Post on 19-May-2017
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YOUR CURRENT INCOME MAY NOT MATCH LIFE’S NEEDS
Can you ignore planning and investing for your future?
BIRTH & EDUCATION
Marriage Child Car House Child’s Education
Child’s Marriage
RETIREMENT
Are your investments growing adequately to meet your future needs?
Assuming Inflation @ 6% for years 2020 and 2030
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BASIC EXPENSES WILL KEEP GROWING OVER TIME
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Your ability to save falls due to higher demands on your income. Is your investment working hard enough for you?
YESTERDAY’S LUXURIES ARE TODAY’S NECESSITIES
ITEMS 1991 TODAY
Cable TV / Dish No Yes
LCD TV No Yes
Mobile No Yes
Washing Machine / Microwave No Yes
Branded Watches / Clothes No Yes
Bike / Car / Second Car No Yes
Home Theatre System No Yes
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Mandatory expenses that make a demand on your household’s income are growing from changes in lifestyle and inflation
You need a plan to ensure that you save for the future and you put your savings to work, to meet those future goals
Do you have a plan to meet large
expenses of the future?
Are you saving enough with a
specific purpose or goal in mind?
Is your savings working hard enough
to meet those goals?
YOUR FUTURE NEEDS
THREE FACETS OF THE INVESTMENT DECISION
Mutual Funds can offer a one-stop solution for all the three questions
Invest in a diversified portfolio that is managed professionally
HOW DO YOU INVEST?
WHERE YOU
INVEST?
Invest in a mix of assets that provide income and growth
WHEN DO YOU INVEST?
Invest systematically with discipline and patience
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Your investments have to be tuned by allocating carefully across different types of assets
WHERE TO INVEST?
Each one comes with its return, risk and time horizon: – Equity offers better long term return, but higher short term volatility
– Debt offers steady income but limited long term appreciation
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A diversified portfolio across asset classes can works best
equity short term debt
long term debt
commodities gold international assets
real estate
art
Spread your risks: Diversify by asset class
No country will always be the best performer year-after-year
WHERE TO INVEST?
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A diversified portfolio across geographies can work best
Winners Rotate: Diversify by geography
“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria” – Sir John Templeton
HOW TO INVEST?
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Don’t let the cycle of market emotions rule you
HOW TO INVEST?
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Don’t let the cycle of market noise rule you
A diversified portfolio works best for investors
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HOW TO INVEST? A professional investment manager
is better equipped to take care of your investments!
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Timing can be harmful to your investment
It is tough to time the market
WHEN TO INVEST?
Perfect market timing requires: the right exit point and the right re-entry point
Getting even one of these wrong can affect returns
Mathematically, the odds are heavily against perfectly timing the market
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YOU MAY BE BETTER OFF STAYING PUT
For the 15 year period ended February 29 2012 if you had:
Stayed fully invested, your returns would be 11.12%
Missed the 10 best days, your returns would be 5.20%
Missed the 20 best days, your returns would be 1.23%
Missed the 30 best days, your returns would be -2.22%
Consider the BSE Sensex
The example given above is purely hypothetical and illustrative only since one cannot invest directly in the BSE Sensex
Example of some best days: 18 May 2009 (17.34%): UPA Victory in 15th general elections 15 June 2006 (6.89%): Impact of rebound in global equity markets following strong US and Global data 01 March 1999 (8.97%): Impact of budget by the Finance Minister Yashwant Sinha
START EARLY
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Time is your friend when it comes to investing
The earlier you start investing, the more time you give your money to grow
The earlier you start, the lesser you need to save
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STARTING EARLY CAN MAKE A DIFFERENCE TO YOUR WEALTH
Retirement corpus at age 60 assuming a return of 10%
on their investments
INR 70.4 lac
INR 2.0 crore
ALLOW TIME TO WORK FOR YOU
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Einstein called compounding the eighth wonder. Allow your savings the time to grow
The magic of compounding means that your money multiplies over time
If you invested INR 100 and it grew at a rate of 8% per year
At the end of 50 years at a simple interest of 8% you would have INR 500 (INR 8 every yr. x 50 yrs. = INR 400 as interest + INR 100 as return of principal)
4690
500
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5 10 15 20 25 30 35 40 45 50
But at a compounded rate of 8%, your money will be worth INR 4,690 after 50 years
MANTRAS FOR SUCCESS
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You need a one-point solution that enables you to define, plan and reach your goals
Understand the need to save for goals
PLAN BETTER FOR YOUR FUTURE
Set the time frame to save
Determine goal value and saving target
Monitor the progress
Motivate yourself to keep at it
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WHAT IS FAMILY SOLUTIONS?
A unique investment solution that helps
you plan for your life goals
THE NEW PARADIGM
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KEY ELEMENTS OF FAMILY SOLUTIONS
THE NEW PARADIGM
PLANNER & GOAL SHEET
APPLICATION FORM
GOAL TRACKER
ACCOUNT STATEMENT
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HOW DOES IT WORK?
THE NEW PARADIGM
Create a customized plan using the Family Solutions Planner
Submit filled up Family Solutions form and Goal Sheet to us
Receive a Welcome Letter and customized
Family Solutions Account Statement
Review and track progress of your
goals through your advisor
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2 3
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“Goal Sheet” needs to be submitted with the application form
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FAMILY SOLUTIONS PLANNER AND GOAL SHEET
Planner is available both on our website and with your advisor
INPUT Goal details, target amount, timeframe, inflation and returns expectations (that determines portfolio style)
OUTPUT Amount to invest annually / monthly / one-time to reach the goals & FT funds allocation
KEY ELEMENTS: PLANNER AND GOAL SHEET
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INPUT SCREENS
Choose to plan for either one or all of the three goals
Basic details are captured
KEY ELEMENTS: PLANNER AND GOAL SHEET
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Goal wise details entered basis your objectives / needs and
expectations
KEY ELEMENTS: PLANNER AND GOAL SHEET
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GOAL DETAILS
Goal wise output on how much to invest and which funds to
invest in
KEY ELEMENTS: PLANNER AND GOAL SHEET
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GOAL SUMMARY SHEET
KEY ELEMENTS: PLANNER AND GOAL SHEET
Option to add more goals View Goal Sheet to get your
customized plan
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GOAL SHEET (OUTPUT)
The Goal Sheet is a summary
of your goals and the
recommended plan
KEY ELEMENTS: PLANNER AND GOAL SHEET
Details of individual goals summarized on the Goal Sheet
Details of amounts to be invested for the goal are
highlighted
Recommended Funds for each of the goals are also shown
KEY ELEMENTS: PLANNER AND GOAL SHEET
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APPLICATION FORM
Facility of multiple goals in one form
Convenience of single cheque across multiple funds / goals in a form
Flexibility of investing lump-sum (regular), SIP or combination of both
Flexibility for existing FT investors to move into Family Solutions with current investments
Transaction rules on load, minimum application amount, etc. same as that at the underlying scheme level
SIP ECS form for multiple goals / schemes in each form
KEY ELEMENTS: APPLICATION FORM
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APPLICATION FORM
KEY ELEMENTS: APPLICATION FORM
Single table for multiple schemes across multiple goals
Option of Single Cheque across all funds (if lump-sum)
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ACCOUNT STATEMENT
Family Solutions details will be shown at a goal level
KEY ELEMENTS: ACCOUNT STATEMENT
Funds are segmented Goal wise as per your specific goals
Current value of the goal is available
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BENEFITS TO YOU
THE NEW PARADIGM
TO PLAN • Planner helps plan for life goals in simple,
organized and customized way
• Saves the trouble of choosing from 100s of funds with varied objectives
TO INVEST
• You fill up a single form for all your goals and pay through a single cheque
TO MONITOR
• Customized account statement gives details of goals, schemes invested in and the value of the investments
• Track the progress of your goals through your advisor anytime you wish
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RISK FACTORS
Disclaimer: Setting up the goals, planning of investment and taking informed investment decision might require professional expert advice. You are advised to consult your advisor prior to arriving at the investment decision. There is no assurance or guarantee that the goals planned for will be achieved and the same is subject to the investment performance of the schemes. Past performance of the schemes is neither an indicator nor a guarantee of future performance, and may not be considered as the basis for future investment decisions. The recommendation given above is based on the inputs provided by you regarding your anticipated rate of returns and rate of inflation, the investment goals including the target amount and investment horizon.
Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates and there can be no assurance that the schemes’ investment objectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. The names of the schemes do not in any manner indicate the quality of the schemes, their future prospects or returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus and the investment performance of the schemes. The investments made by the schemes are subject to external risks. Subscription in tax saving schemes are subject to lock-in period specified in the respective scheme information document and the investor cannot redeem, transfer, assign or pledge the units during the lock-in period.