Transcript Slide 1

Presentation on Achieving Goals in Life
What is the Average Age
Let us begin with a little quiz
when one starts Earning?
25 Years
What is the Average Retirement Age?
60 Years
What is an Average Income of an
Middle-Class House-hold?
Rs.15,000/- p.m.
How much can a person
save on a regular basis?
Rs.5,000/- p.m.
If a person can save Rs.5,000/- per month
What will be his wealth when he retires?
Assuming:
He increases his investments by 5% every year
Invests in an Asset class that gives returns of 20%
At Age 60 his wealth would have been
Rs.27 Crores
THE TRUTH
Creating Wealth is Easy
We can all be Wealthy
How can you 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
Shyam
Savings Starting Age
25
40
Savings - Monthly SIP
Rs.5,000/-
Rs.15,000/-
35 years
20 years
Rs.57 lacs
Rs.62 lacs
Saving Years till age 60
Total Amount Saved (appx.)
Give time to your investments
rather than timing
25 years
40 years
27
Crores*
4.90
Crores*
60 years
Assumptions: (a) Savings grows at 5% annually (b) Returns assumed at 20% CAGR
Selecting Right Asset Class
Equity market (represented by BSE Sensex) has
outperformed all other investment avenues
6,000
Sensex
5,000
Bank
Deposits
Company
Deposits
4,000
3,000
2,000
Inflation
1,000
Gold
0
1990- 1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 200491
92
93
94
95
96
97
98
99
00
01
02
03
04
05
Past Performance (BSE Sensex)
Year
Sensex
Investment Rs.
1979
100
1,00,0000
2006
10,000
1,00,00,000
In past 27 years BSE Sensex has given about 18% returns
This is in spite of …
• Two wars
• At least 3 recessionary periods
• At least three major financial scandals • 10 different governments and
• Assassination of 2 prime ministers
• An unfair share of natural disasters
PERFORMANCE OF BSE SENSITIVITY INDEX - Equities not risky in long run
Rolling Returns - Growth
1 year
3 years
7 years
10 years
Equities:
Not Risky in Long Run
Years
YEAR END
SENSEX level
5 years
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%
13
31-Mar-92
4285.00
266.88%
81.76%
53.04%
42.80%
34.71%
14
31-Mar-93
2280.52
-46.78%
42.93%
41.76%
21.78%
26.84%
15
31-Mar-94
3778.99
65.71%
47.90%
39.57%
33.11%
31.45%
16
31-Mar-95
3260.96
-13.71%
-8.70%
33.09%
35.03%
24.87%
17
31-Mar-96
3366.61
3.24%
13.86%
23.58%
24.81%
19.35%
18
31-Mar-97
3360.89
-0.17%
-3.83%
-4.74%
23.18%
20.74%
19
31-Mar-98
3892.75
15.82%
6.08%
11.29%
18.77%
25.60%
20
31-Mar-99
3739.96
-3.92%
3.57%
-0.21%
-1.92%
18.02%
21
31-Mar-00
5001.28
33.73%
14.17%
8.93%
11.87%
20.40%
22
31-Mar-01
3604.38
-27.93%
-2.53%
1.37%
-0.67%
11.93%
22
31-Mar-02
3469.35
-3.75%
-2.47%
0.64%
0.89%
-2.09%
22
31-Mar-03
3048.72
-12.12%
-15.21%
-4.77%
-1.41%
2.95%
23
31-Mar-04
5590.60
83.38%
15.76%
8.37%
7.54%
3.99%
24
31-Mar-05
6492.82
16.14%
23.23%
5.36%
7.58%
7.13%
25
31-Mar-06
11279.96
73.73%
54.67%
25.63%
17.08%
12.85%
18.57%
0 / 13
1
Save Regularly
Disciplined Investing through Systematic Investment Plans
(SIPs) is the ideal way to reduce risk
Twin Benefits of Investing Regularly
Rupee Cost Averaging
Average Purchase cost
will be less
Automatic Timing
At higher prices – less units
At lower prices – more units
Falling Market
Rising Market
Market
Units Purchased
Units Purchased
Market
Past Performance (SIP)
Performance of Systematic Investment Plans (SIPs)
in Mutual Fund Equity oriented schemes
Mutual Fund Equity
Schemes
BSE Sensex
You do an SIP of
Rs.10,000 per
month
Total
Amount
Invested
Invt. Value
Ann.
Returns
Invt. Value
Ann.
Returns
During last 5 years
Rs. 6 lacs
18.64 lacs
47.09
13.96 lacs
34.93
During last 10 years
Rs.12 lacs
89.94 lacs
37.89
30.65 lacs
17.92
Also Equity Mutual Funds have outperformed Sensex, as shown above
Figures are as on 30th June 2006.
For MF SIP performance for 5 year & 10 years around 30 and 5 large schemes respectively, have been considered.
Mutual fund investments are subject to market risks. Past performance may or may not be sustained in future.
Please read the offer document offer investing.
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
•
X
X
X
X
Wealth can be successfully created if we just follow the three
basic principles ...
Starting early and saving for long
Investing in the right asset class
Investing Regularly – big or small
Using the Wisdom
Child Education
Child
Marriage
We all Car
have goals in life like…
Dream
House
Using the Wisdom
We can direct our savings
in such a manner that we achieve our goals,
the way we wish
DISCIPLINED SAVINGS
+
SUFFICIENT TIME
+
RIGHT ASSET CLASS
=
GOAL ACHIEVEMENT
Set your Goal &
we’ll help you Achieve it
Presents
Presenting
•
NJ GAP is a unique goal based investment programme through a
Systematic Investment Plan (SIP)
•
Investors in this programme have the flexibility of choosing a monthly
investment amount as well as the investment duration of their choice
•
This should enable the investors to plan for their goals without
needing to review, re-invest or for that matter, time the markets.
Monthly Investment Options
Rs.2,000/-
Rs.5,000/-
Rs.10,000/-
Rs.15,000/-
Investment Horizons
5 years
10 years
15 years
Advantages to You …
• Investments in the right asset class …
In Equities with potential to earn very attractive returns
• Investment at lower risk…
By Diversification, professional management, and investing by way of SIP
• Investment in a Scheme with Sound Performance History
Investments across market caps in companies like to deliver capital
appreciation
• Investment with a Fund House of Repute
Principal PNB AMC – a joint venture between Principal Finance Group,
Punjab National Bank & Vijaya Bank
• Investments are highly liquid
There is no lock-in period of any kind and investments can be very easily
redeemed at any time you wish
• Hassle-free process of wealth creation
You only have to fill the GAP Application form and the Auto Debit
(ECS) form and submit it with one cheque*
Note: All cheques should be dated 15th August 2006.
The monthly ECS will begin thereafter.
About Principal Pnb Asset Management Company Pvt Ltd
(in association with Vijaya Bank)
Today Principal Mutual Fund in India manages around Rs.10,000 crore
assets for over 5,41,000 investors
Scheme with a sound performance
history, from a fund house of repute
Principal Growth Fund:
An open-ended diversified equity fund
that invests in well managed companies
that are likely to deliver superior capital
appreciation over the medium-term.
• A diversified equity fund with a
combination of top-down & bottom-up
approaches
• One core portfolio offering equity across
styles, market caps and sectors
• Choice of Large Cap and Mid Cap
companies-Mid cap exposure restricted
up to 30% of the portfolio
Impressive track record …
Annualised Returns
Investment Period
Principal Growth Fund
S&P Nifty
1 Year
50.02%
47.11%
3 Years
58.36%
44.93%
5 Years
36.43%
21.32%
Monthly Investment of Rs.10,000/- in Principal Growth Fund
for the last 60 months have generated 41.76% returns
All the figures are as on 31st May, 2006
Mutual fund in investments are subject to market risks. Past performance may or may not
sustained in future. Please read the offer document carefully before investing
Statutory Details:
Principal Mutual Fund has been constituted as a trust with Principal Financial Group (Mauritius) Limited,
Punjab National Bank and Vijaya Bank as the co-settlors. Sponsor: Principal Financial Services Inc.,
USA. Trustee: Principal Trustee Company Private Limited. Investment Manager: Principal Pnb Asset
Management Company Private Limited.
Risk Factors:
Mutual funds and securities are subject to market risks and there can be no assurance and no
guarantee that the objectives of Principal Mutual Fund 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/ Principal Mutual
Fund/Punjab National Bank/ Vijaya Bank does not indicate or guarantee the future performance of the
Scheme (s) of Principal Mutual Fund. Principal Growth Fund is only the name of the Scheme and does
not in any manner indicate either the quality of the Scheme or its future prospects or returns. 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). The Sponsor is not responsible or liable for any loss
resulting from the operations of the Principal Mutual Fund beyond the initial contribution of an amount of
Rs 25 lakhs towards setting up Principal Mutual Fund. 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. Investment of the Scheme’s assets in fixed
income securities is subject to credit risk, interest rate risk, settlement risk and liquidity risk. Scheme
specific risk factors are mentioned in the offer document.
Kindly refer to the Offer Document of the respective schemes carefully prior to investing.