Consider Systematic Investment Plan (SIP)in Mutual Fund Schemes.

Dont depend on predictions.Any day is a good day to start.

To know more, contact your financial advisor or visit www.hdfcfund.com/InvestorEducation

Its time to let go stock market predictions and assumptions. You need not speculate the ups and downs of the market

to achieve your goals. Make way for Systematic Investment Plan (SIP), wherein you can invest a fixed sum regularly in

the selected mutual fund scheme. SIP averages out your cost of acquisition by purchasing more units when prices are

low and lesser units when prices are high. Hence, you can better your returns over the long term by averaging out

market volatility. So invest in mutual funds via SIP, because any day is a good day to start accomplishing your goals.

#Disclaimer: The illustrations above are merely indicative in nature and should not be construed as investment advice. They do not in any manner imply or suggest current or future performance of any Mutual Fund Scheme. Rupee Cost Averaging and SIP neither ensure you profits nor protect you from making a loss in declining markets.

16.240

16.266

15.123

15.266

16.845

16.991

15.501

15.114

12.774

13.848

14.566

15.111

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

12,000

61.5764

61.4779

66.1244

65.5050

59.3648

58.8547

64.5120

66.1638

78.2840

72.2126

68.6530

66.1770

788.9056

January

February

March

April

May

June

July

August

September

October

November

December

Total

Rupee Cost Averaging - An illustration#

NAV Per Unit (`)Month

Amount(`) Units

What are SIPs?

Systematic Investment Plan (SIP) is an investment technique whereby the investor invests a fixed sum of money at regular intervals, say once a month or once a quarter.

For instance, your SIP may involve investing Rs.1000 On the 5th of every month In a particular scheme of a mutual fund For the next five years Essentially SIPs help avoid Decision Paralysis associated with emotions of fear and greed and takes advantage of ups and downs in the market.

Take Advantage of Rupee Cost Averaging

Most investors think that buying stocks at low prices and selling

them when prices are high is a favourable strategy. But this is

hard to achieve and involves risky variables.

A more successful investment strategy is to adopt the method

called Rupee Cost Averaging. Under Rupee Cost Averaging, more

units are purchased when prices are low and fewer units when

prices are high. Imagine investing Rs. 1,000 every month in an

equity mutual fund scheme starting in January. The following

table illustrates how this investment would have behaved from

January to December on the 5th of every month.

The NAVs are illustrative only.

As seen in the table, by investing through SIP, you end up buying more units when the price is low and fewer units when the price is high. However, over a period of time these market fluctuations are generally averaged. The average cost of your investment is often reduced. Hence, the average cost per unit in the above illustration is approximately Rs. 15.21.

Why SIPs?

Regular investing for long periods of time deliver healthy returns. An Illustration:

*Monthly instalments, compounded monthly, for a 15-year period.The above illustration is only to show the power of compounding.

Comparing SIP with any other method of investing

Benefits of SIP Disciplined investments (Remember, an investors worst enemy is not the stock market, but his own emotions) Reach your financial goals Take advantage of Rupee Cost Averaging, i.e. get more units when prices are low and buy less when prices are high Grow your investments with compounded benefits Do all this effortlessly

Savings permonth(Rs.)

(for 15Years)

Totalamount

invested (in Rs.Lacs)

Assumed Rate of return (per annum)

Monthly Savings - What your savings may generate#

5,000

4,000

3,000

2,000

1,000

9.0

7.2

5.4

3.6

1.8

14.6

11.7

8.8

5.8

2.9

17.4

13.9

10.4

7.0

3.5

20.9

16.7

12.5

8.3

4.2

(Rupees in Lacs, 15 years later)*

6.00% 8.00% 10.00%

Recurringnature of

SIPs

Long terminvesting

Fixedamount at

everyinterval

Buildingwealth

MeetingLong term

goals

Loweraveragecost of

investing

Buildingwealth

Buy lesswhen theprice is

high

RegularSavings

Buy morewhen theprice is

low

Benefit fromthe power ofcompunding

Regularinvestments

PresentingSystematic Investment Plan - A Prudent Investment Strategy

SIP

Uncomplicated and largely automatic Small amounts of funds required No need to time the market Averages out cost per unit

Other methods of investing

Good amount of research and market tracking required Lump sum funds required Make your best attempt to time the market Cost per unit depends on your market timing

NA

V p

er

Unit

(`)

0

2

4

6

8

10

12

14

16

18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

When the NAV is the highest, you buy the least number of units

When the NAV is the lowest, you buy the highest number of units

78.2840units

16.991

12.77458.8547units