1. Systematic Investment Plan
Smart Investor’s Choice
A presentation by HDFC Mutual Fund 3 August 2018

2. “If you are born poor, its not your mistake
“If you are born poor, its not your mistake. But, if you die poor its your mistake.” Bill Gates
“I think sound investing can make you very wealthy if you’re not in too big of a hurry. And it never makes you poor, which is better.”
- Warren Buffet

3. The Investor

4. What most investors do…
Stock has gone up 5%, a hot tip, should I invest now?

5. While he was watching…
Gone up 15% now should I enter now?

6. Still waiting for the right time…
Stock up 25% since I last looked INVEST now!

7. And then the rise slows down…
See I told you so!

8. The Big fall…
I am a long term investor, it will come up eventually

9. What now…
Get me outta here!!!!

10. To believe or not to believe…
It’s a dead cat bounce

11. Where the markets are going…
People are crazy, the markets are mad!

12. The Outcome…
I give up! Equities are not for me!! They are cruel

13. Dreams

14. Human Life Cycle Phase I Phase II Phase III Education Earning Years
Child’s Marriage
Child’s Education
Housing
Child birth
Marriage
22 yrs
38 yrs
yrs
Education
Earning Years
Post Retirement Years
Age- 22 yrs
Age- 60 yrs

15. And the list goes on…………………!!!!!!!
But Reality Bites……..
Driver’s salary
Electricity Bill
Servant’s salary
Telephone Bill
Children’s education
Rent
Grocery
Bill
Credit Card Bill
And the list goes on…………………!!!!!!!

16. Yesterday and Today 1985 Balcony Ticket : Rs 15/- 2012
Inflation Meter: 12.24% p.a.
Source & Computations - Internal

17. Yesterday and Today 1985 Hotel Bill: Rs.100/- 2012
Inflation Meter: 10.90% p.a.
Source & Computations - Internal

18. Yesterday and Today 1985 2012 Petrol Price: Rs. 8 / L
Inflation Meter: 7.15% p.a
Source & Computations - Internal

19. Yesterday – Today – Tomorrow
(in Rs.)
ENGINEERING
3.2 lacs
5.0 lacs
2.4 lacs
YEAR
2000
MEDICINE
MBA
5.7 lacs
8.9 lacs
4.3 lacs
ENGINEERING
YEAR
2010
MEDICINE
MBA
10.9 lacs
17.0 lacs
8.2 lacs
ENGINEERING
YEAR
2020
MEDICINE
MBA
Inflation Meter: 6% p.a
Source & Computations - Internal

20. Amount Invested per Month in Rs
Consider a situation…
Four Investors start investing different amount at different time period
Investor
Start Date
Amount Invested per Month in Rs A
April, 1992
5000 B
December, 1997
7500 C
October, 2000
10000 D
August, 2003
15000

21. On April 30, 2009 they review their portfolios and realize these startling facts ….
The more you delay starting your investments ….
Investor A
Investor B
Investor C
Investor D
SIP Commenced on
April, 1992
December,1997
October,2000
August, 2003
Amount per SIP (Rs)
5000
7500
10000
15000
No. of Installments
204
136
102 68
Total Amount Invested (Rs)
10,20,000
Expected Returns (%) 16 20 25 35
Market Value as on April 30, 2009 (Rs)
52,16,217
38,10,887
34,52,196
31,18,442
Analysis:
Investor A portfolio is worth 67% more than investor D.
This is inspite of D investing three times more per month and earning a return of close to 20% more than investor A.
The benefit of investing early (in smaller amounts) and investing regularly far outweigh anything else: coumpound interest indeed a miracle.
…. Less is the amount of wealth created, in spite of earning a substantially higher return and investing more per month !!!

22. The Formula for creating Wealth ….
Start Early + Invest Regularly = Create Wealth
Make your money work hard for you.

23. Time in the Market…
Equities are volatile in the short-run…In the Long-term they are surprisingly predictable.

24. Closing Sensex Level on date
Sensex from to 16967
Scheme Name
NAV as on 7/01/2008
Date of Same NAV again
Closing Sensex Level on date
Current NAV
% Growth
HDFC Equity Fund
227.61
1-Dec-09
17198
10.85%
HDFC Top 200 Fund
173.74
12-Oct-09
17026
12.24%
HDFC Mid Cap Opportunities Fund
13.48
7-Apr-10
17970
15.872
17.72%
HDFC Balanced Fund
41.97
16-Oct-09
17322
57.5
36.97%
HDFC Prudence Fund
166.48
210.98
26.73%

25. Snapshot of SIP returns of various schemes as on May 31, 2012
Scheme Name
Since Inception
10 yr SIP
5 yr SIP
3 yr SIP
1 yr SIP
HDFC Equity Fund
20.83
27.39
9.04
34.81
-7.40
HDFC Top 200 Fund
22.98
27.95
10.28
30.34
-6.12
HDFC Mid – Cap Opportunities Fund
10.90
N.A
41.68
9.02
HDFC Balanced Fund
16.51
18.67
12.31
31.70
7.13
HDFC Tax Saver Fund
28.63
27.03
6.45
32.81
-3.90
HDFC Long Term Advantage Fund
25.94
25.72
5.70
31.88
-2.80
HDFC Growth Fund
20.40
25.29
8.79
30.89
-2.61