obtaining financial freedom

8/11/2019 Obtaining Financial Freedom

1/19

THERE ARE IMPORTANT FINANCIAL GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPS

GAPGAP

CHILDS

MARRIAGEGood plans shape good decisions. That's why goodplanning helps to make elusive dreams come true.

Geoffrey Fisher

YOUR OWNRETIREMENT

To enjoy a long,comfortable retirement, save more today.

Suze Orman

CHILDSHIGHER EDUCATION The one thing we can do is invest in the quality

of education, especially higher education.Ron Kind


2/19


GAPGAP

Dear Investors,

NJ GAP is an idea to help you achieve your long-term goals atthe right time by investing systematically in the right avenuesthrough Systematic Investment Plan (SIP). NJ GAP helps youdirect your savings to meet the goals, obligations & dreamslike buying a house, higher education, marriage, retirement,luxury etc. and enjoy life. We believe that with properplanning, right approach and disciplined behaviour anythingis possible to achieve in life.

Wishing you all the best.

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPSGAPGAP

Presenting


3/19

INFLATIONTHE BIGGEST HURDLE IN YOUR FINANCIAL GOALS ACHIEVEMENT As per RBI estimates WPI in ation has grown by 6.8% in the last 30 years

Reduced value of money @ 8% in ation p.a.

R1,00,000/-

1995

2003

2013

R65,908/-

R33,825/-

R 14,693/-

1990

How In ation is eating your Money

3200

5600

29663

10.2%

9.84

32.49

75.80

9.3%

4.08

21.21

56.80

12.1%

6.00

13.00

38.00

8.4%

1990

2003

2013

Actual Inflation

GOLD PETROL DIESEL MILK


GAPGAP


4/19

INFLATION

RETIREMENT

CHILDSHIGHEREDUCATION

2005 2013 2025*2005R15,000/- R25,000/- R60,000/-

2013 2025*HIGHER EDUCATIONHOUSE HOLD EXPENSE

R3.16 lacs R14.45 lacs R36 lacs

*Cost in the year 2025 assumed at 8% in ation p.a. on 2013 prices

CHILDSMARRIAGEPLANNING

2005R4-5 LACS R10-12 LACS R25-30 LACS

2013 2025*MARRIAGE COST

Fees of PGDBM in IIM - Ahmedabad


GAPGAP


5/19

ACHIEVING GOALSTHE RIGHT WAY TO CREATE LONG-TERM WEALTH?

Buying potential BIG WINNING STOCKS?

Successfully TIMING MARKETS

Following EXPERT recommendations

Saving a LOT OF MONEY


GAPGAP


6/19

INVEST IN RIGHT ASSET CLASS

THE RIGHT WAYSIMPLE , SMART & TIME TESTED FORMULA TO ACHIEVE GOALS

START EARLY

SAVE REGULARLY

GOAL ACHIEVEMENT

=

+

+


GAPGAP


7/19

START EARLYGIVE TIME TO YOUR INVESTMENT RATHER THAN TIMING AND BENEFIT

FROM THE POWER OF COMPOUNDING

MR SAXENAMR GUPTA

SAVING STARTING AGE 25 YEARS

MONTHLY SAVINGS R 5,000/-

SAVING TILL AGE 60YRS 35 YEARS

TOTAL AMOUNT SAVED R 21 LACS

WEALTH AT AGE 60 YRS R 5.70 CRORES

45 YEARS

R 15,000/-

15 YEARS

R 27 LACS

R 0.92 CRORES

0.92 CRORES

5.70 CRORES

25 YEARS 60 YEARS45 YEARS

Systematic investing has a compounding effect on your investments. In the long term, an investment as low as R 5000/- per month swells

up into a huge corpus. This can be best explained by the following graph. The graph shows advantages of starting early. If an investorstarts early, even with lower invested amount he can create a large corpus.

The above example is merely an illustration to explain the bene t saving at an early age. Returns are assumed at 15% CAGR. Assumed that SIP investment are done regularlyevery month. No guarantee or assurance of return is bei ng offered by any mutual fund or NJ. The actual result may vary from depicted results depending on scheme selected.


GAPGAP


8/19

RIGHT ASSET CLASSEQUITY MARKET HAS OUTPERFORMED ALL OTHER INVESTMENT AVENUES

It is evident from the graph that in the long term, equity investments haveoutperformed other investment avenues and has beaten in ation by a huge margin.

Growth in Different Asset Classes from 1981-2013Source: Gold-Handbook of Statistics on Indian Economy, RBI. Silver - Handbook of Statistics on Indian Economy, RBI. Sensex - www.bseindia.com, Slide of PPT of HDFC MF.Co Deposits - assumed (1% higher than Bank FD Rate). Bank Deposits - Handbook of Statistics on Indian Economy, RBI. In ation - Handbook of Statistics on Indian Economy, RBI

Equity mutual funds over a long-term

horizon offer better risk-return pay off Liquidity, Transparency and Convenience

+

15.5

9.88.8

10.3

3.2

9.6

2.6

6.8

INFLATION GOLD SILVER BANK DEPOSITS CO. DEPOSITS SENSEX

2.81.8

8.1

18

1614

12

10

8

6

4

2

0

Actual Gain Real Gain 86,518

7,780

17,16720,863 18,350

13,534

INFLATION GOLD SILVER CO. DEPOSITS BANK DEPOSITS SENSEX

90000

8000070000

60000

50000

40000

30000

20000

10000

0

Growth of Rs. 1,000 in Different Asset Classes


GAPGAP


9/19

INVEST REGULARLYDISCIPLINED INVESTING THROUGH SYSTEMATIC INVESTMENT PLAN (SIPS)

Every investor dreams of buying at

a low price and selling at a higherprice. But, how does one knowwhether any given time is the righttime to buy or sell? Many retailinvestors try to judge the marketmovements and end - up losingtheir money in the long term.

A more successful strategy is RupeeCost Averaging wherein you investa xed amount regularly. Thus youpurchase more when the price arelow and purchase less when pricesare high. SIP investments takesadvantage of this strategy. SYSTEMATIC INVESTMENT PLAN (SIP) AN IDEAL WAY TO REDUCE RISK

AVERAGE COST PER UNIT < AVERAGE PURCHASE PRICE PER UNIT

1000100010001000

100.00125.00111.1190.91

4000000

400000

4004400 @ NAV R11

10

427.024697.22 @ NAV R11

9.36

1234

1089

11

The above example is merely an illustration of Rupee Cost Averaging. The NAVs and returns generated are

purely indicative and do not depict the performance of any mutual fund scheme. The actual results may varyfrom the depicted figures. No guarantee or assurance of return is being offered by the Mutual Fund or NJ.

(R) (

R)

(R)

(R)

Rising Market

Market Unit Purchased

Falling Market

Unit PurchasedMarket


GAPGAP


10/19

SENSEX RETURNSEQUITY NOT RISKY IN LONG TERM

266.88-46.7825.02

3422

1235.29

81.76-15.2118.42

3226

618.75

53.04-4.7717.48

3027

310.00

34.71-2.0917.20

2524

14.00

33.942.24

16.642323

00.00

27.406.49

15.812020

00.00

Past Performance may or may not sustain in future. The scenarios depicted herein above is for illustrationpurpose only and do not represent any forecasted performance. The above data shows returns forinvestments done in sensex every year on 31st March starting from 1979 till the year 2013 and is based ondata available on www.bseindia.com which depicts performance of BSE sensex over a period of time. It

shall not be construed to be indicative of scheme performance in any manner.

Reducing probability of loss with increased investment tenure


GAPGAP


11/19

Best market timing (almost impossible) has yielded less than 2% additional return thansystematic investment. Time to go systematic.

TIME IS IMPORTANTMARKET TIMING DOES NOT MATTER OVER THE LONG TERM

INVESTING IN THE BSE SENSEX - 26 YEARS

Period from Jan 1988 to December 2013

11.85%

14.65%13.33%

Data source: www.bseindia.com; capitalmarket


GAPGAP


12/19

SENSEX RETURNS

SENSEX HAS DELIVERED THESE RETURNS INSPITE OF

Two Wars

Major nancial scandals

Assassination of 2 Prime Ministers

At least 3 recessionary periods

10 different governments

An unfair share of naturals disasters

Global crisis like Dot Com bubble of2000 and Sub Prime crisis of 2008

YEAR SENSEX INVESTMENT1979 100 R 1,00,0002013 21,171 R 2,11,71,000

*As on 31 Dec 2013

IN PAST 35 YEARS BSE SENSEX HAS GIVEN16.65% RETURNS


GAPGAP


13/19

POWER OF COMPOUNDING

Albert Einstein once noted that the mostpowerful force in the universe was theprinciple of compounding. In investing, thismanifests itself through something calledcompound interest. Put in its simplest terms,the phrase compound interest means thatyou begin to earn interest income on yourinterest income, resulting in your moneygrowing at an ever-accelerating rate.

DO YOU KNOW?At the Rate of 15% Compounding

what will be the value of

Give maximum TIME to your investmentto get most of POWER OF COMPOUNDING

R 1/-

R 2/-After 5 years

R 4/-After 10 years

R 8/-After 15 years

R 64/-After 30 years


GAPGAP


14/19

SYSTEMATICINVESTMENT PLAN (SIP)

Systematic Investment Plan (SIP) is a tool that allows you to invest in mutual funds through small,periodic installments.SIPs help you set aside a xed amount every month for investments thus contributing towards yourgoals. For Investment purpose, we often wait to collect a large amount of money and investment itall at once. Through SIP you can start with smaller amount on a monthly basis and create wealthover the long term.


GAPGAP


15/19

There are 27 equity funds, which have completed 15 years, the average SIP return of 27 diversified equity fundsis 19.34% over last 15 years. So someone who had started with SIP of R10,000 in January 1999, hasaccumulated R90.14 lacs as on 31st December 2013 (on an investment of R18 lacs over the 15 year period).

SIP PERFORMANCEEQUITY NOT RISKY IN LONG TERM

PERFORMANCE OF SIP IN DIVERSIFIED EQUITY MF SCHEMES

CAGR (%)Category

19.34%13.72%

Avg of MF SchemesSensex

15 yrs Performance Returns on R10,000 invested per monthCurrent Value ( R)

90,13,80755,17,022

(Total number of schemes covered : 27, Returns as on 31 Dec. 2013SIP Amount of R10,000 per month. Total investment R18 Lacs)

INVESTED R SIP R10,000/- PER MONTH

R CURRENT VALUE

*Returns as on 31 Dec. 2013. For Schemes with dividend option, dividend reinvestment has been considered on thedate of dividend. Investment assumed to be done on 10th of every month. Source: Internal


GAPGAP


16/19

There are 4 balance funds, which have completed 15 years, the average SIP return 13.85% over last 15 years. Sosomeone who had started with SIP of R10,000 in January 1999, has accumulated R55.79 lacs as on 31stDecember 2013 (on an investment of R18 lacs over the 15 year period).

SIP PERFORMANCEPERFORMANCE OF SIP IN BALANCE FUND MF SCHEMES

CAGR (%)Category

13.85%13.72%

Avg of BALANCE SchemesSensex

15 yrs Performance Returns on R10,000 invested per monthCurrent Value ( R)

55,79,29355,17,022

(Total number of Balance fund scheme covered 4, Returns as on 31stDecember 2013. SIP Amount of R10,000 per month. Total investmentR18 Lacs)

INVESTED R SIP R10,000/- PER MONTH

R CURRENT VALUE

*Returns as on 31st December 2013. For Schemes with dividend option, dividend reinvestment has been consideredon the date of dividend. Investment assumed to be done on 10th of every month. Source: Internal


GAPGAP


17/19

NJ GAP is a unique goal based investment programme through aSystematic Investment Plan (SIP). Investors in this programme havethe flexibility of choosing a monthly investment amount as well as

the investment duration of their choice. NJ GAP would enable theinvestors to plan for their goals without needing to review,re-invest or for that matter time the markets.

With NJ GAP you can plan to fulfill all your desires in life.

REAP THE BENEFIT OF COMPOUNDING THROUGH SIP

WHY NJ GAPWITH NJ GAP YOU CAN PLAN TO FULFIL YOUR GOALS IN LIFE

GOAL ACHIEVEMENT PROGRAMME THROUGH MF SIPSGAPGAP


GAPGAP


18/19

NJ GAP FEATURESMonthly Investment Option

2000 5000 1000015000 20000

NJ GAP OFFERS INVESTORS WITH GREAT ADVANTAGESINVESTMENTS IN THE RIGHT ASSET CLASS

With NJ GAP, you would invest in Equities, an asset

class with potential to deliver very attractivereturns in the long run

TAX FREE RE TURNS

Long term capital gains in Mutual Funds forinvestments above one year are nil. So, all returnsmade through NJ GAP are TAX FREE (1 year & aboveinvestment only).

INVESTMENTS ARE HIGHLY LIQUID

There is no lock-in* period of any kind and

investments can be very easily redeemed at anytime wish.

CONVENIENCE

You only have to ll the NJ GAP application formand the Auto Debit (ECS) form and submit it withone cheque.


GAPGAP


19/19


GAPGAP

SIP READY RECKONERSIP FOR LONG TERM CAN GIVE YOU THE MAXIMUM RETURN

The above SIP Ready Reckoner is for illustration purpose only. The SIP amount, tenure of SIP, expected rate of return are assumed guresfor the purpose of explaining the concept of advantages of SIP investments. The actual result may vary from depicted results depending

on scheme selected. It should not be construed to be indicative of scheme performance in any manner.

obtaining financial freedom

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