…. A dinner for your family Watching movie with your spouse Buy clothes for your kids Buy clothes for your kids Make you a Millionaire* & also get you free life insurance on your SIP Make you a Millionaire & also get you free life insurance on your SIP installments *please refer slide 3 for more details Confidential Slide
What does it take to create wealth What does it take to create wealth… Investing Rs 1477 Investing Rs 1477 per month @ 15% p.a for 15 yrs makes you a Millionaire Rate of Return 8% 15% Value /Yrs 10 15 20 10 15 20 5,00,000 2,715 1,435 843 1,794 739 330 10,00,000 5,430 2,871 1,686 3,589 1,477 660 25,00,000 , , 13,575 , 7,177 , 4,216 , 8,972 , 3,694 , 1,649 , 50,00,000 27,150 14,354 8,432 17,943 7,387 3,298 100,00,000 54,300 28,707 16,865 35,886 14,774 6,597 The table shows the SIP amount required to be invested per month for achieving the target amount in the specified time period. The hypothetical rate of return on the investments is assumed at 8% & 15% p.a respectively This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast on minimum returns and safeguard of capital. SIP does not assure a profit or guarantee protection against loss in a declining market. The calculation shows the outcome of investing a specified amount at a certain assumed rate of interest per annum. Confidential Slide
Most likely reasons to invest Most likely reasons to invest….. Child’s Education Child’s Marriage Housing Retirement Retirement Safety Everyone has one or more of the above reasons to invest for! Confidential Slide
7 Successful habits of investing 7 Successful habits of investing � Start early � Don’t time the market Would you like � Prudent Asset allocation to guess the t th � Invest regularly 8 th habit that we got for we got for � Understand the risk reward ratio � Understand the risk reward ratio you? � Have a set investment objective � Invest for long term Confidential Slide
I Insure your financial goals….. fi i l l Before we know more about this product….let us understand the investment climate around us! Confidential Slide
Value of Money over time Value of Money over time Impact of Inflation on monthly expenses of Rs 20,000 60,000 53,066 50,000 nthly Exps in Rs 41,579 40,000 32,578 25,526 30,000 20,000 Mon 20,000 20 000 10,000 - Today 5 years 10 years 15 years 20 years Value of Rs 1 lac over time Inflation – A Devil, we need to beat it! Inflation Inflation Inflation A Devil we need to beat it! A Devil we need to beat it! A Devil, we need to beat it! Period 120,000 100,000 100,000 78,353 y Value of Money 80 000 80,000 61,391 60,000 48,102 37,689 40,000 Inflation @ 5% p.a 20,000 - This is an hypothetical illustration to explain the concept of “Power of Compounding”. Past Performance may or may not be sustained in future. Today 5 years 10 years 15 years 20 years Period Confidential Slide
Where do people save their money? Where do people save their money? Real Estate, 5 Chit fund/NBFC, Equity market, 1.1 9.4 9.4 Mutual Fund, 1.2 Gold, 5.8 Life insurance, 32.8 Banks, 44.9 Postal Savings Postal Savings, 11.6 Source: Invest India Incomes and Savings Survey 2007** Mutual Fund as an Asset Class has a very low penetration Confidential Slide
Long Term Investing – Case Studies Invest Systematically….. Invest Systematically….. Its not the timing but the time in the market which matters Confidential Slide
Invest Long term Invest Long term… Money grows over a period of time… Rs 1000 invested at 8%p.a every month for… %p y Power of Compounding 592,947 600,000 after ding 500,000 348,345 compound 400 000 400,000 Amount a 240,000 300,000 184,166 180,000 120,000 200,000 73,967 60,000 100,000 - 5 yrs 10 yrs 15 yrs 20yrs Period Principal Amount … just like a rolling snowball gathers snow & grows. This is an hypothetical illustration to explain the concept of “Power of Compounding”. Past Performance may or may not be sustained in future. Confidential Slide
It always pays to start early & save for retirement It always pays to start early & save for retirement A holds for B holds for B holds for 30 years 20 years Start Early Age of 1,488,603 1,500,000 mount at the A 1,000,000 689,511 60 500,000 120,000 120,000 - Am A B People Who have invested A & B invest Rs. 2000 every month, earning interest @ 8% p.a. on a monthly � compounding basis p g A starts at the age of 25 yrs, while B starts investing at the age of 35 yrs � Both of them invest for 5 yrs ( Rs. 1.2 lacs) and hold their investments till 60 yrs. of age � A’s investment appreciated to over Rs.14,88,603 while B’s investment grew to only Rs. � 6 89 511 6,89,511 Only an illustration to explain the power of compounding. Confidential Slide
Past Performance of SIP in Reliance Growth Fund SIP Installment /Yrs 3 5 10 Since Inception RGF 47,384 85,310 711,113 2,804,629 BSE BSE 1 000 1,000 45 635 45,635 77,664 77 664 334 587 334,587 720 548 720,548 100 142,153 255,930 2,133,340 8,413,886 3,000 136,905 232,993 1,003,762 2,161,644 236,921 426,551 3,555,567 14,023,144 5,000 5,000 228,175 228,175 388,321 388,321 1,672,937 1,672,937 3,602,739 3,602,739 473,843 853,101 7,111,135 28,046,288 10,000 456,350 776,643 3,345,874 7,205,479 710,764 1,279,652 10,666,702 42,069,432 15,000 684,525 1,164,964 5,018,811 10,808,218 Inception Date: 8th Oct 1995. Returns are of Retail Plan- Growth Plan – Growth option as on 31 st May 2011. Past Performance may or may not be sustained in future. The above table shows the historical SIP performance of Reliance Growth Fund (Retail Plan – Growth Plan – Growth option) vis its benchmark BSE 100. For example; A person who had made an SIP of Rs 1000 p.m in the above fund since inception on 8 th Oct 1995 would have invested Rs 1.88 lacs by 31 st May 2011 and have earnt a total amount of Rs 28.04 lacs. Disclaimer: Returns on SIP and Benchmark are annualised and cumulative investment return for cash flows resulting out of uniform and Disclaimer: Returns on SIP and Benchmark are annualised and cumulative investment return for cash flows resulting out of uniform and regular monthly subscriptions have been worked out on excel spreadsheet function known as XIRR. Calculations assume that all payouts during the period have been reinvested in the units of the scheme at then prevailing NAV. It is assumed that a SIP of Rs. 1000/- each executed on 10th of every month has been taken into consideration including the first installment. It may please be noted that load has not been taken into consideration. The amounts invested in SIP and the market values of such investments at respective periodic intervals thereof are simulated for illustrative purposes for understanding the concept of SIP. This illustration should not be construed as a promise, f f f f S guarantee on or a forecast of any minimum returns. The Mutual Fund or the Investment Manager does not assure any safeguard of capital and the illustrated returns are not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. SIP does not guarantee or assure any protection against losses in declining market conditions. Confidential Slide
Make the right choice Make the right choice…. The alternative is to : Simple, straightforward way to � � create long term wealth Follow markets very closely Understand and embrace � Time your entry and exit very risk The choice is yours to make……….. Put time on your side Well � Invest systematically � Select your stocks Don’t worry about market � judiciously timing timing And hope that you get it right A tried & tested method � more often than not! Confidential Slide
Systematic Investment Plan (SIP) & its benefits Systematic Investment Plan (SIP) & its benefits SIP is a long term investment technique under which you invest a fixed sum of money on a monthly or quarterly basis in a mutual fund scheme at the prevailing NAV. This allows you to save and invest regularly while you are earning. Improves Protects against probability market volatility market volatility Helps averaging Helps averaging of better f b tt cost of returns Eliminates investment need for timing g markets Inculcates savings habit Confidential Slide
Here comes the most sought after product Here comes the most sought after product…….. Do you want an investment Are you looking at Are you looking at technique which can investing for the long make you invest term?? regularly?? Choose Choose then then R li Reliance SIP R li Reliance SIP SIP SIP Insure Insure D Do you want a free f life insurance Do you want your cover?? planned investments to be completed after your be completed after your unforeseen death?? Confidential Slide
“A unique facility to Save, Grow & Insure” Confidential Slide
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