INVESTMENTS

Beating Inflation

Saving for Retirement

Putting Your Money to

Work

Generates alternate source of income

Meeting Goals

Investment Creates WealthLeads to

Consumption

Why Invest?

Avenues for Investment

Direct Equity

Debt Mutual Fund Real Estate Gold

Avenues for Investments

Mutual Funds

Mutual Fund (usually called Asset Management Company) manages the pool of money

collected from various investors for investing in various classes of assets to achieve certain

financial goals.

Depending upon risk appetite, Investor can choose to invest purely in Debt Funds or Equity

Funds or a combination of both with the help of Mutual Fund.

Mutual Fund Schemes can be open ended or closed ended in nature.

Each and every fund carries an exit load.

Exit load is a fee or an amount charged from an investor for exiting a scheme before the

specified tenure.

Mutual Funds

Working of a Mutual Fund

Diversification

Affordability

Professional Management

Liquidity

Flexibility

Performance Monitoring

STAY INVESTED FOR WEALTH CREATION

Why Invest in Mutual Funds?

Through MF, you can offer multiple solutions to your customers Equity Funds –

For Long Term Wealth creation

Gold Funds – Investors can buy Gold through MF route

Liquid Funds – For short term investment needs (upto 3 months)

MIP - Low risk hybrid product for medium term investors

Capital Protection Funds – Capital Protection+ Additional Returns

FMPs – Tax efficient investment option for FD customer

ELSS Funds – For Tax Saving needs of customers

SIP – Appropriate tool for Financial planning

International Funds – For benefiting from growth in other markets

Mutual Funds : Product Basket

Systematic Investment Plan

Systematic Investment Plan

What is SIP?

Systematic Investment Plan (SIP) is an approach to investing

small amounts at regular intervals rather than investing lump

sum amount at one time.

Considered to be the safest way to invest into Equity

Markets by going the SIP route, Investor is not trying to

capture the Highs and lows of the market, but trying to

average the cost by investing at regular interval.

Concept is that, When the markets fall investor gets more

units. Likewise investor acquires lesser units when the market

goes up. This means that investor buys less when the price is

high and investor buys more when the price is low. Hence the

average cost per unit falls down over a period of time.

Accumulate Wealth

Build your investment at regular intervals

Affordability

Build your future

Liquidity

Reduce Risks

Features

Power of compounding

Rupee Cost Averaging

Convenience

Tax Saving

Advantages

2011 2012 2013 2014 2015

Power of Compounding

Systematic Investment Plan

WORKING OF SIP:

Suppose 'X' decides to invest in a

mutual fund through SIP. He commits

making a monthly investment of Rs

1000 for a period of twelve months

(starting 1st January 2006) in a fund

named 'ABC'. The payment can be done

by issuing twelve post-dated cheques of

Rs 1000 each or through ECS facility (if

available).

DateMonthly

Investment(a)

NAV(b)

Number of Units

(a)/(b)

Jan 1 Rs. 1,000 46.29 21.603

Feb 1 Rs. 1,000 48.08 20.799

Mar 1 Rs. 1,000 52.78 18.947

Apr 1 Rs. 1,000 56.36 17.743

May 1 Rs. 1,000 58.42 17.117

Jun 1 Rs. 1,000 56.42 17.724

Jul 1 Rs. 1,000 62.14 16.093

Aug 1 Rs. 1,000 67.58 14.797

Sep 1 Rs. 1,000 71.70 13.947

Oct 1 Rs. 1,000 76.19 13.125

Nov 1 Rs. 1,000 83.97 11.909

Dec 1 Rs. 1,000 89.92 11.121

SIP Working

DateMonthly

Investment(a)

NAV(b)

Number of Units

(a)/(b)

Jan 1’2006 Rs. 1,000 46.29 21.603

Feb 1’2006 Rs. 1,000 48.08 20.799

Mar 1’2006 Rs. 1,000 52.78 18.947

Apr 1’2006 Rs. 1,000 56.36 17.743

May 1’2006 Rs. 1,000 58.42 17.117

Jun 1’2006 Rs. 1,000 56.42 17.724

Jul 1’2006 Rs. 1,000 62.14 16.093

Aug 1’2006 Rs. 1,000 67.58 14.797

Sep 1’2006 Rs. 1,000 71.70 13.947

Oct 1’2006 Rs. 1,000 76.19 13.125

Nov 1’2006 Rs. 1,000 83.97 11.909

Dec 1’2006 Rs. 1,000 89.92 11.121

Brief Summary:

•Monthly Investment: Rs. 1000

•Period of investment: 12 months

(1st Jan 2006 to 1st Dec 2006)

•Total amount invested: Rs. 12,000

•Total number of units credited to 'X': 194.925

•Average cost/unit:

Rs. 61.5621 ( Rs.12,000/194.925)

SIP Working

ELSS, an acronym for Equity Linked Savings Scheme, which is a Tax

Saving Mutual Fund Scheme.

ELSS mutual funds in simple term are mutual fund schemes

maintaining a minimum of 65% of their investments in equity.

Open-ended scheme.

Returns from an ELSS fund are market related and has a lock in

period of three years..

Investors get the Tax Benefit on the amount invested as per the

Income Tax Act’1961.

Lump sum, Systematic Investment Plan and Systematic Transfer

Plan options are also available.

About ELSS

• Equity oriented funds are exempt from long term capital gain tax and any capital

appreciation in equity oriented funds after 1 year is tax free.

• Tax Free Dividend in the hands of the investor.

• Shorter lock in period of 3 years as compared to other traditional tax saving vehicle.

• Investors are eligible for claiming Deduction up to Rs. 1.50 Lakh from there Income under

section 80C of the Income Tax Act’1961.

• Potential for Higher Returns.

• Flexibility to invest small amounts through SIP and STP

• Two benefit of Saving Tax and Capital Appreciation.

Benefits of ELSS

Scheme Name ELSS Tax Saving FD PPF

Installment Amount (Every Year) 1,50,000 1,50,000 1,50,000

Number of Installments (in Year) 15 15 15

Total Amount Invested 22.50 Lakhs 22.50 Lakhs 22.50 Lakhs

Fund Value as on (March-2014)

Approx.1.17 Crs 47 Lakhs 47 Lakhs

CAGR (%) 18.96% 8.70% 8.70%

Amount (in Rs.)

Tax Saving Investment Comparison

Particulars Without ELSS/80C

Tax Saving Investment

With ELSS/80C

Tax Saving Investment

Gross Total Income Rs.7,50,000 Rs.7,50,000

Invested under Section 80C Nil Rs.1,50,000

Net Total Income Rs. 7,50,000 Rs. 6,00,000

Tax on Net Total Income Rs.75,000 * Rs. 45,000 *

Tax Saved on Investment Nil Rs. 30,000

What’s the impact on Tax when you invest in ELSS and on the other side ignore investing in ELSS!

* Tax on Net Total Income is excluding cess @ 3%.

ELSS

Tax Implication

Provides Diversification

Risk Mitigation

Most efficient Tax Saving Scheme.

Provides Long-term Investing discipline.

Serves the purpose of both Investing Money and Saving Tax .

To Conclude….

Disclaimer: Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved. Please read Offer Documents (OD), Scheme Information Document(s) (SID) and (SAID) statement of Additional Information Document carefully. This document is for information only and is meant for the use of the recipient & not for circulation. The information contained in this document has been taken from publicly available information, trade and statistical services & other sources. While the information contained herein is from sources believed to be reliable, we do not hold ourselves responsible for its completeness and accuracy. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. Investors are expected to use the information contained in this report at their own risk. This report is not and should not be construed as an offer or the solicitation of an offer to buy or sell any securities. M/s Latin Manharlal Securities Pvt. Ltd. and its affiliates may act as market maker or have assumed an underwriting position in the secure-ties of companies discussed herein and may sell them to or buy them from customers on a principal basis.

Disciplined Investments Leads To Creation Of Wealth

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