Group 12

Financial Planning for the Age Group years

What is Financial Planning? A process of determining an individual's financial goals, purposes in life and life's priorities, and after considering his resources, risk taking ability and current lifestyle, to detail a balanced and realistic plan on 'what needs to be done' to meet those goals It varies from person to person and should be updated from time to time

Why should youngsters do Financial Planning To work towards achieving short and long term goals To ensure a secure future To provide for unforeseen circumstances To earn better returns on their funds, which would otherwise be idle

What constitutes Financial Planning Making a detailed budget of incomes and expenses Start by allocating a fixed amount to save every month Adjust budget as per execution Invest the saved money in Financial Instruments

What Financial Instruments? Equity Markets Mutual Funds Systematic Investment Plans Fixed Income Instruments Insurance Commodities Market

What determines where one invests? Financial Objectives Priorities Risk Taking Ability Ability to Monitor Investments Idleness of Funds

Thumb Rules Common sense approach to managing your finances. It cannot change your situation overnight, it is a lifelong process Events beyond your control will affect your financial planning results Set measurable financial goals Be realistic in your expectations Understand the effects of each financial decision Re-evaluate your financial situation periodically Start planning as soon as you can Realise that you are in charge

STOCK MARKET CRASHES

The Wheels of Fortune The Wheels of Fortune +12%-30% +10% +50% -3% +3% -10% -50% +12%-4% +10% +35% -11% +9% +18% +4% WHEEL 1WHEEL 2

Mutual Funds Recent Schemes and Past performance

Basics of Mutual Funds Basics of Mutual Funds

Evolution of Mutual Funds Growth of Unit Trust of India ( ) Entry of Public Sector ( ) Emergence of Private Funds ( ) Growth and SEBI Regulations ( ) Emergence of a large and uniform industry ( ) Consolidation and Growth (From 2004 onwards)

Pool their Money with Invest in Creates Passes back to Mutual Fund Operation Flowchart

Appointed by AMC Sponsor Company Mutual Fund Appointed by trustees Constituents of Mutual Fund

Why Mutual Funds? Portfolio Diversification Reduction of Risk Professional Management Liquidity

Reduction in Transaction Cost Transparency Favorable Returns Why Mutual Funds?

Net Asset Value NAV = (Market value of the assets) – (its liabilities) NAV/UNIT = Net Asset Value Number of Units Outstanding

Scheme TypePrevious NAV Latest NAV Change (Rs.) % Annual Return Standard Char Prem Open Reliance R S -Equi Open DBS Chola Opportunity Open DWS Investment Opp Open SBI Magnum Comma Open (as on 26/02/2008) Top Performers- Equity Diversified Fund

Premier Equity Fund

AMC Standard Chartered Asset Management Co. Pvt. Ltd CategoryEquity – Diversified Scheme TypeOpen Ended Net Asset SizeRs cr.(as on 31/01/2008) DividendNo Dividends Declared Yet Premier Equity Fund About the Fund

1Week1Month3Months6Months9Months1 Year 0.47 %-5.13 %0.65 %34.92 %45.13%70.80% Absolute Return (as on 26/2/2008) Premier Equity Fund NAV Performance

Assets Break-up (as on )% Equity86.95 Non Convertible Debentures9.09 Others2.17 Current Assets1.23 Cash0.55 Asset Allocation Portfolio Premier Equity Fund

52-week High (Jan 07, 08)52-week Low (Mar 07, 07) Premier Equity Fund NAV Chart

ICICI FUSION FUND

Structure5 year Close Ended Equity Diversified Scheme Investment Objective Generate long-term capital appreciation by investing predominantly in equity and equity related instruments of companies across large, mid and small market capitalization OptionsGrowth option Dividend option Benchmark IndexNifty Junior Net Assets million (January 31, 2008 ) Expense Ratio2.17% ICICI FUSION FUND About the Fund

Asset Allocation Portfolio Type of Instruments Minimum Allocation (% of Net Assets) Maximum Allocation (% of Net Assets) Risk Profile of the instrument Equity and equity- related securities 70%100%Medium to High Debt, money market instruments and call money 0%30%Low to Medium ICICI FUSION FUND

NAV Return % (Growth) 1 week1 mth3 mths6 mths1 year NAV Growth 0.20%-5.54%-2.32%7.81%24.63% NAV Return % (Dividend) 1 week1 mth3 mths6 mths1 year NAV Growth 0.21%-5.55%-2.16%7.99%24.84% December 17, 2007 Dividend 10% ICICI FUSION FUND NAV Performance

Fund Performance ICICI FUSION FUND

Performance of Indian Mutual Fund Industry

Assets Under Management

Funds Mobilized by Private Sector

An Overview

Growth of Assets under Management R s. cr o r e

A “No” Surprise Fund Funds PeriodHDFC Growth Fund (%) HDFC Equity Fund (%) HDFC Top 200 Fund HDFC Capital Builder Fund (%) HDFC Long term Advantage Fund (%) HDFC Taxsaver (%) Last 5 years Value of Rs. 1 lac invested on 01/01/ As on 31/12/2007

BE IT SMALL, BE IT BIG, INVEST EARLY, INVEST REGULARLY, BUT INVEST SMART Happy Investing In Mutual Funds

Compiled by Kinjal Mehta87 Nirav Patel97 Rashmi Soni112 Minal Thakkar113