SIP+INSURE by shimeiyan4

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									Reliance SIP
Insure
“A unique facility to Save, Grow &
Insure”




                A Reliance Capital company
What Rs 2000 p.m can get you….



     A sumptuous luxurious dinner for your family

                Visiting your nearest relative place


                          Buy your monthly grocery

    Make you a Millionaire* & also get you free life
                 insurance on your SIP installments
 *please refer slide 3 for more details
What does it take to create wealth…

                                                                                                                Investing Rs 2400 per
                                                                                                                 month @ 10% p.a for
                                                                                                                 15 yrs makes you a
                                                                                                                     Millionaire
            Value /Yrs                      3                   5                   10                 15
                    5,00,000       12,000                7000               2,500                1,200
                   10,00,000       23,800                13,000             4,900                2,400
                   25,00,000       60,000                32,500             12,200               6,000

                   50,00,000       1,20,000              64,500             24,300               12,000
                  100,00,000       2,38,000              1,30,000           48,500               24,000
      The table shows the SIP amount required to be invested per month for achieving the target amount in
      the specified time period. The hypothetical rate of return on the investments is assumed at 10% p.a.




This is just an illustration, explaining the power of compounding concept and should not be assumed as a promise, guarantee or forecast on
minimum returns and safeguard of capital. SIP does not assure a profit or guarantee protection against loss in a declining market. The
calculation shows the outcome of investing a specified amount at a certain assumed rate of interest per annum.
Most likely reasons to invest…..


   Child‟s Education

         Child‟s Marriage

                 Housing

                       Retirement

                              Safety



     Everyone has one or more of the above reasons to invest for!
7 Successful habits of investing



   Start early

    Don’t time the market

                                       Would you like
   Prudent Asset allocation           to guess the
                                       8th habit that
   Invest regularly
                                       we got for
   Understand the risk reward ratio   you?
   Have a set investment objective

   Invest for long term
        Insure your financial goals…..




Before we know more about this product….let us understand
            the investment climate around us!
           Value of Money over time

                              Impact of Inflation on monthly expenses of Rs 20,000

                     60,000
                                                                                                  53,066

                     50,000
Monthly Exps in Rs




                                                                                      41,579
                     40,000
                                                           32,578
                     30,000                    25,526
                                  20,000
                     20,000

                     10,000

                        -
                                   Today      5 years     10 years                    15 years   20 years
                                                       –                 Value of Rs 1 lac over time
                                            InflationPeriodA Devil, we need to beat it!
                                                                                       120,000
                                                                                                 100,000
                                                                                       100,000
                                                                                                            78,353
                                                                     Value of Money




                                                                                        80,000
                                                                                                                      61,391
                                                                                        60,000                                   48,102
                                                                                                                                            37,689
                                                                                        40,000

                                                                                        20,000

                     Inflation @ 5% p.a                                                    -
                                                                                                 Today      5 years   10 years   15 years   20 years
                                                                                                                       Period
Where do people save their money?




                              Real Estate, 5
                                                    Chit fund/NBFC,
           Equity market, 1.1                              9.4
            Mutual Fund, 1.2                                  Gold, 5.8

 Life insurance, 32.8




                                                                          Banks, 44.9

                        Postal Savings,
                             11.6



 Source: Invest India Incomes and Savings Survey 2007**
                        Mutual Fund as an Asset Class has a very low penetration
Long Term Investing    –      Case Studies




                 Invest Systematically…..




                         Its not the timing
              but the time in the market which matters
Invest Long term…
 Money grows over a period of time…
               Rs 1000 invested at 8%p.a every month for…




                                                          Power of Compounding

                                                                                                         592,947
                                600,000
                compounding
                 Amount after




                                500,000
                                400,000                                                 348,345
                                300,000                                                            240,000
                                                                   184,166        180,000
                                200,000                     120,000
                                          60,000 73,967
                                100,000
                                    -
                                                5 yrs             10 yrs               15 yrs           20yrs
                                                                           Period

                                                                      Principal    Amount

                                 … just like a rolling snowball gathers snow & grows.
                                  This is an hypothetical illustration to explain the concept of “Power of Compounding”.
                                                                 Past Performance may or may not be sustained in future.
It always pays to start early &
save for retirement


                                               A holds for                                             B holds for
                                                30 years                                                20 years
                                                                 Start Early
            Amount at the Age of




                                                                 1,488,603
                                   1,500,000

                                   1,000,000                                                          689,511
                    60




                                    500,000            120,000                          120,000
                                        -
                                                             A                                    B
                                                                    People Who have invested
     A & B invest Rs. 2000 every month, earning interest @ 8% p.a. on a monthly
      compounding basis
     A starts at the age of 25 yrs, while B starts investing at the age of 35 yrs
     Both of them invest for 5 yrs ( Rs. 1.2 lacs) and hold their investments till 60
      yrs. of age
     A’s investment appreciated to over Rs.14,88,603 while B’s investment grew to only
      Rs. 6,89,511
                                                                    Only an illustration to explain the power of compounding.
& Don’t Time the Market…



  Scenarios                                  Investor buys     Investor buys    Investor buys at
                                             at Market Peaks   at Market Lows   constant interval

  BSE Sensex                                      16.69%           23.09%             19.12%

  BSE 100                                         17.64%           24.73%             20.58%

  Reliance Growth Fund-Retail Plan- Growth        36.65%           42.13%             38.28%
  Plan – Growth Option* (RGF)

  Reliance Regular Savings Fund-Equity            27.16%           47.92%             36.03%
  Option- Growth Plan * (RRSF- EQ)



 Rs 10,000 invested every year for a period of 12 years in RGF from Jan 96 to April 08 & in RRSF- EQ for
                              a period of 3 years from June 05 to April 08




  Past Performance may or may not be sustained in future.
  *Returns as on 30th April 08
Past Performance of SIP in
Reliance Growth Fund
         SIP
     Installment                                                                             Since
        /Yrs                    3                     5                       10             Inception
                            1,13,343              3,71,043               24,21,367              44,37,506
        2,000
                            1,10,926              2,77,311                9,09,328              12,75,183
                            1,70,015              5,56,565               36,32,051              66,56,260
        3,000
                            1,66,390              4,15,967               13,63,992              19,12,775
                                                                                                                     RGF
                            2,83,359              9,27,609               60,53,419             1,10,93,766
        5,000                                                                                                        BSE
                            2,77,317              6,93,279               22,73,320              31,87,958            100
                            5,66,718             18,55,218.             1,21,06,839            2,21,87,533
        10,000
                            5,54,634             13,86,559               45,46,641              63,75,917
                            8,50,078             27,82,827              1,81,60,258            3,32,81,300
        15,000
                            8,31,951             20,79,838               68,19,962              95,63,875
  Inception Date: 8th Oct 1995. Returns are of Retail Plan- Growth Plan – Growth option as on 30th April 08
  Past Performance may or may not be sustained in future.
  The above table shows the historical SIP performance of Reliance Growth Fund (Retail Plan – Growth Plan – Growth
  option) vis its benchmark BSE 100.
  For example; A person who had made an SIP of Rs 5000 p.m in the above fund since inception on 8th Oct 1995 would have
  invested Rs 7.55 lacs by 30th April 08 and have earned a total amount of Rs 1.10 crs (As per the highlighted cell)
Make the right choice….



      Simple, straightforward way to
       create long term wealth             The alternative is to :


            Understand and embrace           Follow markets very closely
             risk
                                              Time your entry and exit very
            Put time on your side
                                               well
           The choice is yours to make………..
             Invest systematically
                                              Select your stocks judiciously
            Don’t worry about market
            timing                           And hope that you get it right

            A tried & tested method           more

                                             often than not!
Systematic Investment Plan (SIP) &
its benefits
SIP is a long term investment technique under which you invest a fixed sum of
   money
on a monthly or quarterly basis in a mutual fund scheme at the prevailing NAV.




This allows you to save and invest regularly while you are earning.

                                                          Protects           Improves
                                                       against market       probability
                                          Helps           volatility          of better
                                    averaging cost                            returns
                   Eliminates
                                     of investment
                    need for
                     timing
  Inculcates        markets
 savings habit
Here comes the most sought after product……..



                                            Do you want an
                                              investment
       Are you looking at
                                          technique which can
     investing for the long
                                            make you invest
            term??
                                              regularly??



                                 Choose
                                   then
                               Reliance SIP
                                  Insure

         Do you want a free
           life insurance
                                                  Do you want your
               cover??
                                               planned investments to
                                               be completed after your
                                                 unforeseen death??
“A unique facility to Save, Grow & Insure”
Investor Benefits- “Save, Grow & Insure”


 Free Life Insurance Cover-
 Enjoy Insurance on SIPs

                                 Ensuring that the planned
                                investments are completed

                                                             Market Linked NAV
                                                              based maturity
                                                                 proceeds
        Why Reliance SIP Insure ?


                                                             Eliminates need for
                                                               timing markets

                                     Helps averaging
    Inculcates savings              cost of investment
           habit
Reliance SIP Insure- What is it?


 An add-on feature of life insurance cover under a Group Term Insurance provided to
 individual investors with a view to encourage individual investors to save and invest regularly
 through Systematic Investment Plan (SIP) and help them achieve their financial objective
 without any extra cost.


 Objective:
 In the unfortunate event of death of an investor before completing the opted SIP tenure, the
 balance amount towards the SIP installments remaining unpaid shall be made good from the
 life insurance cover and the nominee* would be able to continue in the scheme without
 having to make any further contribution




  *Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding
Reliance SIP Insure – Product Features

                  All individual investors enrolling for investments via SIP and opting for „Reliance SIP
                   Insure‟
 Eligibility      Only individual investors whose completed age at entry is greater than 20 years and
                   less than 46 years.
                  In case of multiple holders in the any scheme, only the first unit holder will be
                   eligible for the insurance cover.

  Investment Details

 Minimum Investment per installment : Rs.2000 per month. There is no upper limit
 Minimum Period of Contribution : 3 years and in multiples of 1 year thereafter.
 Maximum Period of Contribution : 15 years OR till attaining 55 years of age, whichever is
  earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The
  insurance cover ceases when the investor becomes 55 years of age.
 Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated
  Cheques shall not be accepted )
Reliance SIP Insure – Product Features

Load Structure
   The Entry Load under Reliance SIP Insure shall be same as applicable to normal purchase
    /additional purchase transactions.
   However, there will an Exit Load of 2%, if the accumulated units acquired or allotted under
    Reliance SIP Insure are redeemed or switched out to another scheme before the maturity of
    SIP tenure as opted in the respective scheme either by the SIP-Insure unitholder or by the
    nominee, as the case may be.
   In the event of the death of the unitholder, if the Nominee chooses to redeem the outstanding
    balance of units before completing the opted SIP tenure the repurchase of units shall be
    subject an exit load of 2%
   However, if the units are redeemed on completing the opted SIP tenure, there will not be any
    exit load in the respective scheme.
Reliance SIP Insure – Product Features

Commencement of Insurance Cover: The Insurance cover shall commence after “waiting period” of 90
days from the commencement of SIP installments. However the waiting period will not be applicable in
respect of accidental deaths.
Amount of Life Insurance Cover Available
   An amount equivalent to the aggregate balance of unpaid SIP installments, subject to a
    maximum of Rs.10 lakhs per investor across all schemes / plans and folios
   This amount will be invested in the Nominee‟s account, in the same scheme/s under which
    the deceased investor has enrolled for SIP
   The investment will be at the applicable price based on the closing NAV on the date on
    which the cheque for insurance claim settlement is received by the AMC from the insurance
    company, subject to completion of requisite procedure for transmission of units in favour of
    the nominee.
Reliance SIP Insure–How does this work?



                                        An investor does a monthly SIP of Rs. 10,000 for 5 years
                                        in Reliance Growth Fund


                                        If he dies after a period of 3 yrs, then his
                                        Sum Assured= Unpaid SIP installments
                                                       = 2 yrs ( 5 yrs-3 yrs) X 12 months X 10, 000
                                                       = Rs 2,40,000



  This amount will be paid by life insurance company to SIP investor‟s nominee account * with
  Reliance Mutual Fund and will be invested in Reliance Growth Fund (in the same scheme in
  which the deceased has earlier invested)



  *Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding
Reliance SIP Insure – Product Features

     One can aim to have a target insurance cover as per one‟s requirement by referring to the matrix
     attached below
      Life Insurance
          Cover/Yrs                                 3                         5                        10               15
                1,000,000                     27,778                  16,667                       8,334             5,556
                    900,000                   25,000                  15,000                       7,500             5,000
                    800,000                   22,222                  13,333                       6,667             4,444
                    700,000                   19,444                  11,667                       5,833             3,889
                    600,000                   16,667                  10,000                       5,000             3,333
                    500,000                   13,889                     8,333                     4,167             2,778
                    400,000                   11,111                     6,667                     3,333             2,222
                    300,000                    8,333                     5,000                     2,500             1,667
                    200,000                    5,556                     3,333                     1,667             1,111
                    100,000                    2,778                     1,667                        833              556
      Cells in yellow would not be applicable under Minimum SIP amount category under Reliance SIP Insure Facility


    The table shows the SIP amount per month to be invested for the required combination of Eligible Insurance
    Cover & Tenure. For example, to have a maximum cover of Rs 10 lacs at the time of registration in Reliance SIP
    Insure Facility, one can invest Rs 5,556 p.m for a period of 15 yrs as per the cell highlighted in pink.
Reliance SIP Insure – Product Features

   If the aggregate total of SIP installments remaining unpaid under all schemes is less than
    or equal to Rs. 10 Lakhs, then the life insurance cover shall be equal to the actual unpaid
    balance in the respective schemes.
   If the aggregate total of SIP installments remaining unpaid under all schemes is greater
    than Rs. 10 Lakhs & all the SIPs start on the same date, then the life insurance cover shall
    be equal to   Rs. 10 Lakhs, which shall be allocated / invested proportionately in the
    respective scheme folios.
   If the aggregate total of SIP installments remaining unpaid under all schemes is greater
    than Rs. 10 Lakhs & all the SIPs start on the different dates, then the life insurance cover
    shall be equal to Rs. 10 Lakhs, which shall be allocated / invested on First in First out
    basis in the respective scheme folios.
Reliance SIP Insure – Product Features

Eligible schemes
       Reliance Growth Fund - Retail Plan
       Reliance Vision Fund - Retail Plan
       Reliance Equity Opportunities Fund - Retail Plan
       Reliance Equity Fund - Retail Plan
       Reliance Equity Advantage Fund- Retail Plan
       Reliance Regular Savings Fund – Equity option
       Reliance Regular Savings Fund – Balanced option
       Reliance Banking Fund
       Reliance Pharma Fund
       Reliance Media & Entertainment Fund
       Reliance Diversified Power Sector Fund – Retail Plan
Reliance SIP Insure – Expiry of the policy


 The insurance cover shall cease upon occurrence of any of the following:
    At the end of mandated Reliance SIP Insure tenure, i.e., upon completion of payment of all
     the monthly installments as registered.
    Discontinuation SIP installments midway by the investor i.e., before completing the opted
     SIP tenure /installments.
    Redemption / switch-out of units purchased under Reliance SIP Insure before completion
     the mandated SIP tenure / installments
    In case of default in payment of two consecutive monthly SIP installments or four separate
     occasions of such defaults during the tenure of the SIP duration chosen.
Reliance SIP Insure –
Exclusions for Insurance cover
No insurance cover shall be admissible in respect of death of the SIP-Insure unitholder (the
insured person) on account of -
   Death due to suicide
   Death within 90 days from the commencement of SIP installments except for death due to
    accident.
   Death due to pre-existing illness, disease(s) or accident which has occurred prior to the
    start of cover.
Reliance SIP Insure – Documentation

It is mandatory for each investor to sign and submit the following documents under this facility;
   Application Form
   ECS/ Direct Debit Form
   Personal Statement of Health
   Authorization Mandate (which forms a part of application form)




           For our existing investors there is no need to give the first SIP cheque
Reliance SIP Insure – Snapshot
 Reliance SIP Insure facility is an add on feature of life insurance cover under Group Term Insurance to
  individual investors opting for SIP in the designated schemes.
 Reliance SIP Insure provides free life insurance cover to investors at no extra cost. In the unfortunate

  event of the death of an investor during the tenure of the SIP, the life insurance company will pay for the
  balance amount towards the remaining unpaid SIP installments. An amount equivalent to the aggregate
  balance of unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes
  /plans and folios will be invested in the Nominee‟s account
 The said facility is provided in selected equity schemes of Reliance Mutual Fund

 Only individual investors whose completed age is greater than 20 years and less than 46 years at the

  time of investment.
 In case of multiple holders in the any scheme, only the first unit holder will be eligible for the insurance

  cover.
 Minimum Investment per installment: Rs.2000 per month & in multiples of Re 1 thereafter. There is no

  upper limit
 Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.

 Maximum Period of Contribution: 15 years OR till attaining 55 years of age, whichever is earlier (e.g., a

  person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The insurance cover ceases when
  the investor attains 55 years of age.
 Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated Cheques shall not

  be accepted )
                          The group term cover will be approved only after underwriting acceptance of the Personal Statement of Health
Invest India Incomes and Savings Survey 2007
**The Survey consisted of two components:
1. Complete household listing (over one million households) from randomly selected 1815 wards covering
852 towns and 931 villages, and
2. 96,088 representative individual respondent interviews (urban sample 72,979 respondents and rural
sample of 23,109 respondents) carried out in the same locations.
Respondents were drawn mainly from earning members of the Indian workforce who derive cash incomes
from salaries, wages, profits and earnings from self employment and business activities (approximately 321
million persons nationally).
The 321 million figure is the base figure from which they have done about over a million households and
96,088 in depth interviews.
Data Source for this presentation
•This presentation is drawn from the data of the Invest India Incomes and Savings Survey which was
completed in June 2007.
•This is based on in-depth interviews with 1 lakh respondents aged 18-59 yrs with cash incomes and
supported by a household listing sample of 1 million.
•The figures projected refer to the 321 million paid work force of India in the presentation.

                                                                        Source: IIMS Data Works survey
Statutory Details: Sponsor: Reliance Capital Limited Trustee: Reliance Capital Trustee Co. Limited Investment Manager: Reliance Capital Asset Management
Limited. The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956. Free life insurance cover provided as a part of an
add on feature called as „Reliance SIP Insure‟ arranged and funded by Reliance Capital Asset Management Limited through “Reliance Group Term Insurance Scheme”
of Reliance Life Insurance Company Limited for insuring the outstanding SIP Insure installments. Subject to Conditions
Risk Factors: Reliance Growth Fund (Open-ended Equity Growth Scheme): The primary investment objective of the scheme is to achieve long term growth of
capital by investing in equity and equity related securities through a research based investment approach. Reliance Vision Fund (Open-ended Equity Growth
Scheme): The primary investment objective of the scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a
research based investment approach. Reliance Equity Opportunities Fund (Open-ended Diversified Equity Scheme): The primary investment objective of the
scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity related
securities and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Equity Fund (An open-ended
Diversified Equity Scheme): The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by
investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the
derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance
Equity Advantage Fund (Open ended Diversified Equity Scheme): The primary investment objective of the scheme is to seek to generate capital appreciation &
provide long-term growth opportunities by investing in a portfolio predominately of equity & equity related instruments with investments generally in S & P CNX Nifty
stocks and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Regular Savings Fund (An open
ended Scheme) Equity Option: The primary investment objective of this Option is to seek capital appreciation and/or to generate consistent returns by actively
investing in equity / equity related securities. Balanced Option: The primary investment objective of this Option is to generate consistent return by investing a major
portion in debt & money market securities & a small portion in equity & equity related instruments. Reliance Pharma Fund (Open-ended Pharma Sector Scheme):
The primary investment objective of the scheme is to seek to generate continuous returns by investing in equity and equity related or fixed income securities of
Pharma and other associated companies. Reliance Diversified Power Sector Fund (Open-ended Power Sector Scheme): The primary investment objective of the
scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of Power and other associated companies.
Reliance Media & Entertainment Fund (Open-ended Media & Entertainment Sector Scheme): The primary investment objective of the scheme is to generate
continuous returns by investing in equity and equity related or fixed income securities of Media & Entertainment and other associated companies. Reliance Banking
Fund (Open-ended Banking Sector Scheme): The primary investment objective of the scheme is to generate continuous returns by actively investing in equity and
equity related or fixed income securities of Banks. Mutual Funds and securities investments are subject to market risks and there is no assurance and no guarantee
that the Schemes objectives will be achieved. As with investments in any securities, the NAVs of the units issued under the Scheme can go up or down depending on
the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund is not indicative of future performance of the Scheme.
Reliance Growth Fund, Reliance Vision Fund, Reliance Equity Opportunities Fund, Reliance Equity Fund, Reliance Equity Advantage Fund and Reliance Regular
Savings Fund are only the names of the scheme and do not in any manner indicate either the quality of the Scheme, its future prospects or returns. The Sponsor is not
responsible or liable for any loss resulting from the operation of the Schemes beyond their initial contribution of Rs.1 lac towards the setting up of the Mutual Fund and
such other accretions and additions to the corpus. The NAV of the Schemes may be affected, interalia, by changes in the market conditions, interest rates, trading
volumes, settlement periods and transfer procedures. The Mutual Fund is not guaranteeing or assuring any dividends/ bonus. The Mutual Fund is also not assuring
that it will make periodical dividend/ bonus distributions, though it has every intention of doing so. All dividend/ bonus distributions are subject to the availability of
distributable surplus in the respective Scheme. For details of scheme features and scheme specific risk factors please refer to the scheme Offer Documents. Offer
Document and KIM cum application form is available at all the DISCs/ Distributors of RMF/www.reliancemutual.com. Please read the offer document of the
respective scheme carefully before investing.
 Thanks for your
 time
For More Details
Call : 4500 5000
Vista Wealth Consultants Pvt. Ltd




              A Reliance Capital company

								
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