Académique Documents
Professionnel Documents
Culture Documents
Builds
Investment
Discipline
:
Creates a habit of regular savings
Affordable & Convenient : Allows for
early investments in small amounts
Helps in compounding your wealth
Safegurads against market
volatality through Rupee Cost
Averaging
Safeguards against inflation as long
term returns from equity is generally
higher than average inflation rate
Illustration 1:
Rs 1,000 invested every month for 30 years would make your investment at
Rs.3,60,000.
This amount may not be available with you one time but can be invested
through small amounts over a period of time. Small amounts invested
regularly can grow into a substantial lumpsum.
This illustration shows how the Power of Compounding and Rupee Cost
Averaging helps an amount of Rs.3.6 Lacs invested in small amounts over
a longer period of time, grow to Rs 62 lacs and Rs 23 Lacs depending on
the annual rate of return of 15% and 10% respectively.
If you were to invest Rs. 5,000 per month. The table shows returns
generated at different rates when invested at different times in your life. We
have assumed that the investment matures at the age of 60 years.
Indicative rates of return of 14% & 12% have been taken for calculation of
returns
Return at 14%
Age
Amount at Maturity
25
Rs. 4,42,21,463
30
Rs. 2,27,48,352
35
Rs. 1,15,95,892
Return at 12%
Age
Total Investment
Amount at Maturity
25
Rs. 2,72,95,158
30
Rs. 1,52,60,066
35
Rs. 84,31,033
Month
Amount
NAV
Units
100
10
10
100
9.4
10.64
100
10.6
9.43
Total
300
9.98 **
30.07
**
The purchase of Mutual Fund units at regular intervals
ensures the averaging out of your investment.
Regular investments also safeguards against the volatality
prevailing in the markets at that point of time
Rupee Cost Averaging reduces the average Cost of Purcahse
to Rs. 9.98 per unit.
* The illustrations given are indicative and should not be construed as investment advice
SIPs
follow
the
principle
of
Averageing your purchase and
Compounding of Returns
SIPs are longer term investments
and have a tendency of giving
positive returns over a longer
period of time
SIPs focus on consistent and
continous investments Fixed
amount for fixed period of time to
safeguard from market volatality
SIPs Impart discipline in investing
most needed quality for a long
term wealth creation
SIPs are simple & quick Hassle
free investments with one time
instruction
Law of Averaging at work Rupee
Cost Averaging at its best
SIPs
make
investing
more
affordable
Email : Servicedesk@finedge.in
Phone: 011-45072800