ACHIEVING
YOUR
GOALS
IN LIFE
Let us first look at the important goals in our lives
20 Years
What is the Average Age when a child needs Higher Education?
What is the Average Cost ofHigher Education Today?
Engineer : Rs.10 LacsMedical : Rs.15 LacsForeign Study : Rs.25 Lacs
Assuming Current Age is 3 years: (17 yrs remaining)Engineer : Rs.27 LacsMedical : Rs.41 LacsForeign Study : Rs.67 Lacs
How much would the Higher Education cost you at the maturity?
Assuming inflation @ 6%
Assuming Current Age is 3 years: (17 yrs remaining)Engineer : Rs.27 LacsMedical : Rs.41 LacsForeign Study : Rs.67 Lacs
Are you on the right path to providegood education for your child?
Assuming inflation @ 6%
24 Years
What is the Average Age when a child gets married?
What is the Average Expenses ofMarriage Today?
Rs.10 Lacs
How much would your child’s Marriagecost you at maturity?
Assuming inflation @ 6%. Current Age is 3 yrs & Marriage Age is 24 yrs.
Rs.34 Lacs
Rs.34 Lacs
Are you on the right path to arrangea decent marriage for your child?
Assuming inflation @ 6%. Current Age is 3 yrs & Marriage Age is 24 yrs.
What is the Average Retirement Age?
60 Years
Rs.10,000/- p.m.
What is an Average Monthly Expense of a Middle-class House Hold?
How much Retirement Kitty would you need at Retirement?
Rs.2.20 Crores
Current Age: 28 years. Retirement Age - 60 yrs. Life Expectancy - 90 yrs. Assuming inflation @ 6%. Returns on Retirement Kitty – 6%
Monthly Expenses would grow from Rs.10,000/- now to over Rs.64,500/- at Retirement & would continue to growth thereafter…
Are you on path to a Peaceful Retirement?
Rs.2.20 Crores
Current Age: 28 years. Retirement Age - 60 yrs. Life Expectancy - 90 yrs. Assuming inflation @ 6%. Returns on Retirement Kitty – 6%
Brief Look at Our Life Goals
Assuming: Current AgeSelf : 28 yrs Child: 3 yrs
Child Education : 20 yrsEngineer : Rs.27 LacsMedical : Rs.41 LacsForeign Study : Rs.67 Lacs
Child Marriage : 24 yrsMarriage : Rs.34 Lacs
Retirement: : 60 yrs (Self)Retirement Kitty : Rs.2.20 Crores
Are we on Track to Achieve the Critical Life Goals in our Lives?
Creating wealth successfully in Over time can help us fulfill all our goals!!
Rs.5,000/- p.m.
How much can a personsave on a regular basis?
Creating Wealth
If a person can save Rs.5,000/- per monthWhat will be his wealth when he retires?
Assuming: Current Age: 28 yrs. Retirement Age: 60 yrs.
Invests in an Asset class than gave returns of 8%
Creating Wealth
At Age 60 his wealth would have been
Rs.84 Lacs
Amount Invested: Rs. 19.20 Lacs. Times amount gets rolled over: 4.37.Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.
The Truth
Creating Wealth is Easy
We can all Become Wealthy
We Need to Create Wealth
How can we create wealth?
Start Saving Early
The longer you save, the more you make
Save in the Right Asset Class
This will dictate how much wealth you create …
Save Regularly
Even a small amount saved regularly, is good
2.47 Crores*
19.55 Crores*
40 years25 years 60 years
Ram Shyam
Investment Starting Age 25 40
Investment - Monthly SIP Rs.5,000/- Rs.10,000/-
Saving Years till age 60 35 years 20 years
Total Investment Made Rs.21 lacs Rs.24 lacs
Starting Early
Give time to your investments rather than timing
* Constant Savings
Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.
Equity market (represented by BSE Sensex) has outperformed all other investment avenues
Selecting Right Asset Class
Twin Benefits of Investing Regularly
Disciplined Investing through Systematic Investment Plans (SIPs) is the ideal way to reduce risk
Rupee Cost AveragingAverage Purchase cost
will be less
Automatic TimingAt higher prices - less unitsAt lower prices – more units
Rising Market Falling Market
Market Units Purchased MarketUnits Purchased
Save Regularly
If a person can save Rs.5,000/- per monthWhat will be his wealth when he retires?
Assuming: Current Age: 28 yrs. Retirement Age: 60 yrs.
Invests in an Asset class than gave returns of 20%
Creating Wealth
At Age 60 his wealth can be
Rs.11.30 Crores
Amount Invested: Rs. 19.20 Lacs. Times amount gets rolled over: 58.86.Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.
In past 32 years BSE Sensex has given approx. 18% returns
Past Performance
Year Sensex Investment Rs.
1979 100 1 Lacs
This is in spite of …
• Two wars• At least three major financial scandals• Assassination of 2 prime ministers
• At least 3 recessionary periods• 10 different governments and• An unfair share of natural disasters
2011 19445.22 1.93 Crores
*As on 31th March, 2011
Risk factors: Mutual Fund investments are subject to market risks. Past performance may or may not be repeated in future. Please read the offer document carefully before investing.
Investing in the BSE Sensex – 28 years
Market timing does not matter over the long term
16.02%
Fixed investment on 1st day of every month
16.90%15.07%
Fixed investment athighest sensex value
every year
Fixed investment atlowest sensex value
every year
Data source: ICRA MFIE
Give Time rather than Timing the Equity market
Wisdom
• The Right way to create wealth …
Buying potential big winning stocksSuccessfully timing the marketsFollowing Expert Advisors recommendationsSaving a lot of money
• Wealth can be successfully created if we follow the three principles ...
Starting early and saving for longInvesting in the right asset classInvesting Regularly – big or small
“We do not need to be wealthy to be an investor …But we can be wealthy if we are investors”
Using the Wisdom
• We all have goals and objectives in life to achieve like …Child EducationChild MarriagePurchase of House, CarRetirement, etc
• We can direct our savings to achieve our goals!!
Disciplined Savings
Sufficient Time
Right Asset Class
Goal Achievement
Child Education - Saving years: 17 yrs
Helping you achieve your goals in life …
Education Target GAP Amt.
Engineer Rs.27 Lacs Rs.2,000
Medical Rs.41 Lacs Rs.3,000
Foreign Study` Rs.67 Lacs Rs.5,000
Child Marriage - Saving years: 21 yrs
Target : Rs.34 LacsGAP Amount : Rs.1,500
Assuming returns of 20%. GAP figures are rounded off .
Amount Actually paid: 3.78 Lacs
Amount Actually paid: 4.08 Lacs (for 2,000)
Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.
Retirement - Saving years: 32 yrs
Target : Rs.2.20 CroresGAP Amount : Rs.1,000
Helping you achieve your goals in life …
Assuming returns of 20%. GAP figures are rounded off .
Amount Actually paid: 3.84 Lacs
Small monthly investments of few thousand rupees can help you Achieve your goals & Relax in life!
Note: The above figures are for illustrative purpose only. There is no guarantee that the projection given would materialize.
Disclaimer:The above presentation is for private circulation only. This is for information purpose only and is not intended to be and must not be taken as the basis of any investment decision. Nothing in this presentation should be construed as an investment advice ,and/or as an advice to buy or sell or solicitation to buy or sell any mutual fund / schemes. NJ IndiaInvest has taken due care & caution in preparing this presentation and the information has been taken from various sources. However, NJ or any of its employees, Partners, do not take any responsibility or liability, expressed or implied, whatsoever, for any investment decision made or taken on the basis of this presentation. The viewers are strongly advised to seek expert professional help before making any decisions. The presentation contents returns / performance figures which are for illustrative purpose only. There is no guarantee that the projection given would materialize. NJ IndiaInvest or any of its employees or Network Partners cannot be held responsible for any performance or non-performance of the illustrations / projections depicted in this presentation. Risk Factors: Mutual funds and securities are subject to market risks and there can be no assurance and no guarantee that the objectives of Mutual Fund schemes invested in can be achieved. As with any investment in securities, the NAV of the units issued under the Scheme (s) can go up or down, depending up on the factors and forces affecting the capital markets. Past performance of the Sponsor/AMC/ does not indicate or guarantee the future performance of the Scheme(s) of any Mutual Fund. Investors are therefore urged to read the Offer Document (s) carefully, and consult their legal/tax/investment advisor before they invest in the scheme(s). Investors in the scheme(s) are not being offered a guaranteed or assured rate of return or monthly or regular/periodical income distribution, and the actual returns and/or periodical income distribution to an investor will be based on the actual NAV, which may go up or down, depending on the market conditions. Kindly refer to the Offer Document of the respective schemes carefully prior to investing.
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