HAVE YOU FOUND A SOLUTION FOR YOUR FAMILY S FINANCIAL GOALS?

Transcription

1 HAVE YOU FOUND A SOLUTION FOR YOUR FAMILY S FINANCIAL GOALS?

2 ARE YOU SAVING ENOUGH?

3 3 YOUR CURRENT INCOME MAY NOT MATCH LIFE S NEEDS BIRTH & EDUCATION RETIREMENT Marriage Child Car House Child s Education Child s Marriage Can you ignore planning and investing for your future?

4 4 BASIC EXPENSES WILL KEEP GROWING OVER TIME Assuming 6% for years 2020 and 2030 Are your investments growing adequately to meet your future needs?

5 5 YESTERDAY S LUXURIES ARE TODAY S NECESSITIES ITEMS 1991 TODAY Cable TV / Dish No Yes LCD TV No Yes Mobile No Yes Washing Machine / Microwave No Yes Branded Watches / Clothes No Yes Bike / Car / Second Car No Yes Home Theatre System No Yes Your ability to save falls due to higher demands on your income. Is your investment working hard enough for you?

6 6 YOUR FUTURE NEEDS Mandatory expenses that make a demand on your household s income are growing from changes in lifestyle and inflation You need a plan to ensure that you save for the future and you put your savings to work, to meet those future goals Do you have a plan to meet large expenses of the future? Are you saving enough with a specific purpose or goal in mind? Is your savings working hard enough to meet those goals?

7 7 WE ALL HAVE DREAMS FOR OUR FAMILIES But the big challenge is how do we achieve these goals?

8 FAILING TO PLAN IS PLANNING TO FAIL

9 9 THREE FACETS OF THE INVESTMENT DECISION WHERE YOU INVEST? Invest in a mix of assets that provide income and growth HOW DO YOU INVEST? Invest in a diversified portfolio that is managed professionally WHEN DO YOU INVEST? Invest systematically with discipline and patience Mutual Funds can offer a one-stop solution for all the three questions

10 10 WHERE TO INVEST? Spread your risks: Diversify by asset class real estate equity commodities short term debt long term debt art gold international assets Each one comes with its return, risk and time horizon: Equity offers better long term return, but higher short term volatility Debt offers steady income but limited long term appreciation Your investments have to be tuned by allocating carefully across different types of assets A diversified portfolio across asset classes can works best

11 11 WHERE TO INVEST? Winners Rotate: Diversify by geography No country will always be the best performer year-after-year A diversified portfolio across geographies can work best

12 12 HOW TO INVEST? Don t let the cycle of market emotions rule you Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria Sir John Templeton

13 13 HOW TO INVEST? Don t let the cycle of market noise rule you A diversified portfolio works best for investors

14 14 HOW TO INVEST? A professional investment manager is better equipped to take care of your investments!

15 15 WHEN TO INVEST? It is tough to time the market Perfect market timing requires: the right exit point and the right re-entry point Getting even one of these wrong can affect returns Mathematically, the odds are heavily against perfectly timing the market Timing can be harmful to your investment

16 16 YOU MAY BE BETTER OFF STAYING PUT Consider the BSE Sensex For the 15 year period ended February if you had: Stayed fully invested, your returns would be 11.12% Missed the 10 best days, your returns would be 5.20% Missed the 20 best days, your returns would be 1.23% Missed the 30 best days, your returns would be -2.22% Example of some best days: 18 May 2009 (17.34%): UPA Victory in 15 th general elections 15 June 2006 (6.89%): Impact of rebound in global equity markets following strong US and Global data 01 March 1999 (8.97%): Impact of budget by the Finance Minister Yashwant Sinha The example given above is purely hypothetical and illustrative only since one cannot invest directly in the BSE Sensex

17 TWO CRITICAL FACTORS TO SUCCESSFUL FINANCIAL PLANNING

18 18 START EARLY The earlier you start investing, the more time you give your money to grow The earlier you start, the lesser you need to save Time is your friend when it comes to investing

19 19 STARTING EARLY CAN MAKE A DIFFERENCE TO YOUR WEALTH Retirement corpus at age 60 assuming a return of 10% on their investments INR 70.4 lac INR 2.0 crore

20 THE MORE THE DELAY, THE MORE THE NEED TO MAKE UP 20

21 21 ALLOW TIME TO WORK FOR YOU The magic of compounding means that your money multiplies over time If you invested INR 100 and it grew at a rate of 8% per year At the end of 50 years at a simple interest of 8% you would have INR 500 (INR 8 every yr. x 50 yrs. = INR 400 as interest + INR 100 as return of principal) But at a compounded rate of 8%, your money will be worth INR 4,690 after 50 years Einstein called compounding the eighth wonder. Allow your savings the time to grow

22 22 MANTRAS FOR SUCCESS Understand the need to save for goals PLAN BETTER FOR YOUR FUTURE Set the time frame to save Determine goal value and saving target Monitor the progress Motivate yourself to keep at it You need a one-point solution that enables you to define, plan and reach your goals

23 Presenting 23

24 THE NEW PARADIGM 24 WHAT IS FAMILY SOLUTIONS? A unique investment solution that helps you plan for your life goals

25 THE NEW PARADIGM 25 KEY ELEMENTS OF FAMILY SOLUTIONS PLANNER & GOAL SHEET APPLICATION FORM ACCOUNT STATEMENT GOAL TRACKER

26 THE NEW PARADIGM 26 HOW DOES IT WORK? 1 Create a customized plan using the Family Solutions Planner 4 Review and track progress of your goals through your advisor 2 3 Submit filled up Family Solutions form and Goal Sheet to us Receive a Welcome Letter and customized Family Solutions Account Statement

27 KEY ELEMENTS: PLANNER AND GOAL SHEET 27 FAMILY SOLUTIONS PLANNER AND GOAL SHEET Planner is available both on our website and with your advisor INPUT Goal details, target amount, timeframe, inflation and returns expectations (that determines portfolio style) OUTPUT Amount to invest annually / monthly / one-time to reach the goals & FT funds allocation Goal Sheet needs to be submitted with the application form

28 KEY ELEMENTS: PLANNER AND GOAL SHEET 28 WELCOME SCREEN

29 KEY ELEMENTS: PLANNER AND GOAL SHEET 29 INPUT SCREENS Basic details are captured Choose to plan for either one or all of the three goals

30 KEY ELEMENTS: PLANNER AND GOAL SHEET 30 Goal wise details entered basis your objectives / needs and expectations

31 KEY ELEMENTS: PLANNER AND GOAL SHEET 31 GOAL DETAILS Goal wise output on how much to invest and which funds to invest in

32 KEY ELEMENTS: PLANNER AND GOAL SHEET 32 GOAL SUMMARY SHEET View Goal Sheet to get your customized plan Option to add more goals

33 KEY ELEMENTS: PLANNER AND GOAL SHEET 33 GOAL SHEET (OUTPUT) The Goal Sheet is a summary of your goals and the recommended plan

34 KEY ELEMENTS: PLANNER AND GOAL SHEET Details of individual goals summarized on the Goal Sheet Details of amounts to be invested for the goal are highlighted Recommended Funds for each of the goals are also shown

35 KEY ELEMENTS: APPLICATION FORM 35 APPLICATION FORM Facility of multiple goals in one form Convenience of single cheque across multiple funds / goals in a form Flexibility of investing lump-sum (regular), SIP or combination of both Flexibility for existing FT investors to move into Family Solutions with current investments Transaction rules on load, minimum application amount, etc. same as that at the underlying scheme level SIP ECS form for multiple goals / schemes in each form

36 KEY ELEMENTS: APPLICATION FORM 36 APPLICATION FORM Single table for multiple schemes across multiple goals Option of Single Cheque across all funds (if lump-sum)

37 KEY ELEMENTS: APPLICATION FORM 37 SIP ECS FORM Single ECS form for upto 4 schemes

38 KEY ELEMENTS: ACCOUNT STATEMENT 38 ACCOUNT STATEMENT Family Solutions details will be shown at a goal level Funds are segmented Goal wise as per your specific goals Current value of the goal is available

39 THE NEW PARADIGM 39 TO PLAN Planner helps plan for life goals in simple, organized and customized way Saves the trouble of choosing from 100s of funds with varied objectives BENEFITS TO YOU TO INVEST You fill up a single form for all your goals and pay through a single cheque TO MONITOR Customized account statement gives details of goals, schemes invested in and the value of the investments Track the progress of your goals through your advisor anytime you wish

40 ARE YOU READY FOR THE NEW PARADIGM? PRESENTING FAMILY SOLUTIONS

41 41 RISK FACTORS Disclaimer: Setting up the goals, planning of investment and taking informed investment decision might require professional expert advice. You are advised to consult your advisor prior to arriving at the investment decision. There is no assurance or guarantee that the goals planned for will be achieved and the same is subject to the investment performance of the schemes. Past performance of the schemes is neither an indicator nor a guarantee of future performance, and may not be considered as the basis for future investment decisions. The recommendation given above is based on the inputs provided by you regarding your anticipated rate of returns and rate of inflation, the investment goals including the target amount and investment horizon. Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates and there can be no assurance that the schemes investment objectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. The names of the schemes do not in any manner indicate the quality of the schemes, their future prospects or returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus and the investment performance of the schemes. The investments made by the schemes are subject to external risks. Subscription in tax saving schemes are subject to lock-in period specified in the respective scheme information document and the investor cannot redeem, transfer, assign or pledge the units during the lock-in period.