Bajaj Capital India’s oldest & largest Investment Advisory and Financial Planning company Bajaj Capital : Key Facts Over 42 years’s experience as Investment Advisor and Financial Planners More than seven lakh satisfied customers all over India Countrywide network of over 142 branches Wide range of financial products and services Bajaj Capital being a corporate body will serve you till the maturity of your scheme i.e. 5/10/20/30 years. We can serve you any where in India which an individual agent can not do. Strong team of 1500 Qualified and experienced professionals like Certified Financial Planners, Chartered Accountants, Tax Experts and MBA’s. When it is a question of investing your money deal only with the leaders of the industry Impartial and independent Advice. Bajaj Capital does not have any shareholding in any Mutual Fund /Insurance Company and neither any Mutual Fund /Insurance Company has any stake in Bajaj Capital. Hence we give best advice in the interest of our clients. Bajaj Capital Ltd., Bajaj House, 97, Nehru Place, New Delhi-19, India Call Centre: 39881010 Visit us at: www.bajajcapital.com Please Visit | Write | Phone | E-mail us for complete details Ph. 011-41693000 New Delhi, For all metro cities call: 39881010 E-mail: info@bajajcapital.com Please contact us today For more details, please Contact us Also At: United India Life Building, F-Block, Connaught Place, New Delhi -110001, India. Ph.: 41790444 (30 Lines), 23314600 © All rights reserved in favour of Bajaj capital ltd. Reproduction of this brochure in whole or in part without written permission of the Company is prohibited. Immitation of any Label, Graphics&Colours is a Criminal&punishable offence. Risk Factors:-All investments in mutual funds are subject to market risks. Please read offer document of the Mutual Fund before investing. The Net Asset value (NAV) of the Scheme(s) may go up or down depending upon the factors and forces affecting the stock markets. There can be no assurance that the objectives of the Scheme(s) will be achieved. #Past performance of the Sponsor, AMC, Mutual Fund or any associates of the sponsor /AMC does not indicate the future performance of the scheme(s) of the mutual Funds. *Growth charts are worked out @18% p.a. assumed return in diversified equity mutual funds, although for the last 10 years return of diversified equity mutual funds has been around 35% p.a in top performing equity mutual funds. Charts shown in this booklet give a hypothetical example indicating power of compounding, rupee cost averaging and benefit of long term equity investments. GIVE US 15 MINUTES, WEWILL SHOWYOUHOWTOMAKE YOURCHILDREN CROREPATIES You, your wife and all your children can become Crorepaties by investing Rs. 1000/-per month each “Top Ranking Indian Mutual Funds gave highest returns for the last 10 years: up to 35% PA.” Times of India, News Delhi, Date:-20-11-06 Create wealth by investing in the growth schemes of top-ranking diversified Equity Mutual Funds of your choice through Systematic investment plan(SIP) . Bajaj Capital represents Mutual Funds promoted by State Bank of India, Life Insurance Corporation of India, Pru ICICI, HDFC, TATA,Birla, Reliance, Templeton, Fidelity etc. Since 1964 Drashti Investments drashti.investments@rediffmail.com Drashti Investments drashti.investments@rediffmail.comBy investing as little as Rs. 1000 per month, and your children can hope to get a rupees one crore (as per chart below) each when they are grown up and needs it the most. Create wealth through Systematic Investment Plans (SIP) of top-ranking Equity Mutual Funds growth schemes. Bajaj Capital represents Mutual Funds promoted by State Bank of India, Life Insurance Corporation of India,Pru ICICI, HDFC, Tata, Reliance, Franklin Templeton, Fidelity etc.Growth calculation chart as under: MAKE YOUR CHILDREN CROREPATIS …by investing only Rs 1,000 per child per month Bajaj Capital Financial Planning and wealth creation Guide RS. 1000 PER MONTH IS LIKELY TO GROW TO Rs. 1 CRORE OR MORE AS FOLLOWS POWER OF COMPOUNDING In case you want to invest more than Rs.1000/-per month, you should do it in the growth schemes of different Mutual Funds. For instance if you want to invest Rs. 5000/-per month, you should invest in 5 different Mutual Funds and you are likely to get Rs. 1 crore from each Mutual Fund, making a total of Rs. 5 Crores. TIP TO MAKE SEVERAL CRORES OF RUPEES Anytime withdrawl allowed 1 12000 2 26160 3 42869 4 62585 5 85851 6 113304 7 145698 8 183924 9 229030 10 282256 11 345062 12 419173 13 506624 14 609816 15 731583 16 875268 Year amount Year amount 17 1044816 18 1244883 19 1480962 20 1759536 21 2088252 22 2476137 23 2933842 24 3473934 25 4111242 26 4863265 27 5750653 28 6797771 29 8033369 30 9491376 30.4 10145591 *Calculated at an expected 18% rate of return per annum from equity Mutual Funds in India, though the average return for the last 10 years has been more than 35% per annum in top ranking diversified equity MUtual funds This is a hypothetical example showing power of compounding and benefit of long term equity investment Give your child a great start in life. By investing as little as Rs. 2,000 per month, and you are likely to accumulate Rs. 35 lakhs by the time your child is ready for higher studies when he or she is of 20 years of age or so. by investing Rs. 2,000 per month each for your Child’s Foreign/Higher Education YOU CAN GET AROUND RS. 35 LAKHS OR MORE Bajaj Capital Financial Planning and wealth creation Guide RS. 2000 PER MONTH INVESTED IN THE SIP (SYSTEMATIC INVESTMENT PLAN) OF DIVERSIFIED EQUITY MUTUAL FUND IS LIKELY TO GROW TO Rs. 35 LAKH OR MORE AS FOLLOWS POWER OF COMPOUNDING Create wealth through Systematic Investment Plans (SIP) of top-ranking Mutual Funds growth schemes . Bajaj Capital represents Mutual Funds promoted by State Bank of India, Life Insurance Corporation of India, Prudential ICICI, HDFC, Tata, Reliance, Franklin Templeton, F i d e l i t y etc.Growth calculation chart as under: 1 24000 2 52320 3 85738 4 125170 5 171701 6 226607 7 291397 8 367848 9 458061 10 564511 11 690123 12 838346 13 1013248 14 1219633 15 1463166 16 1750536 17 2089633 18 2489767 19 2961925 20 3519071 Anytime withdrawl allowed Year amount Year amount Give your children smooth landing in life. Give them higher education to have an edge over others in life Impact of inflation on higher education If the expenses on higher education are Rs. 5 lakhs today, after 20 years these will be Rs. 25 lakhs. Inflation assumed @5% *Calculated at an expected 18% rate of return per annum from equity Mutual Funds in India, though the average return for the last 10 years has been more than 35% per annum in top ranking diversified equity MUtual funds This is a hypothetical example showing power of compounding and benefit of long term equity investment Drashti Investments drashti.investments@rediffmail.comStart investing today to give your little daughter a gala send-off. By investing as little as Rs. 2000 per month, you can hope to accumulate Rs. 35 lakhs by the time your daughter is ready for marriage i.e when she is 20 year old or so. Create wealth through Systematic Investment Plans (SIP) of top-ranking Mutual Funds. Bajaj Capital represents Mutual Funds growth schemes promoted by State Bank of India, Life Insurance Corporation of India, Prudential ICICI, HDFC, Tata, Reliance, Franklin Templeton, Fidelity etc. Growth calculation chart as under: YOU CAN GET AROUND RS. 35 LAKHS OR MORE for your Daughter’s Wedding by investing Rs. 2000 per month Bajaj Capital Financial Planning and wealth creation Guide 1 24000 2 52320 3 85738 4 125170 5 171701 6 226607 7 291397 8 367848 9 458061 10 564511 11 690123 12 838346 13 1013248 14 1219633 15 1463166 16 1750536 17 2089633 18 2489767 19 2961925 20 3519071 Anytime withdrawl allowed Impact of inflation on marriage expenses in future If the expenses on good style of marriage are Rs. 5 lakhs today, after 20 years are likely to be around Rs. 25 & 30 lakhs. Start investing from today and lead worry free life. Inflation assumed@5% *Calculated at an expected 18% rate of return per annum from equity Mutual Funds in India, though the average return for the last 10 years has been more than 35% per annum in top ranking diversified equity MUtual funds This is a hypothetical example showing power of compounding and benefit of long term equity investment RS. 2000 PER MONTH IN THE SIP (SYSTEMATIC INVESTMENT PLAN) OF DIVERSIFIED EQUITY MUTUAL FUND (GROWTH SCHEME) POWER OF COMPOUNDING Year amount Year amount YOU CAN GET RS. 50 LAKHS OR MORE To buy your Dream House/Flat in any locality of your choice Just by investing Rs. 3000 per monthBajaj Capital Financial Planning and wealth creation Guide RS. 3000 PER MONTH INVESTED IN THE SIP (SYSTEMATIC INVESTMENT PLAN) OF DIVERSIFIED EQUITY MUTUAL FUND IS LIKELY TO GROW FROM Rs. 50 LAKH TO RS. 1 CRORE AS UNDER POWER OF COMPOUNDING Start investing Rs. 3000 per month in the Systematic Investment Plans (SIP) of top ranking diversified Equity Mutual Funds (growth scheme) and your money is likely to grow as per this chart. Create wealth through Systematic Investment Plans (SIP) of top-ranking Mutual Funds.Bajaj Capital represents Mutual Funds promoted by State Bank of India, Life Insurance Corporation of India, Prudential ICICI, HDFC, Tata, Reliance, Franklin Templeton, Fidelity. etc. 1 36000 2 78480 3 128606 4 187756 5 257552 6 339911 7 437095 8 551772 9 687091 10 846767 11 1035185 12 1257519 13 1519872 14 1829449 15 2194750 16 2625805 17 3134449 18 3734650 19 4442887 20 5278607 21 6264756 22 7428412 23 8801526 23.8 10075945 one crore Anytime withdrawl allowed Avoid loan from Bank for peaceful life. Investment in SIP (Systematic investment plan) of top-ranking diversified Equity Mutual Funds growth schemes will help you to accumulate huge funds conveniently in due course of time for buying your dream House/Flat with your own money . *Calculated at an expected 18% rate of return per annum from equity Mutual Funds in India, though the average return for the last 10 years has been more than 35% per annum in top ranking diversified equity MUtual funds This is a hypothetical example showing power of compounding and benefit of long term equity investment Year amount Year amount Drashti Investments drashti.investments@rediffmail.com*Calculated at an expected 18% rate of return per annum from equity Mutual Funds in India, though the average return for the last 10 years has been more than 35% per annum in top ranking diversified equity MUtual funds This is a hypothetical example showing power of compounding and benefit of long term equity investment Indicative Pension Chart Accumulated Rate of return/Approximate Return: amount invested : Dividend : Rs. 1 Crore 11% pa Rs. 91,667/-per month Rs. 1 Crore 12%pa Rs. 1 Lakh per month Rs. 1 Crore 15%pa Rs. 1.25 Lakhs per month Average 12% pa return on Rs. 2 crores can be around Rs. 2 lakhs per month Name Country Return in Reliance Growth Fund India 35.21 HDFC Equity Fund India 34.29 Franklin India Blue Chip India 32.18 Principal Personal Tax Saver India 32.1 India Advantage (Birla Sunlife) India 31.88 Franklin India Prima Plus India 31.8 HSBC GIF India Equity (Luxemberg) India 31.42 Reliance Vison Fund Growth India 30.46 10 yrs(%) *Calculated at an expected 18% rate of return per annum from equity Mutual Funds in India, though the average return for the last 10 years has been more than 35% per annum in top ranking diversified equity MUtual funds This is a hypothetical example showing power of compounding and benefit of long term equity investment Create wealth through Systematic Investment Plans (SIP) of top-ranking Diversified Equity Mutual Funds (Growth Schemes). Bajaj capital represents Mutual Funds promoted by State Bank of India, Life Insurance Corporation of India, Pru ICICI, HDFC, Tata, Reliance, Franklin Templeton, Fidelity etc. Growth calculation chart as under: POWER OF COMPOUNDING 1 59000 2 69620 3 82152 4 96939 5 114388 6 134978 7 159274 8 187943 9 221773 10 261692 11 308796 12 364380 13 429968 14 507362 15 598687 16 706451 17 833612 18 983663 19 1160722 20 1369652 21 1616189 22 1907103 23 2250382 24 2655450 25 3133431 26 3697449 27 4362990 28 5148328 29 6075027 30 7168532 31 8458868 32 9981464 32.1 10148046 COMPARISON Comparative annualised return for investors in different investment options in India for the last 10 years PROVISION FOR PENSION When you get this amount in lump-sum some amount can be invested in regular interest paying Government Schemes paying currently around 9% p.a and some amount can be invested in Diversified Equity Mutual Funds (Dividend pay out option) where approximate yield has been around 18% p.a in the past. You and your wife can expect to earn handsome monthly return (you may call it life-long pension) around Rs.1 lakh per month each i.e. total Rs. 2 lakhs per month for both of you. Anytime withdrawl allowed 1 12000 2 26160 3 42869 4 62585 5 85851 6 113304 7 145698 8 183924 9 229030 10 282256 11 345062 12 419173 13 506624 14 609816 15 731583 16 875268 Year amount Year amount 17 1044816 18 1244883 19 1480962 20 1759536 21 2088252 22 2476137 23 2933842 24 3473934 25 4111242 26 4863265 27 5750653 28 6797771 29 8033369 30 9491376 30.4 10145591 Gold 8.95 % Property Average annualised return on prestigious properties in Delhi, Mumbai, Banglore and Chennai* 21.43% Direct Equity Shares average annualised return of 16 top performer equity shares 29.39% Equity Mutual Fund average annualised return on 8 top performing Equity Mutual Funds 32.04% Indian Mutual Funds gave highest returns Over 10-Year Period, List of 10 Best Performing Funds Globally The Times of India, New Delhi, Date:-20-11-06 Make your retired/old age comfortable and honourable Bajaj Capital Financial Planning and wealth creation Guide Your ONE TIME Investment of Rs. 50,000/-can grow to Rs. 1 crore or even more Bajaj Capital Financial Planning and wealth creation Guide Earn your own Pension upto Rs. 2 lakhs per month You and your wife can invest Rs. 1000/-each and both of you are likely to get Rs. 1 crore each, i.e. total Rs 2 crore. The following chart shows how your investment of Rs. 50,000 grows through the amazing power of compounding. Invest just ONE TIME investment of Rs. 50,000 in the growth scheme of any of the top ranking Diversified Equity Mutual Fund of your choice. You are likely to get around Rs. 1 crore or more over the period as per the chart given below: Growth Calculation Chart Year amount Year amount Drashti Investments drashti.investments@rediffmail.comONE TIME INVESTMENT JUST ONE TIME INVESTMENT OF ANY OF THE FOLLOWING AMOUNTS BECOME SUPER RICH MAKE CRORES AND CRORES OF RUPEES Whenever and whatever amount you can spare from time to time (say Rs. 20,000/-, Rs. 30,000/-, Rs. 40,000/-or Rs. 50.000), Just invest ONE TIME only in the growth schemes of top-ranking Diversified Equity Mutual Funds and you can hope to get Rs. 1 crore for every investment made by you. Resolve to make all the members of your family crorepatis. Bajaj Capital Financial Planning wealth creation Guide *Calculated at an expected 18% rate of return per annum, though the average return for the last 10 years has been more than 35% in some top performing equity funds This is a hypothetical example Showing power of compound interest and benefit of long-term equity investment Albert Einstein had correctly described compounding of interest as eighth wonder of the world Albert Einstein Anytime withdrawl allowed Rs.20 Thousand can accumulate to 10087730 in 37.6 years Rs.30 Thousand can accumulate to 10004139 in 35.1 years Rs.40 Thousand can accumulate to 10067440 in 33.4 years Rs.50 Thousand can accumulate to 10148046 in 32.1 years Rs.60 Thousand can accumulate to 10150641 in 31years Rs.70 Thousand can accumulate to 10035945 in 30 years Rs.80 Thousand can accumulate to 10047190 in 29.2 years Rs.90 Thousand can accumulate to 10066528 in 28.5 years Rs.1 lakh can accumulate to 10127634 in 27.9 years Rs.2 lakh can accumulate to 10107263 in 23.7 years Rs.5 lakh can accumulate to 10000791 in 18.1 years CAN GROW TO IN THE GROWTH SCHEME OF RS. 1 CRORE OR EVEN MORE TOP RANKING DIVERSIFIED EQUITY MUTUAL FUNDS, Patience pays A seed needs time and patience to become a fruit tree. A child needs time and patience to become an adult. SIP of Diversified Equity Mutual Funds (Growth Schemes) need time and patience to grow into huge amount. SIPs reward only long term investors because of rupee cost averaging and power of compounding. In short-term SIPs of 6 month or 1 year, return can be negative also. (I). Top Diversified equity mutual funds have given compounded annual return of more than 35% per annum for the last 10 years. (ii). The annual growth rate of reputed Indian companies is 20-30% p.a. (iii) Diversified Equity Mutual funds invest their money in Indian and multinational companies engaged in manufacturing and services industries. The demand for their products will go on increasing every year because of increase in population and increase in purchasing power in India. The value of their shares will go up when companies make more money, In turn the value of investment made by the mutual funds in these companies will also go up. Hence the investor who has invested in these mutual fund would get handsome returns. (iv). Your money will be invested by the mutual funds in number of reputed Indian and multinational companies engaged in different industries, hence your risk is reduced as you “do not put all your eggs in one basket” (v). Indian economy is on the growth path according to Indian and international economists (vi). Your investment will be handled by highly experienced and qualified mutual fund managers who have excellent track record HOW IT CAN HAPPEN In the past, Equity market was not wide, India growth story was not there, Indian companies were not growing so fast nationally and internationally. Mutual Funds and their innovative schemes were not there, tax-free investment options were not there, computerized calculations and compounding of return was not possible. With all these facilities now available, every investor in Diversified Equity Mutual Funds can hope to accumulate crores of rupees over a period of time. Bajaj Capital Financial Planning wealth creation Guide It was never so easy to accumulate crores of rupees in the past… as it is NOW Drashti Investments drashti.investments@rediffmail.comDisclaimer (a) The calculation and growth chart is just indicative. Your amount is likely to grow to more than Rs. 1 crore or may remain less than Rs. 1 crore, depending upon future performance of mutual funds in which you choose to invest. Read their offer documents before investing (b) The example above is merely illustrative in nature and should not be construed as investment advice by Bajaj capital. The trend of such returns may/may not be uniform during the SIP period and /or in future. It does not in any manner imply/suggest performance of any scheme of any mutual fund. (c) Mutual Funds do not assure any fixed return on your investment and neither past performance is a guarantee for future return. But since Top -Performing Mutual Funds have been giving return upto 35% per annum for the last 10 years, they are likely to show good performance in future also. SIP IS THE SAVIOUR FOR INVESTOR Systematic investment plan (SIP) in the growth schemes of Diversified Equity Mutual Funds have proved to be the best and time-tested method for wealth creation and for earning higher return. Inspite of various depressions in the stock market for the last 10 years, average return by top-performing equity mutual funds was 35%. SIP saves the investors from the jerks and jolts of the share market fluctuations. SIP has proved to be saviour for the long term investors. Bajaj Capital Financial Planning wealth creation Guide invest Rs. 2000 per month in the growth schemes of diversified Equity Mutual Fund through the systematic Investment Plan (SIP) of diversified Equity Mutual Fund (Growth Scheme)is likely to grow to Rs. 1 crore or more in due course of time. When you get Rs. 1 crore, you can invest some amount in Goverment Schemes and some amount in Diversified Equity Mutual Funds (Dividend pay-out options) and can hope to get an approximate return around Rs. one lakh per month, without spending your capital amount, which will take care of your higher expenses at that time. (see indicative chart on page no. 5). This pension can continue even for your next generation. In order to cover shortfall of your income in future, you have to beat inflation. Just BEAT INFLATION Did you know? If your expenses are Rs. 20,000 per month today, these will be Rs. 58,000 per month after 20 years?* Burden of inflation Bajaj Capital Financial Planning wealth creation Guide Build a dam against old age worries by accumulating huge wealth After 40 years of trial and errors of inventing a fool-proof system of creating huge wealth from stock market, Bajaj Capital’s investment Advisors/Financial Planners have come to the conclusion that systematic investment plan(sips) of diversified equity mutual funds (in their growth schemes) is the best option for long term investors. One can build aDAMagainst all sort of financial uncertainties in life. This DAM (substantial wealth) can be constructed by you conveniently brick (SIP) by brick (SIP) every month. ACT TODAY THE BEST TIME TO INVEST MONEY WAS 10 YEARS AGO. THE SECOND BEST TIME IS NOW *Inflation assumed @5% per annum SEBI Regulation: Mutual fund in India are governed by SEBI (Securities Exchange Board of India) Tax free return According to current income-tax rules dividends received from mutual funds are tax free as compared to a Bank Recurring Deposit, where interest is taxable. Also, when you get lump sum amount, you do not have to pay any tax as long-term capital gains from Mutual Funds are tax-free as per current tax rules. Transparency Quarterly statement will be sent to you by the mutual funds showing you as to where your money is invested. Flexibility: Your total control It is your money, hence you should keep on monitoring the performance of the mutual funds in which you chose to invest. If need be you can shift your investment from one mutual fund to another which is performing better. NO OTHER INVESTMENT IN INDIA OFFERS SO MANY UNIQUE FEATURES AS MUTUAL FUNDS Be an optimist. I have not seen any person who is pessimist and has lot of money Henry ford Drashti Investments drashti.investments@rediffmail.com