dsp+blackrock+sip+presentation

7/29/2019 DSP+BlackRock+SIP+Presentation

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Systematic Investment Plan

DSP BlackRock Mutual Fund


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When they say time is money, they mustmeanSystematic Investment Planning


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Life is a roller coaster ride....Full of ups and downs. Wknow we have to save for

responsibilities life brings with it.But no matter how much youIts Never Enough!


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Introduction


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Did You Know?

If your current monthly expenses are Rs. 30,000/- per month, theafter 20 years you will require Rs. 80,000/- a month to just mainta

the same lifestyle!

An education degree for your child which currently costs Rs. 2lakh could cost over Rs. 34 lakh after 11 years!

At ination of 5%


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Every individual has one or more of the above goals

Individual Investor Needs: Investment Goals

All individuals need to save for

Retirement

Childs education / marriage

Medical emergency

Other family obligations


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All individuals have a nite period to save for their investment goals

Earnings (Consumption + Savings)

Consumption

Savings

60Retirement

27Young Married

22Young Independent

40Middle Age

Individual Investor: Life Stages


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8

30,000

38,288

62,368

79,599

Today 5 years 15 years 20 years

100,000

78,353

37,689

Today 5 years 15 years 20 years

48,102

Investors need to beat ination

Impact of ination on monthly expensesof `30,000 today

Value of `100,000 over time

Value of Money Over Time

All gures in Rs.; The above charts are only for illustration purposes and are based on an assumed rate of ination of 5% p.a.


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Equities outperform other asset classes over the long term

Performance of Various Asset Classes

6.8%

8.9%

1.9%

15.7%

8.3%

WPI Inflation Bank FDs* BSE Sensex^

Growth Real Growth

Cumulative annualised returns:1982 to 2012

Source: IIFL, Internal; *1-3 year deposit rate; ^excluding dividends; data as at end FY2012


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Individual investors are scared of

The Downside Risk in Equities The Risk of Market Volatility The Risk of Market Timing


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What else makes a material

impact on investmentsin equity?


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Market timing does not matter over the long term

Investing in the BSE Sensex

15.52%

Fixed investment on

1st day of every month

14.82%16.18%

Fixed investment at

lowest sensex value

every year

Fixed investment at

highest sensex value

every year

Returns* are from Jan 1980-Mar 2012

Source: Internal; *XIRR, time period considered Jan 2, 1980 to Mar 30, 2012


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Saving a small sum of money regularly in equity mutual funds can make your money work witgreater power and can have a signicant impact on wealth accumulation.

Even a seemingly small 5 year delay can cost you the CROREPATI tag

The Power of Compounding

Investment Scenario A Investment Scenario B

Number of years 15 20

Monthly investment `5000 `5000

Total investment `9 lakh `12 lakh

Assumed annualised return 18% 18%

Final corpus `45.96 lakh `1.17 crore

The above illustration above is merely indicative in nature and does not in any manner indicate the performanof any of the schemes of DSP BlackRock Mutual Fund. Please read the SID and SAI carefully before investing


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Summary

Long Term Systematic MonthlyInvestment In equity schemes

is ideal for this !

Investors needs to saveregularly and invest those

savings in higherreturn assets to create wealth


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How Do You Achieve Your

Financial Goals?


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Retirement Planning

Monthly investment needed to achieve thiscorpus in 21 years

at 12%* `12,583

at 15%* `8,083

at 18%* `5,090Today At the timeof retirement

`30,000

`83,579

21 Yrs

Inflation 5%

Corpus required

per month

Retirement corpus required to meet post retiremeexpenses (if invested at 7%) : `1.4 cr

Monthly HouseholdExpenses

*Assumed rate of annualised return


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Planning for Childs Education

Monthly investment needed to achieve this corpuin 11 years

at 12%* `12,456

at 15%* `10,166

at 18%* `8,237

Present When your Child actually

goes for this degree

`20,00,000

`34,20,000

11 Yrs

Inflation 5%

Corpus required

Educational Degreefor Child



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Planning for Childs Marriage

Monthly investment needed to achieve this corpuin 16 years

at 12%* `7,509

at 15%* `5,466

at 18%* `3,925

Present When your Child actuallygets married

`20,00,000

`43,70,000

16 Yrs

Inflation 5%

Corpus required

Childs Marriage



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What Are The BenetsOf Investing Through

Systematic Investment Plan?


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2

Benets of Investing Systematically

The Benet of Long Term Equity Investment

Equitiesgivesuperiorreturnsamongallassetclassesoverthelongterm

DSPBlackRockMutualFundhasatrackrecordofconsistentperformance

The Benets of Systematic Monthly Investment

Takesouttheriskofmarkettiming

Addsthebenetsoftherupee cost averaging and the power of compounding

RUPEE COST AVERAGING

One doesnt have to worry about when to invest, how much to invest etc considering daily market movementassystematicinvestingreducestheriskssignicantly

Eliminatestheneedtotimeyourinvestmentsinequities

Smoothenstheimpactofmarketuctuationsandhencereducesrisksofinvestinginvolatilemarkets

The risk of market volatility gets negated with more units being purchased when the Price is low anfewer units being bought when the Price is high

B f I i S i ll R C A i


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Average Cost per Unit will always be lesser than the Average NAV per Unit, regardless of the

market movements

Benets of Investing Systematically: Rupee Cost Averaging

Average NAV per Unit over 12 months =

(23+21+22+19+16+17+17+20+21+19+25+24)/12

or `20.34

Average Cost per Unit over 12 months =

12,000/601or `19.96

Time

(Months)Amount

invested

NAV perUnit (`)

Unitspurchased

1 1,000 23 43

2 1,000 21 483 1,000 22 45

4 1,000 19 53

5 1,000 16 63

6 1,000 17 59

7 1,000 17 59

8 1,000 20 50

9 1,000 21 4810 1,000 19 53

11 1,000 25 40

12 1,000 24 42

Total 12,000 601

Source: Internal; Hypothetical numbers meant only for illustration purpose

B t f I ti S t ti ll ( td)


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Benets of Investing Systematically (contd)

Flexibility

Youcanchoosefromawidearrayofschemes

Youcandecidetokeepinvestedamountsinanearlierscheme&investfutureSIPinstallmentsintnew scheme

Added Convenience

Noneedtosubmitpostdatedcheques-AutodebitfacilityavailableacrossmultiplelocationsinInd

Regularaccountstatements

Facilityofdirectcreditofredemption/dividendproceedsintoyourbankaccount

Th Fi t 4 St T P t ti l W lth C ti


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2

The First 4 Steps To Potential Wealth Creation

Select a mutual fund scheme of

your choice

Select the amount you can

afford to invest every month

Decide on the frequency with

which you will invest

Decide the length of the

investment period

Step 1

Step 2

Step 3

Step 4

The Power of Compounding: Illustration A


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Invest Systematically to Benet from the Power of Compounding

The Power of Compounding: Illustration A

Table Illustrating the power of compounding (Assumed rate of return: 12% p.a

Monthly Investments

`

12% return per annum

5 years 10 years 15 years 20 years 25 years2,000 1.65 Lacs 4.65 Lacs 10.09 Lacs 19.98 Lacs 37.95 Lacs

5,000 4.12 Lacs 11.62 Lacs 25.23 Lacs 49.96 Lacs 94.88 Lacs

10,000 8.25 Lacs 23.23 Lacs 50.46 Lacs 99.91 Lacs 1.90 Crore

15,000 12.37 Lacs 34.85 Lacs 75.69 Lacs 1.50 Crore 2.85 Crore

20,000 16.50 Lacs 46.47 Lacs 1.01 Crore 2.00 Crore 3.80 Crore

25,000 20.62 Lacs 58.08 Lacs 1.26 Crore 2.50 Crore 4.74 Crore50,000 41.24 Lacs 1.16 Crore 2.52 Crore 5.00 Crore 9.49 Crore

The above table is for illustration purpose only and not an indication of the performance of any of the schemes DSP BlackRock Mutual Fund. Calculations are based on assumed rate of return and actual return may be more, or less.

Source: Internal

The Power of Compounding : Illustration B


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Invest Systematically to Benet from the Power of CompoundingInvest Systematically to Benet from the Power of Compounding

The Power of Compounding : Illustration B


Monthly Investments

`


5 years 10 years 15 years 20 years 25 years2,000 1.79 Lacs 5.57 Lacs 13.54 Lacs 30.32 Lacs 65.68 Lacs

5,000 4.48 Lacs 13.93 Lacs 33.84 Lacs 75.80 Lacs 1.64 Crore




25,00022.42 Lacs 69.66 Lacs 1.69 Crore 3.79 Crore 8.21 Crore

50,000 44.84 Lacs 1.39 Crore 3.38 Crore 7.58 Crore 16.42 Crore


Source: Internal

The Power of Compounding : Illustration C


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2

Invest Systematically to Benet from the Power of Compounding

The Power of Compounding : Illustration C


Monthly Investments

`


5 years 10 years 15 years 20 years 25 years2,000 2.07 Lacs 7.65 Lacs 22.69 Lacs 63.23 Lacs 1.73 Crore






50,000 51.73 Lacs 1.91 Crore 5.67 Crore 15.81 Crore 43.13 Crore


Source: Internal


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A Rupee Saved Is A Rupee Earned A Long Journey Begins With A Small St


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Mutual Fund investments are subject to

market risks, read all scheme relateddocuments carefully.

Systematic Investment Plan is only a facility and the Fund/Trustee/AMC/Sponsor do not give any assurance or guarantee that the return will be

achieved and the same is subject to the performance of the Schemes.

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