Achieving Your Goals in Life

What is the Average Age when a child needs Higher Education?

20 Years

What is the Average Cost of Higher Education Today?

Engineer : Rs.10 lacs Medical : Rs.15 lacs Foreign Study : Rs.25 lacs

How much would the Higher Education cost you at the maturity?
Assuming current age is 3 years (17 years remaining)

Engineer : Rs.27 lacs Medical : Rs.41 lacs Foreign Study : Rs.67 lacs
Assuming inflation @ 6%

What is the Average Age when a child gets married?

24 Years

What is the Average Expenses of Marriage Today?

Rs.10 Lacs

How much would your childs Marriage cost you at maturity?

Rs.34 Lacs

Assuming inflation @ 6%. Current Age is 3 yrs & Marriage Age is 24 yrs.

What is the Average Retirement Age?

60 Years

What is an Average Monthly Expense of a Middle-class House Hold?

Rs.10,000/- p.m.

How much Retirement Kitty would you need at Retirement?

Rs.2.20 Crores
Monthly Expenses would grow from Rs.10,000/- now to over Rs.64,500/- at Retirement & would continue to grow thereafter
Current Age: 28 years. Retirement Age - 60 yrs. Life Expectancy - 90 yrs. Assuming inflation @ 6%. Returns on Retirement Kitty 6%

Brief Look at Our Life Goals

Assuming: Current Age Self : 28 yrs Child: 3 yrs Child Education Engineer Medical Foreign Study Wedding of Child Marriage Retirement: Retirement Kitty : : : : : : : : 20 yrs Rs.27 Lacs Rs.41 Lacs Rs.67 Lacs 24 yrs Rs.34 Lacs 60 yrs (Self) Rs.2.20 Crores

Creating Wealth

How much can a person save on a regular basis?

Rs.5,000/- p.m.

Creating Wealth

If a person can save Rs.5,000/- per month What will be his wealth when he retires?
Assuming: Current Age: 28 yrs. Retirement Age: 60 yrs. Invests in an Asset class that gives returns of

8%

At Age 60 his wealth would have been

Rs.84 Lacs
Amount Invested: Rs. 19.20 Lacs. Times amount gets rolled over: 4.37.
Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Creating Wealth

If a person can save Rs.5,000/- per month What will be his wealth when he retires?
Assuming: Current Age: 28 yrs. Retirement Age: 60 yrs. Invests in an Asset class than gave returns of

20%

At Age 60 his wealth can be

Rs.11.30 Crores
Amount Invested: Rs. 19.20 Lacs. Times amount gets rolled over: 58.86.
Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Past Performance
Year 1979 Sensex 100 Investment Rs.

1 Lacs

2009

11400*

1.14 crore

In past

30 years BSE Sensex has given approx. 17.1% returns

*As on 30th April 2009

This is in spite of Two wars At least three major financial scandals Assassination of 2 prime ministers

At least 3 recessionary periods 10 different governments and An unfair share of natural disasters

Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing.

Back to Basic: Equities are not risky in Long Term

PERFORM ANCE OF BSE SENSITIV ITY INDEX - Equitie s not ris k y in long run Rolling Re turns - Grow th SENSEX Years YEAR END 1 year 3 years 5 years 7 years 10 years 12 years level 0 31-Mar-79 100.00 1 31-Mar-80 128.57 28.57% 2 31-Mar-81 173.44 34.90% 3 31-Mar-82 217.71 25.52% 29.61% 4 31-Mar-83 211.51 -2.85% 18.05% 5 31-Mar-84 245.33 15.99% 12.25% 19.66% 6 31-Mar-85 353.86 44.24% 17.58% 22.44% 7 31-Mar-86 574.11 62.24% 39.49% 27.05% 28.36% 8 31-Mar-87 510.36 -11.10% 27.66% 18.58% 21.77% 9 31-Mar-88 398.37 -21.94% 4.03% 13.50% 12.61% 10 31-Mar-89 713.60 79.13% 7.52% 23.81% 18.48% 21.72% 11 31-Mar-90 781.05 9.45% 15.24% 17.16% 20.52% 19.77% 12 31-Mar-91 1167.97 49.54% 43.12% 15.26% 24.97% 21.01% 22.73% 13 31-Mar-92 81.76% 53.04% 42.80% 34.71% 33.94% 4285.00 266.88% 14 31-Mar-93 2280.52 -46.78% 42.93% 41.76% 21.78% 26.84% 23.95% 15 31-Mar-94 3778.99 65.71% 47.90% 39.57% 33.11% 31.45% 26.85% 16 31-Mar-95 3260.96 -13.71% -8.70% 33.09% 35.03% 24.87% 25.60% 17 31-Mar-96 3366.61 3.24% 13.86% 23.58% 24.81% 19.35% 24.39% 18 31-Mar-97 3360.89 -0.17% -3.83% -4.74% 23.18% 20.74% 20.63% 19 31-Mar-98 3892.75 15.82% 6.08% 11.29% 18.77% 25.60% 17.29% 20 31-Mar-99 3739.96 -3.92% 3.57% -0.21% -1.92% 18.02% 18.05% 21 31-Mar-00 33.73% 14.17% 8.93% 11.87% 20.40% 23.47% 5001.28 22 31-Mar-01 3604.38 -27.93% -2.53% 1.37% -0.67% 11.93% 14.45% 23 31-Mar-02 3469.35 -3.75% -2.47% 0.64% 0.89% 13.23% -2.09% 24 31-Mar-03 -12.12% -15.21% -4.77% -1.41% 2.95% 8.32% 3048.72 25 31-Mar-04 5590.60 83.38% 15.76% 8.37% 7.54% 3.99% 2.24% 26 31-Mar-05 16.14% 23.23% 5.36% 7.58% 7.13% 9.11% 6492.82 27 31-Mar-06 73.73% 54.67% 25.63% 17.08% 12.85% 9.54% 11279.96 28 31-Mar-07 15.89% 32.73% 30.38% 14.71% 14.55% 12.27% 13072.10 29 31-Mar-08 19.67% 34.06% 38.69% 23.33% 14.92% 13.66% 15644.00 30 31-Mar-09 -37.94% -4.88% 11.67% 15.84% 10.01% 9.24% 9708.50 Probability of Los s 10/29 5/27 3/25 3/23 1/20 0/18 Probability of Los s (%) 35.71% 19.23% 12.50% 13.64% 5.26% 0.00% 15 years

27.40% 24.05% 21.86% 20.02% 21.43% 19.92% 19.31% 13.03% 13.63% 14.53% 14.71% 15.16% 16.32% 7.72% 13.70% 6.49% 0/15 0.00%

Long Term Equity Returns is a function of the profitability growth of the companies which in turn is related to the economic growth
Eco. Growth Demand Co. Profits Returns

Returns in Equities are function of Earnings

BSE SENSEX Vs Earning

Sensex Close

Sensex Earning

Note:SENSEX Value and Earnings are taken from Jan 91 to March 09. Both figures are equalized to 100 for Jan 91 for comparison purpose.

Managing Investors Psyche Wrong emotion dominates at wrong time

Greed

Fear Hope

Cycle of Fear, Greed & Hope

Give Time rather than Timing the Equity market

Investing in the BSE Sensex 25 years

15.07% 16.90% 16.02%02%

Data source: ICRA MFIE

Fixed investment at highest sensex value every year Fixed investment at lowest sensex value every year Fixed investment on 1 day of every month
st

Market timing does not matter over the long term

Past Performance
Performance of Systematic Investment Plans (SIPs) in Mutual Fund Equity Oriented Schemes
You do an SIP of Rs.10,000 per month Total Amount Invested Mutual Fund Equity Schemes
Investment Value (Rs.) % Ann. Returns

BSE Sensex
Investment Value (Rs.) % Ann. Returns

During last 5 years During last 10 years

Rs. 6 lacs Rs.12 lacs

7.25 lacs 34.84 lacs

7.2 19.66

7.14 lacs 24.72 lacs

7.00 13.91

Performance as on 30th April 2009. Number of major equity schemes covered; for 5 year performance 45 & for 10 year performance 22.

Also Equity Mutual Funds have outperformed Sensex, as shown above

Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing.

How can we create wealth?

Start Saving Early
The longer you save, the more you make

Save in the Right Asset Class

This will dictate how much wealth you create

Save Regularly
Even a small amount saved regularly, is good

Starting Early

Ram
25 Rs.5,000/35 years Rs.21 lacs

Shyam
40 Rs.10,000/20 years Rs.24 lacs

5.71
Crores*

Investment Starting Age Investment - Monthly SIP Saving Years till age 60 Total Investment Made

1.33
Crores*

Give time to your investments rather than timing

25 years 40 years

* Constant Savings

60 years

Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Selecting Right Asset Class

Equity market (represented by BSE Sensex) has outperformed all other investment avenues even after steep fall of 2008-09.
14000 12000 10000 8000 6000 4000 2000 0 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Gold Sensex Co Deposits Bank Deposits Inflation

Save Regularly
Disciplined Investing through Systematic Investment Plans (SIPs) is the ideal way to reduce risk

Twin Benefits of Investing Regularly

Rupee Cost Averaging Automatic Timing
Market Units Purchased

Average Purchase cost will be less At higher prices - less units At lower prices more units
Units Purchased Falling Market Market

Rising Market

Wisdom
We do not need to be wealthy to be an investor But we can be wealthy if we are investors
The Right way to create wealth
Buying potential big winning stocks Successfully timing the markets Following Expert Advisors recommendations Saving a lot of money

Wealth can be successfully created if we follow the three principles ...

Starting early and saving for long Investing in the right asset class Investing Regularly big or small

Helping you achieve your goals in life

Child Education - Saving years:
Education Engineer Medical Foreign Study` Target Rs.27 Lacs Rs.41 Lacs Rs.67 Lacs

17 yrs
GAP Amt. Rs.2,000 Rs.3,000 Rs.5,000

Amount Actually paid: 4.08 Lacs (for 2,000)

Child Marriage - Saving years: Target GAP Amount : Rs.34 Lacs : Rs.1,500 21 yrs

Amount Actually paid: 3.78 Lacs

Assuming returns of 20%. GAP figures are rounded off .

Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Helping you achieve your goals in life

Retirement - Saving years: 32 yrs

Target : Rs.2.20 Crores GAP Amount : Rs.1,000

Amount Actually paid: 3.84 Lacs
Small monthly investments of few thousand rupees can help you Achieve your goals & Relax in life!
Assuming returns of 20%. GAP figures are rounded off .
Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.

Achieve your goals in life with NJ GAP

Disclaimer: The above presentation is for private circulation only. This is for information purpose only and is not intended to be and must not be taken as the basis of any investment decision. Nothing in this presentation should be construed as an investment advice ,and/or as an advice to buy or sell or solicitation to buy or sell any mutual fund / schemes. NJ IndiaInvest has taken due care & caution in preparing this presentation and the information has been taken from various sources. However, NJ or any of its employees, Partners, do not take any responsibility or liability, expressed or implied, whatsoever, for any investment decision made or taken on the basis of this presentation. The viewers are strongly advised to seek expert professional help before making any decisions. The presentation contents returns / performance figures which are for illustrative purpose only. There is no guarantee that the projection given would materialize. NJ IndiaInvest or any of its employees or Network Partners cannot be held responsible for any performance or non-performance of the illustrations / projections depicted in this presentation. Risk Factors: Mutual funds and securities are subject to market risks and there can be no assurance and no guarantee that the objectives of Mutual Fund schemes invested in can be achieved. As with any investment in securities, the NAV of the units issued under the Scheme (s) can go up or down, depending up on the factors and forces affecting the capital markets. Past performance of the Sponsor/ AMC/ does not indicate or guarantee the future performance of the Scheme(s) of any Mutual Fund. Investors are therefore urged to read the Offer Document (s) carefully, and consult their legal/tax/investment advisor before they invest in the scheme(s). Investors in the scheme(s) are not being offered a guaranteed or assured rate of return or monthly or regular/periodical income distribution, and the actual returns and/or periodical income distribution to an investor will be based on the actual NAV, which may go up or down, depending on the market conditions. Kindly refer to the Offer Document of the respective schemes carefully prior to investing.