sip presentation aug10

8/6/2019 SIP Presentation Aug10

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Badi badi khushiyaan,

chotti chotti

kishton se banayen.

Systematic Investment PlanICICI Prudential -



2

y

Why should you invest?y When should you invest?

y Invest Smart Invest Safe

y Benefits of SIP

• Additional Benefits

y How does it work?

y Lump sum vs. SIP

y SIP performance - Equity & Debt

Index



3

Why should you invest?

• Money that is accumulated and

not invested loses value over

time because of inflation

• ` 100000 today will be worth only ` 94000 next year due to a 6%^

inflation

• Prices are rising -

Investing in SIP funds”could help increase”

your wealth multi-fold!

^6% rate of inflation is assumed for the purpose of explaining the concept. The inflation rate will depend on the various market conditions.

100000

80000

60000

40000

20000

0

100000

73390

53862

39529

Savings

Present 5 Years 10 Years 15 Years

Diminishing value of savings



• “A” saved ` 3.4 lac every year for 5 years to buy a 1000 sq.ft home in Delhi. But now h

can only get him 1000 sq.ft in Noida

• Property prices are rising faster than bank interest rates so your savings are losing v

year

• Investing regularly with SIP today helps you to purchase your dream house tomorr

2005 2010 Rise p.a.

Delhi ` 1700 ` 3000 15.3%

Gurgaon ` 1250 ` 2200 15.2%

Noida ` 1000 ` 1700 14.0%

Why should you invest?

Looking to buy a new house?

The rates mentioned above are only to make the investor understand the concept and actual rates may vary substantially.



Predicting the markets

consistently can be a ver

difficult task.

When should you invest?

Trying to predict the markets?



Source: bseindia.com. Past performance may or may not be sustained in future. The above graph depicts the performance of BSE Sensex over a period

not be construed to be indicative of any of the schemes of ICICI Prudential Mutual Fund in any manner.

The investor is always in a dilemma about “when to enter” and “when to exit” the

Monthly returns for BSE SENSEX since 1980

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

J a n / 8 0

J a n / 8 1

J a n / 8 2

J a n / 8 3

J a n / 8 4

J a n / 8 5

J a n / 8 6

J a n / 8 7

J a n / 8 8

J a n / 8 9

J a n / 9 0

J a n / 9 1

J a n / 9 2

J a n / 9 3

J a n / 9 4

J a n / 9 5

J a n / 9 6

J a n / 9 7

J a n / 9 8

J a n / 9 9

J a n / 0 0

J a n / 0 1

J a n / 0 2

J a n / 0 3

J a n / 0 4

J a n / 0 5

J a n / 0 6

J a n / 0 7

J a n / 0 8

J a n / 0 9

J a n / 1 0

When do you enter? When do you exit?


Turbulentmarkets



Need of the hour is a dynamic way to invest in volatile markets.

Source: bseindia.com. The above graph is only for illustration and depicts the performance of BSE Sensex over a period of time and shall not be

indicative of any of the schemes of ICICI Prudential Mutual Fund in any manner.

Market rose 52.5% in 2007 And fell by 60% immediately

7000.0

10000.0

Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10

13000.0

16000.0

19000.0

22000.0

7000.0

10000.0

13000.0

16000.0

19000.0

22000.0

Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09


Turbulentmarkets



Invest Smart, Invest Safe

• Systematic Investment Plan (SIP)

• Spreads investment over the duration of SIP in small, manageable

installments

• Constant presence makes sure you don’t miss out on any opportunities!



Benefits of SIP

• Gives you a lower unit cost than the market average

• It is a dynamic way to invest in fluctuating markets

• Compounding gives you greater advantage

Additional Benefits

• Dividends are tax free*

• Your portfolio is managed by expert fund managers

• Gives you complete transparency by way of disclosure of portfolio every month

You earn regularly,

You spend regularly,

Why not invest regularly?

*Dividend is tax free as per current applicable tax provisions.



How does it work?

• Rupee cost averaging – generally gives

you a lower unit cost than market average

• Investing fixed amounts makes sure you

purchase more units at a lower price and

less at a higher price

Past performance may or may not be sustained in future. The actual results may vary substantially from the depicted figures. No guarantee o

return or protection of capital is being offered by ICICI Prudential Mutual Fund.

In case of SIP it is assumed that ` 100 is invested on the first day of every month at the unit price (NAV).

In case of lump sum, it is assumed that ` 700 is invested on 1st Jan when unit price was ` 10 and redemption is made when the unit price ` 11

Rupee Cost Averaging

SIP Lump sum

Average unit cost ` 9.8 ` 10

Units Bought 72.32 70

End Value ` 795.56 ` 770

Average NAV ` 9.86

10

10

11.76

Jan Feb Mar Apr May Jun

9.528.33

11.11

12.50

8.5

10.5

12

9

8

NAVUnits Bought



11

How does it work?

Investing LONGER even in smaller amounts, yields GREATER results… so start imm

Law of Compounding

Past performance may or may not be sustained in future. The above CAGR performance is calculated based on IRR with the a

SIP installments were received across the time periods from the start date of the SIP. Assumed ` 1000 invested every month. Inception NAV has been take

of growth option is considered for computation. Benchmark is BSE IT.

ICICI Prudential Technology Fund - Growth option vis-a-vis benchmark as on August 3

SIP Total Amount Scheme SchemeBenchmark

BenPeriod

Start Date Invested Market Value SIP Returns(BSE IT)

SIP

Market Value1 Year SIP 30-Sep-09 12,000 13,689.70 32.27% 12,737.12 1

3 Year SIP 30-Sep-07 36,000 53,894.86 29.59% 51,995.00 2

5 Year SIP 30-Sep-05 60,000 86,146.58 14.89% 82,729.28 1

Since Inception 3-Mar-00 126,000 350,926.09 18.68% 280,431.98 1



12

Lump sum vs. SIP - Illustration

A B

Lump sum

investment

SIP

investment

Invests ` 126,000 in

ICICI Prudential

Technology Fund

since inception

Invests ` 1000 every

month in ICICI

Prudential Technology

Fund since inception

On 1st August 2010, both of them encash their units



13

Lump sum vs. SIP - An example

Performance returns as on 31-Aug-10

PeriodICICI Prudential BSE IT Index

Technology Fund (Benchmark)

1 Year 39.67% 28.83%

3 Years 1.60% 5.44%

5 Years 11.60% 12.45%

Since Inception 4.63% -2.93%

(03-Mar-2000)

The redemption proceeds for investments made on

03-Mar-2000 would be `

202,734 @ 4.63% CAGR asdepicted below.

SIP investment (B)Lump sum investment (A)

The redemption proceeds for investments m

inception would be `

350,926.09 @ 18.68% Cdepicted below.

SIP returns as on 31-Aug-10

PeriodICICI Prudential BSE I

Technology Fund (Benc

1 Year 32.27% 13

3 Years 29.59% 26

5 Years 14.89% 13

Since Inception 18.68% 14

(03-Mar-2000)

Past performance may or may not be sustained in future. The the same may not necessarily provide the basis for compariso

investment. NAV of growth option is considered for computation. The returns of one year are higher largely due to market recovery. Returns <1Year : Absolu

: CAGR. Benchmark is BSE IT. For computation of returns the allotment NAV has been taken as ` 10/-. In case of SIP assumed ` 1000 invested every month a

performance is calculated based on IRR with the assumption that SIP installments were received across the time periods from the start date of the SIP.



14

Lump sum vs. SIP - An example

Advantage!

• By investing the same amount, B gets the advantage of the price when the market

• SIP gives constant presence, so there is hardly any chance of missing an opportun

• Hence, B gets a higher valuation since inception

• B could also keep rest of his funds in a fixed income instrument and accumulate in

• SIP reduces market volatility by purchasing units at prices across the SIP period



15

Proven track record

ICICI Prudential Infrastructure Fund (Open ended Equity Fund)


BencPeriod

Start Date Invested Market Value SIP Returns(S&P CNX Nifty)

SIP RMarket Value

1 Year SIP 30-Sep-09 12,000 12,601.41 11.12% 12,663.85 12.3 Year SIP 30-Sep-07 36,000 43,931.41 14.10% 44,688.96 15.

5 Year SIP 30-Sep-05 60,000 91,167.44 17.27% 82,525.88 13.

Since Inception 31-Aug-05 61,000 94,156.44 17.61% 84,791.37 13.


installments were received across the time periods from the start date of the SIP. Assumed ` 1000 invested every month. Inception NAV h

` 10/-. NAV of growth option is considered for computation. Benchmark is S&P CNX Nifty. Returns as on 31st August 2010.

ICICI Prudential Tax Plan (Open ended Equity Linked Savings Scheme)


BencPeriod


SIP RMarket Value


5 Year SIP 30-Sep-05 60,000 93,608.67 18.38% 82,525.88 13.




16

Proven track record

ICICI Prudential Dynamic Plan (Open ended Diversified Equity Fund)


BencPeriod


SIP RMarket Value


5 Year SIP 30-Sep-05 60,000 96,203.77 19.54% 82,525.88 13.

Since Inception 31-Oct-02 95,000 308,917.94 29.42% 209,709.80 19.

Past performance may or may not be sustained in future. The above CAGR performance is calculated based on IRR with the ass

installments were received across the time periods from the start date of the SIP. Assumed ` 1000 invested every month. Inception NAV ha

` 10/-. NAV of growth option is considered for computation. Benchmark is S&P CNX Nifty. Returns as on 31st August 2010.

ICICI Prudential Discovery Fund (Open ended Diversified Equity Fund)


BencPeriod


SIP RMarket Value


5 Year SIP 30-Sep-05 60,000 109,839.37 25.18% 82,525.88 13.




17

Not comfortable in equity? NO problem!SIP in Debt Funds also give you a variety of choices with a lower risk.


installments were received across the time periods from the start date of the SIP. Assumed ` 1000 invested every month. Inception NAV h

` 10/-. NAV of growth option is considered for computation. Benchmark is Crisil MIP Blended Index. Benchmark start date is 30-Mar-02. Returns shown as on 31

ICICI Prudential MIP 25 (An open ended income fund. Monthly income is not assured and is subject to the availability of distributable surplus.)


BencPeriod

Start Date Invested Market Value SIP Returns(Crisil MIPEX)

SIP RMarket Value

1 Year SIP 30-Sep-09 12,000 12,425.93 7.83% 12,329.21 6.03 Year SIP 30-Sep-07 36,000 41,823.47 10.53% 40,241.05 7.7

5 Year SIP 30-Sep-05 60,000 75,423.43 9.37% 72,413.46 7.6

Since Inception 30-Mar-04 78,000 107,333.56 9.91% 100,410.11 7.8

ICICI Prudential MIP (An open ended fund. Monthly income is not assured and is subject to the availability of distributable


BencPeriod

Start Date Invested Market Value SIP Returns(Crisil MIPEX)

SIP RMarket Value

1 Year SIP 30-Sep-09 12,000 12,340.21 6.24% 12,329.21 6.0

3 Year SIP 30-Sep-07 36,000 40,831.81 8.81% 40,241.05 7.7

5 Year SIP 30-Sep-05 60,000 73,631.29 8.38% 72,413.46 7.6

Since Inception 10-Nov-00 118,000 185,417.84 9.03% NA N



18

ICICI Prudential Gilt - Investment - PF Option - Growth


BenchPeriod

Start Date Invested Market Value SIP Returns(I-SEC Li-Bex)

SIP ReMarket Value

1 Year SIP 30-Sep-09 12,000 12,250.57 4.58% 12,246.68 4.5

3 Year SIP 30-Sep-07 36,000 42,852.76 12.29% 39,748.33 6.9

5 Year SIP 30-Sep-05 60,000 82,403.74 13.04% 72,279.34 7.6

Since Inception 19-Nov-03 82,000 122,456.50 11.80% 104,634.52 7.1

Past performance may or may not be sustained in future. The above CAGR performance is calculated based on IRR with the as

installments were received across the time periods from the start date of the SIP. Assumed ` 1000 invested every month. Inception NAV has been taken as `

option is considered for computation. Returns shown as on 31st August 2010.

Not comfortable in equity? NO problem!

SIP in Debt Funds also give you a variety of choices with a lower risk.



Badi badi khushiyaan,chotti chottikishton se banayen.

SystematicInvestment Plan

ICICI Prudential -SMS INVEST to 58558

CALL MTNL/BSNL : 1800 222 999Others : 1800 200 6666

or apply online at www.icicipruamc.com

sip presentation aug10

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