SIP Presentation 29 Nov 07

8/4/2019 SIP Presentation 29 Nov 07

1/18

Systematic

Investment

PlanAn early & regular investment today,leads to a prosperous tomorrow

UTI


2/18

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


3/18

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


4/18

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


5/18

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


6/18

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%


7/18

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


8/18

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


9/18

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


10/18

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


11/18

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


12/18

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


13/18

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


14/18

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


15/18


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.


16/18


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


17/18


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


18/18

SIP Presentation 29 Nov 07

Documents

Transcript of SIP Presentation 29 Nov 07