Post on 07-Apr-2018
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Systematic
Investment
PlanAn early & regular investment today,leads to a prosperous tomorrow
UTI
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UTI Mutual Fund
First Mutual Fund company in India
One of the largest Mutual Funds in the country
Assets under Management: Rs. 51,752 Crs.(Oct 07 )
20.62 20.74
29.52
35.49
45.00
51.75
0
10
20
30
40
50
60
Rs.
in'000Cr
Mar 2004Mar 2005Mar 2006Mar 2007Sep2007 'Oct2007
Incre
asedAuM
www.amfiindia.com
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UTI Mutual Fund
Wide Range of Schemes for all Needs
71 domestic schemes under Various Fund categories
Domestic Schemes & Offshore Schemes to cater towhole gamut of your investment needs
80 UTI Financial Centres (as on Nov 26, 07) International Representative offices at London, Dubai
& Bahrain
Strategic Marketing tie-up with 22 PSU Banks, select
Private Banks & India Post across the country
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India the growth story
Sustained high GDP
growth
Demographics
Consumerism Infrastructure
Focus on InfrastructureProjects
Power, Transportation focusareas
Half the population is less than 25 years old Favorable dependency Ratio
Rising Disposable Income Increase in Lending Changing Aspirations
Globally Competitive
Growing Indian MNCs Acquisitions abroad
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Indian Markets the growth story
Longest bull run in history (since May 2003)
High, visible, sustainable economic & corporate profit growth
4,467 4,617
5,934 6,194
12,61215,551 15,603
19051
April
'92
Sept
'94
Feb
'00
Jan
'04
May
'06
Jul '07 Sep-
07
16-
Oct-07
BSE Sensex Movement since April 1992
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Why Equity is a better option?
Comparative Returns vs. Inflation*
3.58.0 8.0 8.0 7.5 7.2
10.0
38.8 40
Savings
Bank
PPF PO MIS NSC PO Rec.
Dep
Gold Bank
FD
BSE
Sensex
S&P
CNX
Nifty
RoR Inflation*
* 1 year average inflation rates (Jul 2007) First Quarter Monetary Review - RBI
Inflation Rate: 5.5%
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The Indian Mutual Fund Market
Total AuM: Rs. 556,729 crs (www.amfiindia.com, Oct 2007)
Number of MF Companies in India: 32
134.75 149.25
230.92
324.60
433.83
579.81
774.92
0
100
200
300
400
500
600
700
800
A
uM:Rs.
'000cro
res
2004 2005 2006 2007 2008 E 2009 E 2010 E
CAGR: 33.7%
All AuM numbers as at 31 Mar XX in the bar chart
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The Indian Mutual Fund Market
Out of 321 million individual wage earners aged
between 18 and 59, only 5.3 million invest in mutual
funds in India (1.6%) (www.livemint.com)
The survey also reveals that 90% of the savers have
no clue about what a mutual fund is, or how they canaccess the market through the systematic investment
plan
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Systematic Investment Plan
75% of the retail equity business comes through the SIP
route
In 2005, two years ago the industry was adding about10,000 SIPs a month, today the number is 10 times
higher
SIP inflows are estimated over Rs. 400 Cr a month
It's not just the salaried class that's investing, small
corporates and SMEs, are also signing up for SIPs
*Source: www.mutualfundsindia.com
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UTI Systematic Investment Plan (SIP)
UTI Systematic Investment Plan (UTI SIP) is a
vehicle offered by UTI Mutual Fund to help you saveregularly
It is a simple, time-honored strategy designed to helpinvestors accumulate wealth in a disciplined manner
over the long-term and plan a better future for them
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Lifecycle Stages
Earning YearsEarning Years
AgeAge-- 22 yrs22 yrs AgeAge-- 60 yrs60 yrs
StageStage IIII
MarriageMarriage
Child birthChild birth
ChildChilds Educations Education
ChildChilds Weddings Wedding
HousingHousing
38 yrs38 yrs
EducationEducation Post Retirement YearsPost Retirement Years
Stage IStage I
22 yrs22 yrs
StageStage IIIIII
1010-- 20 yrs20 yrs
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Earning Years - The MostChallenging Phase
The Earning Years
Meet the current recurring expenses viz;
Rent, Electricity, Telephoneetc.
Childs education / marriage
Annual Holiday Tour
Build Capital Assets : House, Car....etc.
Make Provisions for Retirement, Medical expenses
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Impact of Inflation
100,000
76,513
58,543
44,793
34,273
26,223
20,064
Year 1 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30
Inflation Rate 5.5.%*
* 1 year average inflation rates (Jul 2007) First Quarter Monetary Review - RBI
Your Rs. 100,000 t oday w i l l be w ort h Rs. 20,000, 30 years la t er
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Benefits of Systematic Investing To the Investor
Rupee Cost Averag ing By investing an uniform amount regularly one can average out
the cost of acquisition of units, which determines your overallreturns.
You buy more units when prices are low
You buy fewer units when the prices are high
Results in averaging of the cost per unit which leads to gains
arising out of market volatility
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Benefits of Systematic Investing To the Investor
Rupee Cost Averag ing
Mr. A's SIP Investment would have accumulated to approximately 4,383.20 units,where as B's lumpsum investment would have acquired only 4,235.30 unitsThe figures of Sale Price used are hypothetical and are for illustrative purposes only.
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Benefits of Systematic Investing To the Investor
The Pow er o f Com pounding An early investor accumulates more than the one
who comes in later With fresh capital being invested at periodic intervals,
the accumulated investment increases
Rs. 1,000/- invested per month
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Benefits of Systematic Investing To the Investor
St ar t ing Ear ly , Bui lds Fut ure
22.62
11.39
X Y
@ 10% assumed rate of growth
Early Investment, Always Pays X starts investing at the age of 30yrs
He invests Rs. 1000 every monthtill the age of 60 yrs
Total Investment: Rs. 3.60 lacs
Y starts investing at the age of 40yrs
He invests Rs. 1500 every monthtill the age of 60 yrs
Total Investment: Rs. 3.60 lacs
At age 60, Xs investment would have appreciated to Rs. 22.62 L
& Ys investment would have appreciated to Rs. 11.39 L
Xs investment would have appreciated to almost double that of Y
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