Equity opportunity
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This document discusses the benefits of investing in mutual funds over a long period of time through systematic investment plans (SIPs). It provides examples of how a lumpsum investment of Rs. 1 lakh or monthly SIP of Rs. 10,000 invested 15 years ago in diversified equity mutual funds would have grown substantially more than the Sensex. Specific equity funds that have achieved high returns over 10 and 15 year periods are listed with their compound annual growth rates (CAGR). The document emphasizes that even during periods of market volatility, continuing one's SIP is beneficial for long term wealth creation. It suggests that investors should not wait for market conditions to become favorable before investing.
Equity opportunity
- 1. Opportunity ? A Bull market take birth from the depth of the bear trends. ? Greatest OPPOTUNITY arises out of the times of worst crisis
- 3. Opportunity : GDP > Market CAP
- 4. Macro Variables Falling Crude & Gold Prices Reduction in CAD Current Account Deficit CAD =Export - Import Appreciating Rupee Reduction in Crude/ Gold Import bill =falling Dollar * falling Crude/Gold prices Reduction in Fiscal Deficit Falling Inflation Reduction in Interest Rate Improvement in GDP GoodforDuration based DebtProducts Positive for Equity
- 6. 2004 Vs 2013 What has Happened Post SEP, 2004 ?
- 15. ??? ? Don't wait until the dust get settled ? As when the path will get clear the sensex will have already moved ahead
- 16. 15 Years of Wealth Creation Through Mutual Funds
- 17. Performance Snapshot of Lumpsum Investment Diversified equity Funds have clearly Outperformed SENSEX Diversified Equity Funds with track record of 15 years have delivered 22% CAGR Against SENSEX return of close to 12%. Lumpsum investment of Rs.1 lakh would have Grown to Rs.25 lakhs in 15 years period. (Money multiplying by 25 times). No of schemes covered: 21
- 18. Performance of Schemes With 15 Year History Avg Return of all equity funds With 15 yrs history is close to 22% (Tax Free).Even worst performing fund has given 9% tax free return.Better than Bank F.D. A s of 31 -Dec -1 2 L um ps um R eturn C A G R V a lue of R s . 1 L a c S c hem e N a m e 1 0 Y rs 1 5 Y rs 10 Y rs 15 Y rs Birla S un Life Advantage Fund - Gr 20.93 19.60 6,68,868 14,65,439 Birla S un Life Tax R elief 96 Fund - Div 21.69 27.34 7,12,113 37,53,813 DS P BlackR ock E quity Fund - R eg. Plan - Div 29.27 21.85 13,03,099 19,38,130 Franklin India Bluechip Fund - Div 26.06 33.35 10,13,382 74,97,134 Franklin India Prima Fund Gr 27.49 27.10 11,34,387 36,49,079 Franklin India Prima Plus - Div 26.68 26.26 10,64,340 33,03,595 HDFC E quity Fund - Div 29.09 28.69 12,85,068 43,97,157 HDFC Taxsaver - Div 29.11 31.87 12,87,060 63,41,472 HDFC Top 200 Fund - Div 29.34 22.78 13,10,173 21,72,273 JME quity Fund Growth Option 17.11 8.93 4,85,221 3,60,755 Morgan S tanley Growth Fund - Gr 18.24 14.99 5,34,127 8,12,645 Principal Personal Tax S aver 20.23 23.44 6,31,144 23,54,175 R eliance Growth Fund Gr 32.16 27.46 16,25,550 38,07,226 R eliance Vision Fund Gr 25.92 23.00 10,02,183 22,31,396 S BI Magnum Multiplier Plus 93 - Div 27.67 17.49 11,50,505 11,22,053 S BI Magnum Tax Gain Fund - Div 30.50 22.61 14,32,535 21,27,592 S undaram Growth Fund Gr 22.61 16.51 7,67,819 9,89,573 Tata E thical Fund - Gr 25.34 16.00 9,56,967 9,26,552 Tata Tax S aving Fund - Div 23.33 22.04 8,14,118 19,83,960 Templeton India Growth Fund Gr 25.38 18.62 9,60,025 12,95,295 UTI Top 100 Fund - Div 19.76 11.03 6,06,901 4,80,402 Avg R eturn 25.14 21.95 987884.99 2524272.42 BS E S E NS E X 19.1 11.75 574392 530286
- 19. Becoming Crorepati Through SIP SIP Amt assumed at Rs.10000 p.m. Avg Return of SIP in Last 10 Years : 17.36% CAGR Avg Return of SIP in Last 15 Years : 20.51% CAGR Value of Rs.10000 SIP in 10 Years : Rs.30.46 lakhs Value of Rs.10000 SIP in 15 Years : Rs.1.07 cr
- 20. SIP Performance A s o f 3 1 -D e c -1 2 S I P R e tu rn S I P V a lu e S cheme Name 1 0 Y rs 1 5 Y rs 1 0 Y rs 1 5 Y r s B irla S un L ife Advantage F und - G r 13.23 15.79 23,92,329 66,02,218 B irla S un L ife T ax R elief 96 F und - D iv 14.59 21.11 25,72,980 1,05,39,858 D S P B lackR ock E quity F und - R eg. P lan - D iv 21.50 22.12 37,33,902 1,15,26,279 F ranklin India B luechip F und - D iv 18.89 23.21 32,42,803 1,26,96,379 F ranklin India P rima F und G r 18.35 24.74 31,49,689 1,45,44,210 F ranklin India P rima P lus - D iv 19.75 23.16 33,96,925 1,26,40,161 HD F C E quity F und - D iv 21.42 25.97 37,17,784 1,62,24,070 HD F C T axs aver - D iv 20.42 27.52 35,22,141 1,86,20,010 HD F C T op 200 F und - D iv 21.41 23.50 37,15,774 1,30,27,460 J M E quity F und G rowth O ption 8.72 10.84 18,82,852 43,11,789 Morgan S tanley G rowth F und - G r 12.55 13.94 23,07,022 56,22,840 P rincipal P ers onal T ax S aver 14.22 18.99 25,22,467 87,40,161 R eliance G rowth F und G r 22.87 27.81 40,21,114 1,91,05,968 R eliance Vis ion F und G r 16.65 23.71 28,74,028 1,32,72,638 S B I Magnum Multiplier P lus 93 - D iv 20.15 19.55 34,71,127 91,82,510 S B I Magnum T ax G ain F und - D iv 21.54 22.06 37,41,987 1,14,65,139 S undaram G rowth F und G r 14.74 16.84 25,93,756 72,36,301 T ata E thic al F und - G r 17.85 17.99 30,65,909 80,04,062 T ata T ax S aving F und - D iv 15.20 17.28 26,58,563 75,20,599 T empleton India G rowth F und G r 17.97 20.56 30,85,806 1,00,39,314 UT I T op 100 F und - D iv 12.63 14.01 23,16,890 56,56,959 Average R eturn 17.36 20.51 3046945 10789473 B S E S E NS E X 13.93 13.99 2483599 5647188
- 21. The Journey Will Continue........
- 22. Dont Invest in Equity “As it happens, retail investors are helping markets more by staying out than by investing in equities. So from a purely selfish point of view, we (current equity market participants) do not mind if you stay away from equities. Keep your money in low interest bearing savings accounts and this will help banks raise cheap funds. Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buy HDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times and 5.9 times respectively since December 2008. Also, remember to pay all your EMI installments on time so that retail loans made by private banks do not get into trouble and we can continue do well owing their stocks. Indian retail investors are more or less completely out of equities and would rather buy gold instead. So keep buying gold so that we can do better than you by owning stocks in Titan Industries and other jewellery companies. You should not care that at all that while the gold you bought is up 2.8 times in four years, the stock of Titan Industries, which sell gold to you is up 6.9 times during the same period. If Rakesh Jhunjhunwala had bought physical gold instead of shares in Titan when he did, he would not be a billionaire today. In fact, go ahead and buy real estate, taking mortgages from HDFC and LIC Housing Finance. How else we would have made 2.8 times and 5.7 times in these stocks in five years? And when you do buy these apartment and houses, do insist on using the best construction material- cement, sanitary ware and so on. It is only because you do not buy equities and spend on real things that we could make 192% on ACC and 4.5 times on Hindustan Sanitaryware since 2008. A house is not done until it’s painted, so remember to keep a budget for decorative paints from Asian Paints (stock is up 4.8 times in four years) Why should you invest in equities when you can buy insurance products? This world is interesting precisely because we think differently from each other- while you are happy buying insurance, we are happy owning shares in companies that sell you insurance. Thanks to you, shares in Bajaj Finserve are up 6 times in value and shares in Max India are up 2 times in the past four years.
- 23. Follow your heart and we will follow you. If you like going to malls and spending time there, please do some shopping as well- some of us own shares in Phoenix Mills which is up 2.7 times since 2008. In fact, it may be times for you to upgrade your car. Why buy equities when you can spend the same money on a new car or motorcycle? Let us do the more boring job of continuing to own stocks in Maruti and Bajaj Auto which are up 2.9 and 10.8 times respectively since 2008. Why not add your name to the waiting list for an Enfield this year while we own shares in its manufacturers, Eicher Motors which is up 12 times since 2008? Life isn’t just about making and investing money; it’s important to enjoy life’s little pleasures. So go and watch a movie at the multiplex and munch some popcorn while you’re there. Meanwhile, we’ll buy shares in PVR (up 3 times in 4 years). You’d rather spend time in front of the telly? We’ll still love you- shares in Zee Telefilms and Sun are up 3 and 3.5 times because of loyal viewers such as you. Call for Pizza delivery at home. Jubliant Foodworks, which owns Domino’s, is up 5.4 times since its IPO in 2010. When you’re in mood to be sinfully self-indulgent, don’t make any resolutions to give up smoking or drinking. You may not want to invest in equities but spare a thought for investors in these stocks. Your actions so far have helped these investors make 3.8 times in ITC, 10.3 times in United Breweries and 2.2 times in United Spirits in 4 years but they still look for your continued patronage of these businesses. We wish you a very happy and healthy 2013. If, God forbid, you have to visit a hospital, remember that as stake holders in Apollo Hospitals (stock up 3.8 times) we will be thanking you from the bottom of our collective hearts. And if you do fall sick in 2013, take comfort in the fact that you are helping investors in stock of companies such as Dr.Reddy’s (stock up 4 times) and Cipla (stock up 2.3 times). We invite you over to our side in 2013 but still love you for choosing instead to be loyal customers of the businesses we own. Now it’s up to you to decide who you would rather be – part owners of Indian companies or just their loyal customers.”
- 25. Axis Triple Advantage Positve Avg Return in 17 out of 18
- 28. Debt Mutual Fund Vs Fixed Deposit
- 29. RAP READY RECKONER FOR 5 Yr SIP