Know what Mutual Funds can do for you!!

1. Mutual Funds Module Padmavati Wealth Advisors

3. What is Mutual Fund ?

4. Types of Mutual Fund

5. Benefits

6. Drawbacks

7. What is NAV ?

8. Equity As an Asset Class

9. Why to stay invested for a Long-Term ?

10. Systematic Investment Plan (SIP)

11. Power of Compounding

12. Rupee cost Averaging

13. Tax Aspects

15. Types of Mutual Funds Padmavati Wealth Advisors 4

16. Why Mutual Funds ? 5 Padmavati Wealth Advisors

18. No control over costs

19. No tailor-made portfolio

20. No assured Returns

22. Risk Return Profile Padmavati Wealth Advisors 8 Return Risk

23. 9 All time high & correction begins 22% one-day decline in US, no linkage then Start of five-year bull market Asian Crisis; Unaffected Harshad Mehta Scam Tech bull market & bust First Major Bull Market Long Term really matters!! Annual returns 17.6% for equity index BSE Sensitive Index Deep corrections do not matter for long-term investors Padmavati Wealth Advisors Figures as of July 2008; Data Source: Bloomberg; Analysis: In house

25. Longer the time frame, the greater is the reduction in risk without an impact on returnsReturns % Effective Annual Returns % Padmavati Wealth Advisors Source: Bloomberg; Analysis: as of July 31, 2008

27. SIP allows you to combine -

28. Convenience

29. Rupee Cost Averaging

30. Flexibility

31. Power of Compounding

33. Power of Compounding (An Example) 13 25 year old Preeti invests Rs.10000 annually for 10 years and stops. She does not withdraw any money. Rohit begins investing at 35 a similar amount of Rs.10000 annually. He invests for the next 25 years and he too does not withdraw any money. 76.9 lacs 24.6 lacs P.S : 1) Assumed Rate of Return: 13% CAGR 2) Its doesn’t give any guarantee of future returns Padmavati Wealth Advisors

35. Start early to reap maximum benefits 15 Value in Rs lacs Rs 1000 a-month investment till age 55 Portfolio value reckoned at age 60 Asset Allocation: Equity 70% and Fixed Income 30% Returns based on historical average. In the equity, based on the Sensex and in the Fixed income, based on the government bond yield Returns assumed 15.3% Starting age of investing From age 25, Rs 1000-a-month could deliver Rs 1.55 crore at age 60 Padmavati Wealth Advisors

36. Tax Treatment : Equity Funds Padmavati Wealth Advisors 16

37. Past Performance of Equity Schemes Source: Value Research, as on Dt 9th sept 2009 Padmavati Wealth Advisors 17

38. Back Testing Results Padmavati Wealth Advisors 18 Figures as of July 2008; Data Source: Bloomberg;

39. Rich Dad V/S Poor Dad 19 Income Statement Income Statement Balance Sheet Balance Sheet Padmavati Wealth Advisors

40. How Qualified Advisor can Make a Difference? Padmavati Wealth Advisors 20 Source: Value Research 3 Yrs CAGR Returns

41. Padmavati Wealth Advisors 21 Mutual fund investments are subject to market risks. Please read the offer document carefully before taking an investment decision. Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. There is uncertainty of dividend distribution and risk of capital loss Disclaimer

42. Happy Investing!! Padmavati Wealth Advisors Kunal Doshi +91 98334 67999 | O. 91-22-28081677 padmavatiwealth@yahoo.in