SIP Presentation_New format_Dec 31, 2010

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Systematic Investment Plan

January 2011

DSP BlackRock Mutual Fund



When they say time is money, they must

mean Systematic Investment Planning



3

Life is a roller coaster ride- full of upsand downs. We all know we have to savefor many responsibilities life brings alongwith it.

But no matter how much you save- It·sNever Enough!



Introduction



5

Did you know ?

If your current monthly expenses are Rs. 30,000/- per month, then after 20 years you will require Rs. 80,000/- a month tojust maintain the same lifestyle!

An education degree for your child which currently costs Rs. 20 lakh could cost over Rs. 34 lakh after 11 years!

At inflation of 5%



6

Individual Investor Needs: Investment Goals

All individuals need to save for � Retir ement

� Child¶s education / marriage

� Medical emergency

� Other family obligations

Every individual has one or more of the above goals



7

Individual Investor: Life Stages

Earnings (Consumption + Savings)

Consumption

Savings

60

R etirement27

Young Married22

Young Independent40

Middle Age

All individuals have a finite period to save for their investment goals



8

Value of Money over time

30,000

38,288

62,368

79,599

Today 5 years 15 years 20 years

100,000

78,353

48,102

37,689

Today 5 years 15 years 20 years

Investors need to beat inflation

Value of Rs. 100,000 over timeImpact of inflation on monthly

expenses of Rs. 30,000 today

All figur es in Rs.; At inflation of 5%; Hypothetical numbers meant only for illustration purpose



9

Performance of Various Asset Classes

6.62%

8.87%

2.11%

16.97%

9.71%

WPI Inflation Bank FDs* BSE Sensex^

Growth Real Growth

Equities outperform other asset classes over the long term

Source: IIFL, Internal; *1-3 year maturity; ^excluding dividends; data as at end FY2010

Cumulative annualised returns:

1982 to 2010



10

Individual investors are scared of «

The Downside Risk in Equities The Risk of Market TimingThe Risk of Market Volatility



12

Returns are from Jan 1980- Aug 2010

Investing in the BSE Sensex

16.91%

Fixed investment on1st day of every month

16.19%

17.60%

Fixed investment at

lowest sensex valueevery year

Fixed investment at

highest sensex valueevery year

Market timing does not matter over the long term

Source: Internal; Returns have been calculated as on Aug 19, 2010



13

The Power of Compounding

Saving a small sum of money regularly in equity mutual funds can make your money work with greater power and can have a

significant impact on wealth accumulation.

BSE Sensex

Scenario A

BSE Sensex

Scenario B

Number of years 15 20

Monthly investment Rs 5000 Rs 5000

Total investment Rs 9 lakh Rs 12 lakh

Assumed annualised return 18% 18%

Final corpus Rs. 45.96 lakh Rs. 1.17 cror e

The above illustration above is merely indicative in nature and does not in any manner indicate the performance of any of the schemes of DSP

BlackRock Mutual Fund. Please read the SID and SAI carefully before investing.

Even a seemingly small 5 year delay can cost you the ¶CROR EPATI· tag

Time Period of 25 years; Hypothetical numbers meant only for illustration purpose



14

Summary

Long Term Systematic Monthly

Investment In equity schemes

is ideal for this !

Investors needs to save regularlyand invest those savings in higher

return assets to create wealth



How Do You Achieve Your Financial

Goals?



16

Retir ement corpus r equir ed to meet post r etir ement

expenses (if invested at 7%) : Rs 1.4 cr

Retirement Planning

Today At the time

of retirement

Rs 30,000

Rs 83,579

21 Yrs

Inflation 5%

Monthly investment needed to achieve this corpus in 21 years

at 12% Rs 12,583

at 15% Rs 8,083

at 18% Rs 5,090

Corpus required

per monthMonthly Household

Expenses



17

Retirement Planning

Present When your Child actually

goes for this degree

Rs 20,00,000

Rs 34,20,000

11 Yrs

Inflation 5%Monthly investment needed to achieve this corpus in 11 years

at 12% Rs 12,456

at 15% Rs 10,166

at 18% Rs 8,237

Corpus required

Educational Degree

for Child



18

Retirement Planning

Present When your Child actually

gets married

Rs 20,00,000

Rs 43,70,000

16 Yrs

Inflation 5%Monthly investment needed to achieve this corpus in 16 years

at 12% Rs 7,509

at 15% Rs 5,466

at 18% Rs 3,925

Corpus required

Child¶s Marriage



What Are The Benefits Of Investing

Through Systematic Investment Plan?



20

Benefits of Investing Systematically

The Benefit of Long Term Equity Investment� Equities give superior r eturns among all asset classes over the long ter m

� DSP BlackRock Mutual Fund has a track r ecord of consistent good perfor mance r elative to its peers

The Benefits of Systematic Monthly Investment

� Takes out the risk of market timing

� Adds the benefits of the rupee cost averaging and the power of compounding

RUPEE COST AVERAGING

� One doesn¶t have to worry about when to invest, how much to invest etc considering daily market movements, as

systematic investing r educes the risks significantly

� Eliminates the need to time your investments in equities

� Smoothens the impact of market fluctuations and hence r educes risks of investing in volatile markets

� The risk of market volatility gets negated with mor e units being purchased when the Price is low and f ewer units being

bought when the Price is high



21

Average NAV per Unit over 12 months =

(23+21+22+!9+16+17+17+20+21+19+25+24)/12

or Rs 20.34

Average Cost per Unit over 12 months =

12,000/601

or Rs 19.96

Benefits of Investing Systematically: Rupee Cost Averaging

Time (Months) Amount invested NAV per Unit (Rs) Unitspurchased

1 1,000 23 43

2 1,000 21 48

3 1,000 22 45

4 1,000 19 53

5 1,000 16 63

6 1,000 17 59

71,000 1

759

8 1,000 20 50

9 1,000 21 48

10 1,000 19 53

11 1,000 25 40

12 1,000 24 42

Total 12,000 601

Average Cost per Unit will always be lesser than the Average NAV per Unit, regardless of the

market movementsSource: Internal; Hypothetical numbers meant only for illustration purpose



22

Benefits of Investing Systematically (contd«)

Flexibility� You can choose from a wide array of schemes

� You can decide to keep invested amounts in an earlier scheme & invest futur e SIP installments

� into a new scheme

Added Convenience

� Auto debit facility across over 25 locations in India

� Regular account statements

� Redemption r equest dir ectly cr edited into your bank account



23

The First 4 Steps To PotentialWealth Creation

Select a mutual fund scheme of your

choice

Select the amount you can afford to

invest every month

Decide on the frequency withwhich you will invest

Decide the length of the investment

period

Step 1

Step 2

Step 3

Step 4



24

The Power of Compounding@12% CAGR

Invest Systematically to Benefit from the Power of Compounding

Table Illustrating the power of compounding (12% CAGR)

Monthly Investments for a

period of:

12% return per annum

5 years 10 years 15 years 20 years 25 years

2,000 1.65 Lacs 4.65 Lacs 10.09 Lacs 19.98 Lacs 37.95 Lacs


10,000 8.25 Lacs 23.23 Lacs 50.46 Lacs 99.91 Lacs 1.90 Cror e

15,000 12.37 Lacs 34.85 Lacs 75.69 Lacs 1.50 Cror e 2.85 Cror e

20,000 16.50 Lacs 46.47 Lacs 1.01 Cror e 2.00 Cror e 3.80 Cror e


50,000 41.24 Lacs 1.16 Cror e 2.52 Cror e 5.00 Cror e 9.49 Cror e

Source: Internal; Hypothetical numbers meant only for illustration purpose



25





period of:













26





period of:













DSP BlackRock Mutual Fund:

Schemes¶ SIP Performance



28

SIP returns as on Dec 31, 2010

^Benchmark.' Since inception¶ r eturns ar e calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returnsand scheme NAVs ar e for Regular Plan- Growth Option. Returns and NAV only for DSPBREF ar e for Regular Plan -Dividend Option assuming r einvestment of dividend. As on Dec 31, 2010, NAV of DSPBREF: 55.589, value of S&P CNXNif ty: 6,134.50. As on Dec 31, 2010, NAV of DSPBRTEF: 106.429, value of BSE 100: 10,675.02. SIP investment r eturnstable assumes an investment of Rs. 1000/- per month. 'Since inceptionµ r eturns calculated from the 'Star t date of SIP'(Consider ed to be the Date of Allotment). Past performance may or may not be sustained in future and should not beused as a basis for comparison with other investments.

Time Period Investment till date DSPBR Equity Fund S&P CNX Nifty

Value (INR) Value ( INR) CAGR (%) Value (INR) CAGR (%)

Last 1 Year 12,000 13,440 22.98% 13,665 26.70%

Last 3 Years 36,000 54,906 29.44% 50,410 23.14%

Last 5 Years 60,000 1,04,672 22.43% 89,427 15.97%

Since Inception 1,64,000 13,10,711 27.30% 6,02,199 17.46%

Start Date of SIP April 29,1997

Time Period Investment till date DSPBR Top 100 Equity Fund BSE 100

Value (INR) Value ( INR) CAGR (%) Value (INR) CAGR (%)

Last 1 Year 12,000 13,459 23.29% 13,390 22.15%

Last 3 Years 36,000 51,858 25.21% 50,474 23.23%

Last 5 Years 60,000 98,990 20.13% 89,251 15.88%

Since Inception 93,000 2,73,766 27.11% 2,16,008 21.17%

Start Date of SIP March 10,2003

Source: Internal



29

*Th

e Infrastructure Growth

and Economic Reforms Fund^Benchmark.' Since inception¶ r eturns ar e calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returnsand scheme NAVs ar e for Regular Plan- Growth Option. As on Dec 31, 2010, NAV of DSPBROF: 93.443, value of S&PCNX Nif ty: 6,134.50. As on Dec 31, 2010, NAV of DSPBRITF: 50.179, value of BSE 100: 10,675.02. SIP investmentr eturns table assumes an investment of Rs. 1000/- per month. 'Since inceptionµ r eturns calculated from the 'Star t date of SIP' (Consider ed to be the Date of Allotment). Past performance may or may not be sustained in future and shouldnot be used as a basis for comparison with other investments.

Time Period Investment t ill date DSPBR Opportunit ies Fund S&P CNX Nifty

Value (INR) Value (INR) CAGR (%) Value (INR) CAGR (%)

Last 1 Year 12,000 13,721 27.62% 13,665 26.70%

Last 3 Years 36,000 54,784 29.27% 50,410 23.14%

Last 5 Years 60,000 97,325 19.43% 89,427 15.97%

Since Inception 1,27,000 6,74,990 29.44% 3,96,292 20.25%

Start Date of SIP May 16,2000

Time Period Investment till date DSPBR India TIGER Fund* BSE 100


Last 1 Year 12,000 12,762 11.98% 13,390 22.15%

Last 3 Years 36,000 48,062 19.70% 50,474 23.23%

Last 5 Years 60,000 86,904 14.80% 89,251 15.88%

Since Inception 78,000 1,52,462 20.38% 1,44,365 18.71%

Start Date of SIP June 11,2004

Source: Internal




31

^Benchmark.' Since inception¶ r eturns ar e calculated on Rs. 10/- invested at inception, viz. date of allotment. All Returns andscheme NAVs ar e for Regular Plan- Growth Option. As on Dec 31, 2010, NAV of DSPBRTF: 35.518, value of BSE TECk:

4,046.7

4. As on Dec 31, 2010, NAV of DSPBRMCF: 17

.129

, value of BSE SMALL CAP:9

,67

0.31. SIP investment r eturnstable assumes an investment of Rs. 1000/- per month. 'Since inceptionµ r eturns calculated from the 'Star t date of SIP'(Consider ed to be the Date of Allotment). Past performance may or may not be sustained in future and should not beused as a basis for comparison with other investments.

Time Period Investment t ill date DSPBR Technology.com Fund BSE Teck


Last 1 Year 12,000 13,109 17.57% 14,359 38.36%

Last 3 Years 36,000 53,693 27.77% 51,363 24.51%

Last 5 Years 60,000 93,725 17.88% 82,325 12.61%

Since Inception 1,27,000 5,02,831 24.36% 3,22,829 16.70%

Start Date of SIP May 16,2000

T ime Period Investment till date DSPBR Micro Cap Fund BSE Smallcap Index


Last 1 Year 12,000 13,716 27.73% 12,586 9.23%

Last 3 Years 36,000 66,157 43.99% 54,366 28.80%

Since Inception 42,000 75,200 35.10% 60,924 21.82%

Start Date of SIP June 14,2007

Source: Internal




32

A Rupee Saved Is A Rupee Earned ±

A Long Journey Begins With A Small Step



33

DSP BlackR ock Equity Fund (DSPBR EF) is an open ended growth Scheme, seeking to generate long term capital appreciation, from a portfolio that is substantially constituted of equity

securities and equity related securities of issuers domiciled in India. DSP BlackR ock India T.I.G.E.R Fund (The Infrastructure Growth and Economic R eforms Fund) (DSPBR ITF) is anopen ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities ofcorporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing investments ininfrastructure, both by the public and private sector. DSP BlackR ock Opportunities Fund (DSPBROF) is an open ended growth Scheme, seeking to generate long term capital appreciationand whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the InvestmentFocus of the Scheme. DSP BlackR ock Top 100 Equity Fund (DSPBR TEF) is an open ended growth Scheme, seeking to generate capital appreciation, from a portfolio that is substantiallyconstituted of equity securities and equity related securities of the 100 largest corporates, by market capitalisation, listed in India. DSP BlackR ock Small and Mid Cap fund (DSPBR SMF) isan open ended equity growth scheme, primarily seeking to generate long term capital appreciation from a portfolio substantially constituted of equity and equity related securities, whichare not part of top 100 stocks by market capitalization. DSP BlackR ock Tax Saver Fund (DSPBR TSF) is an open ended equity linked savings scheme, whose primary investment objective isto seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and toenable investors avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. DSP BlackR ock Technology.com Fund (DSPBR TF) is an openended growth Scheme, seeking to generate long term capital appreciation, and whose secondary objective is income generation and the distribution of dividend from a portfolioconstituted of equity and equity related securities concentrating on the investment focus of the Scheme. DSP BlackR ock Micro Cap Fund (DSPBR MCF) The primary investment objectiveof the Scheme is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities, which are not part of the top300 companies by market capitalisation. Asset Allocations: DSPBR EF - Equity & equity related securities: 90%-100%; Debt & money market securities: 0%-10% (Debt securities/instrumentsare deemed to include securitised debts). DSPBR ITF - Equity & equity related securities: 90%-100%; Debt, securitised debt & money market securities 0%-10%; ADR, GDR & foreignsecurities: 0%-25%. DSPBROF - Equity and equity related securities: 80%-100%; Fixed income securities (Debt & money market securities): 0%-20% (Debt securities/instruments are deemedto include securitised debts). DSPBR TEF - Equity & equity related securities: 90%-100%; Debt, securitised debt & money market securities: 0%-10%. DSPBR SMF - Equity and equity relatedsecurities which are-(A) not part of top 100 stocks by market cap: 65% - 100%, (B) in the top 100 stocks by market cap: 0% - 35%; Of (A) & (B), investments in ADRs, GDRs & foreignsecurities: 0% - 25%; Debt and Money Market Securities: 0% - 10%. DSPBR TSF: Equity and equity related securities: 80% to 100%; (investments in ADRs, GDRs and foreign equity securities:0% to 20%); Debt, securitised debt and money market securities: 0% to 20% (Exposure to Securitised debt will not exceed 10% of the net assets of the Scheme). DSPBR TF: Equity & equityrelated securities: 80%-100%; Fixed income securities (Debt & money market securities): 0%-20% (Debt securities/instruments are deemed to include securitised debts). DSPBR MCF: Equityand equity related securities which are-(A) not part of top 300 stocks by market cap: 65% - 100%, (B) in the top 300 stocks by market cap: 0% - 35%; Of 1(A) & 1(B), investments in ADRs,GDRs & foreign securities: 0% - 25%; Debt and Money Market Securities: 0% - 35% (Debt securities may include securitised debt upto 10% of the net assets). Common Features: Nominationfacility available, subject to applicable conditions as per the Statement of Additional Information (SAI) and Scheme Information Document (SID). Declaration of NAV on all Business Days.Redemption normally within 3 Business Days. Sale and Redemption of Units on all Business Days at Purchase Price and Redemption Price respectively. SIP only in Regular Plan of theschemes which offer Regular and Institutional Plans. SWP and STP available in each plan of the schemes. Minimum Investment: Regular Plan ² Rs. 5,000/- ; Institutional Plan ² Rs. 1 crore.(Only for DSPBR TSF: Rs. 500/-) Entry Load: NIL. Exit Load ²Holding P eriod < 12 months: 1%, Holding period >= 12 months: NIL. (Only for DSPBR MCF: Holding Period < 12 months: 1%,Holding period >= 12 months: NIL and for DSPBR TSF: N.A). Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd.& DSP HMK Holdings Pvt. Ltd. (coll ectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSPBlackRock Investment Managers Pvt. Ltd. R isk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the

Schemes· objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Schemes can go up or down depending on the factors and forcesaffecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Schemes. Investors in the Schemes are not being offered aguaranteed or assured rate of return. Each Scheme/Plan is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. If the aforesaid point (i) is notfulfilled within the prescribed time, the Scheme/Plan concerned will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investor·sholding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. The names of the Schemes do not in any manner indicate the quality of the Schemes, their futureprospects or returns. For scheme specific risk factors, please refer the relevant Scheme Information Document. For more details, please refer the Key Information Memorandum cumApplication Forms, which are available on the website, www.dspblackrock.com, and at the ISCs/Distributors. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.

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SIP Presentation_New format_Dec 31, 2010

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